The Group expects to report full-year revenue of c. £7m, up from £5.5m in 2016/17.
Companies: Bioventix Plc
Ahead of the audited release of their full-year reports, Bioventix (LON: BVXP) have announced a trading update which highlights the Group's expected revenue of c. £7m in their financial year to 30 June 2017. This is up £1.5m from £5.5m from the last financial year, an increase of 27%.
The update noted that:
"Since the cost-base of the Company continues to follow a similar shallow trajectory as in previous years", both revenues and profits before tax are expected to be ahead of market expectations."
The Group, "who manufactures and supplies high-affinity sheep monoclonal antibodies (SMAs) for use in diagnostic applications such as clinical blood testing" has seen its shares jump over 17% in today's trading so far.
The audited accounts will be released on October 17.
Stockopedia today commented in their daily report on the Group, noting the company is relatively unique as they have just 12 staff, operate in a vertical niche, and that there are:
"Long lead times to developing the products, and specialist knowledge. This enables the company to deliver spectacularly high profit margins."
The Group's market cap is currently c. £113m and they trade at a PE ratio of 28x, double the industry median of 14x. Their high profit margins and low costs are visible on the Company's financials, with an operating profit of £4.2m against revenue of £5.5m for the last full financial year. This is a profitability margin of over 76%.
Private Investor World put out some interesting videos on Bioventix last year, delving into the Group's business model and a dissection of their last full financial year results.
Shareholders are clearly happy with today's update ahead of the audited figures to be released next month, bolstering the TTM figures already showing a profit margin of 79%.
