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Bioventix recent capital expenditure

Analysing companies' finances and value from their financial statements using ratios and formulae
TheMotorcycleBoy
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Bioventix recent capital expenditure

#369220

Postby TheMotorcycleBoy » December 23rd, 2020, 4:47 pm

Hi folks,

Wondered if anyone on here has a holding in Bioventix (The "Sheep Monoclonal Antibody" company BVXP). I have recently added their AR2020 figures to my analysis spreadsheet for them. There wasn't anything particularly concerning there and they are still growing FCF and earnings.

What I did notice was a bump in their capex, and wondered what had caused this. Here are the figures:


Although the firm is fairly unique (just a single premise, staff of about 12, and a Market Cap of almost £230M), and in the scheme of things the £340K capex is reasonably small, I wondered whether there an explanation since it's a lot higher than their average. There is certainly nothing noteworthy in

https://www.investegate.co.uk/Index.asp ... words=bvxp

the 2020 reporting period. I suspected it may be towards a new premise (I haven't got a clue how much buildings staffing between 12-30 people in Farnham cost!), but googles for "bioventix new building" reveal nothing.

Anyone on TLF know any gossip?
Matt

dealtn
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Re: Bioventix recent capital expenditure

#369232

Postby dealtn » December 23rd, 2020, 5:02 pm

TheMotorcycleBoy wrote:Hi folks,

Wondered if anyone on here has a holding in Bioventix (The "Sheep Monoclonal Antibody" company BVXP). I have recently added their AR2020 figures to my analysis spreadsheet for them. There wasn't anything particularly concerning there and they are still growing FCF and earnings.

What I did notice was a bump in their capex, and wondered what had caused this. Here are the figures:


Although the firm is fairly unique (just a single premise, staff of about 12, and a Market Cap of almost £230M), and in the scheme of things the £340K capex is reasonably small, I wondered whether there an explanation since it's a lot higher than their average. There is certainly nothing noteworthy in

https://www.investegate.co.uk/Index.asp ... words=bvxp

the 2020 reporting period. I suspected it may be towards a new premise (I haven't got a clue how much buildings staffing between 12-30 people in Farnham cost!), but googles for "bioventix new building" reveal nothing.

Anyone on TLF know any gossip?
Matt


"Research work on amyloid beta has been on-going for four years and will continue at Bioventix into 2021 as we work with our partners at Pre-Diagnostics (also in Oslo) and their clinical collaborators. The goal of the project is to identify fragments of amyloid beta in patient samples that would be helpful in dementia diagnostics. Pre- Diagnostics have completed development on their first amyloid fragment assay and plan to seek clinical research projects where the assay could provide pharmaceutical companies with additional data on amyloid biology during their clinical trials. We made a further investment in Pre-Diagnostics of £0.19 million during the year."

Possibly?

TheMotorcycleBoy
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Re: Bioventix recent capital expenditure

#369250

Postby TheMotorcycleBoy » December 23rd, 2020, 5:37 pm

dealtn wrote:
TheMotorcycleBoy wrote:Hi folks,

Wondered if anyone on here has a holding in Bioventix (The "Sheep Monoclonal Antibody" company BVXP). I have recently added their AR2020 figures to my analysis spreadsheet for them. There wasn't anything particularly concerning there and they are still growing FCF and earnings.

What I did notice was a bump in their capex, and wondered what had caused this. Here are the figures:


Although the firm is fairly unique (just a single premise, staff of about 12, and a Market Cap of almost £230M), and in the scheme of things the £340K capex is reasonably small, I wondered whether there an explanation since it's a lot higher than their average. There is certainly nothing noteworthy in

https://www.investegate.co.uk/Index.asp ... words=bvxp

the 2020 reporting period. I suspected it may be towards a new premise (I haven't got a clue how much buildings staffing between 12-30 people in Farnham cost!), but googles for "bioventix new building" reveal nothing.

Anyone on TLF know any gossip?
Matt


"Research work on amyloid beta has been on-going for four years and will continue at Bioventix into 2021 as we work with our partners at Pre-Diagnostics (also in Oslo) and their clinical collaborators. The goal of the project is to identify fragments of amyloid beta in patient samples that would be helpful in dementia diagnostics. Pre- Diagnostics have completed development on their first amyloid fragment assay and plan to seek clinical research projects where the assay could provide pharmaceutical companies with additional data on amyloid biology during their clinical trials. We made a further investment in Pre-Diagnostics of £0.19 million during the year."

Possibly?

Good shout. Did you find that on their website? Got a link?

Matt

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Re: Bioventix recent capital expenditure

#369255

Postby dealtn » December 23rd, 2020, 5:41 pm

TheMotorcycleBoy wrote:Good shout. Did you find that on their website? Got a link?

Matt


https://www.investegate.co.uk/bioventix ... 0000PCF8E/

RNS on Full Year results. Specifically the Research and Future Developments section.

TheMotorcycleBoy
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Re: Bioventix recent capital expenditure

#369258

Postby TheMotorcycleBoy » December 23rd, 2020, 5:48 pm

dealtn wrote:
TheMotorcycleBoy wrote:Good shout. Did you find that on their website? Got a link?

Matt


https://www.investegate.co.uk/bioventix ... 0000PCF8E/

RNS on Full Year results. Specifically the Research and Future Developments section.

Thanks Dealtn,

I got there now. I note their SP lifted by about 3.5% after about 2.30 today. Having said that several of my holdings did too. I guess that was market noise. (EDIT Brexit/EU talks probably).

Matt

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Re: Bioventix recent capital expenditure

#369514

Postby TheMotorcycleBoy » December 24th, 2020, 12:31 pm

I just read their Results from the previous year

https://www.investegate.co.uk/bioventix ... 0000P459A/

and they have referred to plans this future spend in there:

Work on amyloid beta continues in our lab and we expect to spend around another year making antibodies and constructing assays for the testing of amyloid beta fragments in human samples. Our partners at Pre-Diagnostics (coincidentally, also in Oslo) and their clinical collaborators are performing work to identify the utility of these antibodies and assays in dementia diagnostics. We made a further investment in Pre-Diagnostics of approximately £100k during the year and a further £200k shortly after the year-end.

However after looking further into this it seems that BVXPs recent Capex spend is more complex than this, and being as they are an AIM-listed firm, it seems hard to get much detail on. Anyway in my search I looked back at BVXP's AR2020, where I reminded myself that the £340k which aroused my curiosity is described as "Tangible Fixed Assets", and below this is a figure for "Unlisted and other investments" which actually seems somewhat closer to the £0.19M that Dealtn found in 2020's Results RNS, (i.e. the £200k that I found mention of in 2019's).

Image

In other words, perhaps £100k and £200k in 2019 and 2020 respectively is mostly research costs (Intangibles?), and the £340k I originally mentioned continues to go unexplained. FWIW I modified the earlier spreadsheet figures to include both types of capex:


So we are now looking at 2020's intangible (I'm guessing research with Pre-Diagnostics etc. etc.) and tangible asset outlay (who knows? buildings? lab equipment?) both being a fair bit higher than usual. The speculator in me, wonders if they are due to make an announcement sometime soon describing the rewards of this investment.

Matt

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Re: Bioventix recent capital expenditure

#369519

Postby PinkDalek » December 24th, 2020, 12:44 pm

TheMotorcycleBoy wrote:... So we are now looking at 2020's intangible (I'm guessing research with Pre-Diagnostics etc. etc.) and tangible asset outlay (who knows? buildings? lab equipment?) both being a fair bit higher than usual.


Have you looked at the filed 30 June 2020 Statutory Accounts https://find-and-update.company-information.service.gov.uk/company/04923945/filing-history ?

Tangible Fixed assets additions:

P&M £175,609
Office equip £164,011

More may be revealed there regarding your other queries.

TheMotorcycleBoy
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Re: Bioventix recent capital expenditure

#369625

Postby TheMotorcycleBoy » December 24th, 2020, 7:18 pm

PinkDalek wrote:
TheMotorcycleBoy wrote:... So we are now looking at 2020's intangible (I'm guessing research with Pre-Diagnostics etc. etc.) and tangible asset outlay (who knows? buildings? lab equipment?) both being a fair bit higher than usual.


Have you looked at the filed 30 June 2020 Statutory Accounts https://find-and-update.company-information.service.gov.uk/company/04923945/filing-history ?

Tangible Fixed assets additions:

P&M £175,609
Office equip £164,011

More may be revealed there regarding your other queries.

Thanks PD,

On the AR2020 again. I know they are a good firm, but they'd be so much easier to analyse if they actually uploaded electronic copies of their PDF, rather than this grotty scanned nonsense. Even the AR on their website is like this.

Back to heart of the matter. What does £175k of P&M translate to for a firm of 12? Extension to a lab?

Matt

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Re: Bioventix recent capital expenditure

#375478

Postby MaynardPaton » January 10th, 2021, 1:53 pm

Hi Matt,



“Back to heart of the matter. What does £175k of P&M translate to for a firm of 12? Extension to a lab?”


Yes!

 The tangible expenditure was all explained in the RNSs:

investegate.co.uk/bioventix-plc--bvxp-/prn/results-for-the-year-ended-30-june-2019/20191021070000P459A/

“Starting towards the end of the financial year and continuing during Autumn 2019, we have embarked on a modest expansion of the production and research labs. Together with furniture and lab equipment upgrades, an investment of approximately £300k will be made in the Farnham facility, demonstrating our long-term commitment to the site.”

investegate.co.uk/bioventix-plc--bvxp-/prn/correction---interim-results/20200331174737P8321/
“We have continued with the development of our Farnham laboratory. The work on our manufacturing facilities has been completed and we are now fully operational. The last remaining phase of the development work (cost ~£100k) covering the technology development lab is planned for later in 2020."

investegate.co.uk/bioventix-plc--bvxp-/prn/results-for-the-year-ended-30-june-2020/20201019070000PCF8E/

“Development of the lab facilities continued during the year with the refurbishment of the antibody technology lab. New lab furniture and lab equipment were acquired which will assist our technology development activities, including a significant expansion of our e.coli (bacterial) fermentation capability. This capability is particularly well suited to the library antibodies such as the THC sandwich candidates mentioned above. This further underlines our long-term commitment to the Farnham facility.”

True, the capex was higher than usual. But versus cash generated from operations of £7m, remained small beer and not really of much shareholder consequence.

The purchase of unlisted/other investments relates to Pre-Diagnostics and similar.

The main issue with BVXP is not so much in the accounting, but the dependence on troponin and Vitamin D antibodies for the bulk of current and expected future earnings. How those antibodies perform could have a significant influence on the share price over the next few years.

If you are interested, I have written extensively about Bioventix on my blog: maynardpaton.com/bvxp/

Maynard

(sorry about the links, I am not allowed to post them)

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Re: Bioventix recent capital expenditure

#375494

Postby TheMotorcycleBoy » January 10th, 2021, 2:53 pm

MaynardPaton wrote:Hi Matt,



“Back to heart of the matter. What does £175k of P&M translate to for a firm of 12? Extension to a lab?”


Yes!

 The tangible expenditure was all explained in the RNSs:

investegate.co.uk/bioventix-plc--bvxp-/prn/results-for-the-year-ended-30-june-2019/20191021070000P459A/

“Starting towards the end of the financial year and continuing during Autumn 2019, we have embarked on a modest expansion of the production and research labs. Together with furniture and lab equipment upgrades, an investment of approximately £300k will be made in the Farnham facility, demonstrating our long-term commitment to the site.”

investegate.co.uk/bioventix-plc--bvxp-/prn/correction---interim-results/20200331174737P8321/
“We have continued with the development of our Farnham laboratory. The work on our manufacturing facilities has been completed and we are now fully operational. The last remaining phase of the development work (cost ~£100k) covering the technology development lab is planned for later in 2020."

investegate.co.uk/bioventix-plc--bvxp-/prn/results-for-the-year-ended-30-june-2020/20201019070000PCF8E/

“Development of the lab facilities continued during the year with the refurbishment of the antibody technology lab. New lab furniture and lab equipment were acquired which will assist our technology development activities, including a significant expansion of our e.coli (bacterial) fermentation capability. This capability is particularly well suited to the library antibodies such as the THC sandwich candidates mentioned above. This further underlines our long-term commitment to the Farnham facility.”

Thanks Maynard,

I thought as much. Guess I was somewhat lost in the numbers and overlooked that. I'll chalk that one up as a "lesson to learn", i.e. the words are as important as the numbers!

The main issue with BVXP is not so much in the accounting, but the dependence on troponin and Vitamin D antibodies for the bulk of current and expected future earnings. How those antibodies perform could have a significant influence on the share price over the next few years.

Totally agree. I have a decent little holding in them, but worry since whenever they report, they state words to the effect of "Vit D revenue growth has plateued".

If you are interested, I have written extensively about Bioventix on my blog: maynardpaton.com/bvxp/

Thanks again. I believe I may have already visited when searching for BVXP! When was your most recent update?

thanks Matt

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Re: Bioventix recent capital expenditure

#375546

Postby PinkDalek » January 10th, 2021, 5:41 pm

MaynardPaton wrote:(sorry about the links, I am not allowed to post them)

Another post or two and you'll be up and running.

TheMotorcycleBoy wrote:... I believe I may have already visited when searching for BVXP! When was your most recent update?

In case Maynard doesn't return soon, the answer would appear to be 12 November 2020 https://maynardpaton.com/2020/11/12/bioventix-very-satisfactory-fy-2020-showcases-record-79-margin-5th-consecutive-annual-special-dividend-and-webinar-remarks-of-troponin-sales-quadrupling-by-fy-2022/.


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