Biohit Oyj Interim Report, 21 August 2014 at 9:30 am local time (EEST)
SUMMARY
January–June / H1 2014
- Net sales grew by 50.9% compared with H1/2013
- Net sales EUR 2.0 million (EUR 1.4 million)
- Operating result, continuing operations EUR -2.4 million (EUR -3.4 million)
- Result for the reporting period, continuing operations EUR -2.3 million (EUR -3.5 million)
- Result for the reporting period, discontinued operations EUR 3.3 million (EUR 0.0 million)
- Total result for the reporting period EUR 1.0 million (EUR -3.5 million)
- Net sales from international operations 90.1% (83.7%) of total net sales
- Equity ratio 84.7% (80.3%)
April–June / Q2 2014
- Net sales grew by 39.3% compared with Q2/2013
- Net sales EUR 1.1 million (EUR 0.8 million)
- Operating result, continuing operations EUR -1.3 million (EUR -2.4 million)
- Result for the reporting period, continuing operations EUR -1.3 million (EUR -2.5 million)
- Result for the reporting period, discontinued operations EUR 0.0 million (EUR 0.0 million)
- Total result for the reporting period EUR -1.3 million (EUR -2.5 million)
- Net sales from international operations 89.5% (86%) of total net sales
- Equity ratio 84.7% (80.3%)
PRESIDENT & CEO SEMI KORPELA:
'During the second quarter of 2014, our net sales grew by 39.3% year on year. In business operations, we focused on supporting our international distributor network, investing in clinical research, and preparing for new product launches.
We started two clinical trials for prevention of migraine-type headache attacks, testing the efficacy of Acetium® capsule in novel clinical indications. The purpose of the trial is to assess the effect of Acetium® capsule in prevention of headache attacks among patients suffering from migraine or cluster/Horton headache. Both studies will be conducted as multi-center clinical trials in collaboration with Terveystalo Oy and Aava Medical Center altogether in six cities in Finland.
New Acetium® research results were introduced in the major international meeting for gastroenterologists (Digestive Disease Week) in Chicago. The Congress examined Acetium® capsule results from the studies carried out in Japan and Sweden, which confirmed the earlier results of Acetium® studies. The studies found that Acetium® binds 60 to 80 % of Group I carcinogen acetaldehyde, forming a harmless compound that is excreted from the body. The results are clinically highly significant, since carcinogenic DNA-changes caused by acetaldehyde increase exponentially in increasing acetaldehyde concentrations. Based on the results, manuscripts will be written for their publication in international scientific journals.
The conference also heard the results of an Italian study, which has found Acetium® capsule to improve the condition of the gastric mucosa in patients diagnosed with anacidic stomach (atrophic gastritis) caused by a Helicobacter pylori infection or autoimmune disease. This study involved the next stage of an earlier trial, announced by Biohit in September 2013, with a larger number of patients and a longer treatment period. Based on these results, Biohit will launch a completely new controlled double-blind clinical study with a research team consisting of Italian and German scientists. The new study will assess the efficacy of Acetium® capsules in recovering from atrophic gastritis in a sample of 120 biopsy-confirmed patients.
During the reporting period, we continued to expand our distributor network. Bestbion dx GmbH was appointed as a quick tests distributor in Germany, Gulfmed Egypt was appointed as a quick tests distributor in Egypt and Gulf Orlando Medical Co. was appointed as a quick tests distributor in Kuwait. Aloris Vital, S.r.o. was appointed our diagnostics distributor in Slovakia and the Czech Republic. Ildengun Khoshuu Co., LTD was appointed the distributor of Acetium® capsules in Mongolia.
After the end of the reporting period, we signed a distributor agreement with Taiwanese Giraffes Pharmaceutical Company. The agreement entered into force immediately, giving Giraffes Pharma exclusive rights to distribute Acetium® capsules and Acetium® lozenge in Taiwan. Biohit Oyj signed a distribution agreement with Eastar Pharmaceuticals LLC, whichgains exclusive rights for the distribution of Acetium® lozenge in China. The Acetium® lozenge Chinese registration procedures and distribution channel preparations started immediately. In order to boost the sales and marketing of Biohit's antibodies to research institutes and the diagnostics industry, we signed agreements with R&D Systems China in China, Taiwan and Hong Kong. Meditecno Médicos e Sistemade Diagnóstico Lda. is our new distributor of diagnostics products in Portugal and Al Misbar Medical Technology Co. is our new distributor of diagnostics products in Jordania.
During the reporting period, we started the marketing of a new diagnostic test, Biohit Active B12, which allows the diagnosis of biologically active B12 vitamin deficiency from venous blood sample. The registration of Acetium® capsules in Mexico is delayed due to the organizational changes taking place in the local register authority. The GastroPanel® validation project for the Dynex Technologies DS2 – ELISA automated system has been completed. Dynex DS2 users can now run the GastroPanel® test in accordance with a protocol validated by Biohit.'
CONSOLIDATED KEY FIGURES
| 4-6/2014 | 4-6/2013 | 1-6/2014 | 1-6/2013 | |
| Net sales (MEUR) | 1.1 | 0.8 | 2.0 | 1.4 |
| Operating profit/loss, continuing operations (MEUR) | -1.3 | -2.4 | -2.4 | -3.4 |
| Profit/loss before taxes (MEUR) | -1.2 | -2.5 | -2.2 | -3.5 |
| Profit/loss for the period, continuing operations (MEUR) | -1.3 | -2.5 | -2.3 | -3.5 |
| Profit/loss for the period, discontinued operations (MEUR) | 0.0 | 0.0 | 3.3 | 0.0 |
|
Profit/loss for the period, total (MEUR) |
-1.3 | -2.5 | 1.0 | -3.5 |
| Average number of personnel | 49 | 42 | 47 | 39 |
| Number of personnel at the end of the period | 49 | 45 | 49 | 45 |
| Equity ratio (%) | 84.7% | 80.3% | 84.7% | 80.3% |
| Earnings per share, continuing operations (EUR) | -0.09 | -0.18 | -0.16 | -0.25 |
| Earnings per share, discontinued operations (EUR) | 0.23 | |||
| Shareholder equity per share (EUR) | 1.03 | 1.77 | 1.03 | 1.77 |
| Average number of shares during the period | 13,857,241 | 13,692,736 | 13,834,958 | 13,654,164 |
| Number of shares at the end of the period | 13,985,593 | 13,795,593 | 13,985,593 | 13,795,593 |
REPORTING
Biohit's product portfolio consists of diagnostic tests, acetaldehyde-binding products, and monoclonal antibodies. All business is reported under a single segment, including liquid handling products, instruments and software.
NET SALES AND RESULT
January–June
Net sales grew by 50.9% compared with 1–6/2013.
The operating loss from continuing operations was EUR -2.4 million (EUR -3.4 million 1–6/2013). The result for continuing operations during the reporting period totalled EUR -2.3 million (EUR -3.5 million). In order to exploit the marked potential of our products and the resulting business growth, we must make substantial investments in building a distributor and partner network and supporting these partners.
The result for discontinued operations during the reporting period totalled EUR 3.3 million (EUR 0.0 million). In conjunction with the liquid handling business divestment in late 2011, EUR 3.5 million of the gains on the sale was not recognised due to the terms of the sale agreement and other factors related to the sale that remained open at the time. The amount was recognised on 31 March 2014, when the deal was closed.
The result for the reporting period totalled EUR 1.0 million (EUR -3.5 million).
Consolidated net sales and result for continued operations
| 4-6/2014 | 4-6/2013 | Change | 1-6/2014 | 1-6/2013 | Change | 1-12/2013 | |
| Net sales MEUR | 1.1 | 0.8 | 0.3 | 2.0 | 1.4 | 0.7 | 3.5 |
| Change compared with the previous year (%) | 39.3 % | 50.9 % | |||||
| Operating income MEUR | -1.3 | -2.4 | 1.1 | -2.4 | -3.4 | 1.0 | -5.9 |
| Change compared with the previous year (%) | 51.5 % | ||||||
|
Operating income (% of net sales) |
-113 % | -254 % | -170 % |
The impact of currency exchange rates
During the reporting period, exchange rates did not have a significant influence, EUR 0.0 million (EUR 0.0 million).
BALANCE SHEET
On 30 June 2014, the balance sheet total was EUR 17.0 million (EUR 30.5 million) and the equity ratio was 84.7% (80.3%).
FINANCING
Biohit Oyj enjoys a strong financial position, which allows determined investments in an international distributor network as well as the development and commercialisation of new products. At the end of the reporting period, the company's financial assets totalled EUR 11.9 million (EUR 18.3 million).
RESEARCH AND DEVELOPMENT
R&D operations focused on improvements and further developments to existing innovations and products, and on their commercialisation. Biohit also employs external experts and subcontractors in its R&D operations. Development expenditure on the diagnostics business has not been capitalised. Research and development expenditure during the reporting period amounted to EUR 0.5 million (EUR 0.5 million).
Our development activities focused on the GastroPanel® standardisation project and launch of ColonView, Biohit Active B12 and Biohit Calprotectin tests.
As part of our research activities we initiated a research project on smoking cessation (Acetium® lozenge as the research product), two comparative trials of the celiac quick test in overseas research institutes and a study assessing eradication of Helicobacter pylori infection, which will be continued in laboratory tests.
During the reporting period, we launched two clinical trials for prevention of migraine-type headache attacks (Acetium® capsules as the research product). In Brazil, having received the research permission from the hospital ethical committee, we initiated a comparative trial of the ColonView test, involving a sample of 500 colonoscopy patients. The ColonView test will be compared to another test type as the screening method for colorectal cancer.
INVESTMENTS
Gross investments during the reporting period totalled EUR 0.1 million (EUR 2.2 million).
PERSONNEL
During the reporting period, the average number of personnel employed by the Group was 49 (42 ) of whom 40 (31) were employed by the parent company and 9 (11) by its subsidiaries. At the end of the reporting period, the Group employed 49 (45) personnel, of whom 40 (34) were employed by the parent company and 9 (11) by the subsidiaries.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Biohit’s key risks have to do with the investments required for business growth. There are risks involved in areas such as the success of clinical trials, new market areas, the selection and development of distribution channels, personnel recruitment, registration processes, product pricing, and the political decision-making affecting the progress of screening programmes. Significant short-term risks are associated with the selection of new market areas, the timing of expansion into selected markets, and product success in these markets. The recent increase in uncertainty factors associated with international politics may have an unfavourable impact on the company's business.
The duration of the product registration process is different in each market area, and affects the company's business development. It is not possible to accurately assess the time it takes to complete all registrations in the main markets and to begin generating net sales.
When investing liquid assets, the objective is to gain a return on investment with a minimum risk of equity loss. The investment portfolio consists of deposits, money market investments and corporate loans. A fundamental aspect in portfolio management is sufficient diversification across different asset classes, investment instruments and counterparties. Biohit conducts its investment activities with at least two partners.
Thanks to its wide customer base, Biohit does not materially depend on any individual customers or individual project deliveries, with the exception of GastroPanel® sales in China, which currently represents a major business for Biohit. Most of the company’s business is conducted in euro, and the indirect effects of currency exchange rate fluctuations are considered minor.
MAIN EVENTS IN THE REPORTING PERIOD
New product: Biohit Active B12 for diagnosis of B12 vitamin deficiency
During the reporting period, Biohit started the marketing of a new diagnostic test, which allows the diagnosis of B12 vitamin deficiency from venous blood sample. Vitamin B12 deficiency can occur in seemingly healthy people, and the risk increases with age. Unlike conventional tests, the new test does not measure the level of total B12 but the available active form of vitamin B12, holotranscobalamin, level in the blood. The new test is CE-IVD registered and at the time of market entry available in European countries.
Biohit's Acetium® registration incomplete in Mexico
The registration of Acetium® capsules in Mexico is delayed due to the organizational changes taking place in the local register authority.
New distributor deals during the reporting period
During the reporting period, we continued to expand our distributor network. Bestbion dx GmbH was appointed as a quick tests distributor in Germany, Gulfmed Egypt was appointed as a quick tests distributor in Egypt and Gulf Orlando Medical Co. was appointed as a quick tests distributor in Kuwait. Aloris Vital, S.r.o. was appointed our diagnostics distributor in Slovakia and the Czech Republic. Ildengun Khoshuu Co., LTD was appointed the distributor of Acetium® capsules in Mongolia.
The GastroPanel® validation project for the automated Dynex system completed
The GastroPanel® validation project for the Dynex Technologies DS2 – ELISA automated system has been completed. DS2 users can now run the GastroPanel® test in accordance with a protocol validated by Biohit. Automated Dynex DS2 systems have already been delivered to over 1,000 laboratories globally. The automated Dynex ELISA analyser, which utilises the vertical measurement method invented and developed by Professor Osmo Suovaniemi, enhances GastroPanel® 's availability and usability (for more information, visit www.biohithealthcare.com/about-us/history: Aggressive innovation and patenting strategy). With the help of an integrated system, small- and medium-sized laboratories can easily and cost-effectively add GastroPanel® to their range of services.
Annual General Meeting
Biohit Oyj's Annual General Meeting (AGM) took place on Monday 14 April 2014. The AGM adopted the parent company's financial statements and the consolidated financial statements for 2013, and discharged the members of the Board of Directors and the Chief Executive Officer from liability.
Dividend payout
As proposed by the Board of Directors, the AGM decided that the loss for the financial period ended would be recorded in the profit and loss account. As proposed by the Board of Directors, the AGM decided that on the basis of the financial statements to be adopted for the financial period ended on 31 December 2013, a dividend of EUR 0.72 per each A share and EUR 0.7234 for each B share would be paid. The dividend was paid to shareholders recorded in the company's shareholder register on the matching day, 17 April 2014. The dividend was paid out on 28 April 2014.
Members of the Board of Directors
The AGM decided that the number of members of the Board of Directors would be five (5), and re-elected the following members to the Board until the end of the next AGM: Professor Osmo Suovaniemi, Professor Mikko Salaspuro, Commercial Counselor Eero Lehti, and Seppo Luode, MSc (Engineering), as well as President and CEO Franco Aiolfi. A decision was made at the Annual General Meeting to pay a meeting fee of EUR 1,600 to the Chairman of the Board and a meeting fee of EUR 1,500 to other Board members.
Election of the auditor
Authorized public accountants PricewaterhouseCoopers Oy were elected as Biohit Oyj's auditors, with Authorized Public Accountant Pasi Karppinen as chief auditor, for a term expiring at the end of the next AGM.
Amendment to the Articles of Association
As proposed by the Board of Directors, the AGM decided to amend Article 3 of the Articles of Association so as to remove the provisions on the minimum and maximum amounts of share capital and shares. In addition, as proposed by the Board of Directors, the AGM decided to abolish par value in Article 4 of the Articles of Association.
The new wording of Article 3 of the Articles of Association is as follows:
"Article 3 Biohit Oyj's shares are divided into A series and B series shares. In the general shareholders’ meeting, one A series share entitles the holder to 20 votes, while one B series share entitles the holder to 1 vote.
In terms of dividends, B series shares receive dividends that are 2 (two) percentage points higher than A series shares in relation to the nominal values. In applying this provision, the share par value is considered to be EUR 0.17, which was the par value of the company share at the time when the company decided to abolish the par value of shares.
In the case of dissolution of the company due to a merger or some other reason, holders of A and B series shares have an equal right to merger consideration or other compensation payable due to dissolution.
The shares of the company are listed in a book-entry security system.
An A series share can be converted, upon the request of its holder, into a B series share by a decision of the Board of Directors, entitling the holder to receive one B series share for one A series share."
As proposed by the Board of Directors, the AGM decided that Article 4 of the Articles of Association will be replaced by a provision specifying that the company's shares do not have par value.
The new wording of Article 4 of the Articles of Association is as follows: "Article 4 The company's shares do not have par values."
Authorization of the Board of Directors to decide on the issue of shares and the special rights entitling to shares
The AGM authorized the Board of Directors to decide on the issue of shares and the special rights entitlement to shares, referred to in Chapter 10, Section 1 of the Limited Liability Companies Act, as follows:
The maximum number of new B series shares to be issued pursuant to the special rights is 3,000,000, which corresponds to approximately 30% of the company's B series shares.
The Board of Directors decides on all terms and conditions regarding the issue of shares and the issue of special rights. The issue of shares and the issue of special rights entitlement to the receipt of shares can occur in deviation from the subscription right of shareholders (special issue).
Such an authorization remains valid for three years from the resolution of the AGM.
The printed version of Biohit's 2013 Annual Report was distributed to the shareholders at the AGM. All decisions taken at the shareholder meeting were unanimous. The minutes of the AGM are available to shareholders on the company's website at www.biohithealthcare.com/investors.
MAJOR EVENTS AFTER THE END OF THE PERIOD
New distributor agreements
After the end of the reporting period, we signed a distributor agreement with Taiwanese Giraffes Pharmaceutical Company. The agreement entered into force immediately, giving Giraffes Pharma exclusive rights to distribute Acetium® capsules and Acetium® lozenge in Taiwan. Biohit Oyj signed a distribution agreement with Eastar Pharmaceuticals LLC, whichgains exclusive rights for the distribution of Acetium® lozenge in China. The Acetium® lozenge Chinese registration procedures and distribution channel preparations started immediately. In order to boost the sales and marketing of Biohit's antibodies to research institutes and the diagnostics industry, we signed agreements with R&D Systems China in China, Taiwan and Hong Kong. Meditecno Médicos e Sistemade Diagnóstico Lda. is our new distributor of diagnostics products in Portugal and Al Misbar Medical Technology Co. is our new distributor of diagnostics products in Jordania.
Chinese Health Associations give consensus clause on early gastric cancer screening with GastroPanel® entity
Chinese health associations The Chinese Society of Digestive Endoscopy and The Society of Ontological Endoscopy of Chinese Anti-Cancer Association have given a consensus clause regarding screening, endoscopic diagnosis and treatment of early gastric cancer in China. Consensus clause recommends serum screening with Pepsinogen-1, Pepsinogen-2, Gastrin-17 and Helicobacter pylori tests that together form GastroPanel® entity.
SHARES AND SHAREHOLDERS
Biohit Oyj's shares are divided into A series and B series shares. There are 2,975,500 A series shares and 11,010,093 B series shares, totalling 13,985,593 shares. A series shares confer 20 votes per share and B series shares confer 1 vote per share. Supposing that the market capitalization value for A and B series shares is equal, the total market capitalization value at the end of the period was EUR 85.9 million (EUR 86.8 million on 30 June 2013).
Biohit Oyj's B series shares are quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group under the code BIOBV.
| BIOBV/NASDAQ OMX Helsinki | 1-6/2014 | 1-6/2013 |
| High (EUR) | 8.17 | 9.10 |
| Low (EUR) | 5.42 | 4.00 |
| Average (EUR) | 6.85 | 6.54 |
| Latest (EUR) | 6.14 | 6.29 |
| Turnover (EUR) | 17,286,862 | 45,435,364 |
| Turnover volume | 2,522,648 | 6,946,721 |
Shareholders
At the end of the reporting period on 30 June 2014, the company had 6,607 shareholders (6,126 on 31 December 2013). Private households held 78.1% (77.6%), companies 20.1% (20.6%), public sector organizations 0.0% (0.0%) and non-profit organizations 0.0% (0.0%). Foreign ownership or nominee registrations accounted for 1.7% (1.7%) of shares.
Further information on the shares, major shareholders, and management shareholdings is available on the company's website at www.biohithealthcare.com/investors.
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance with the requirements of the IAS 34 standard.
All business operations are presented as one segment. Biohit Oyj has applied the same accounting principles in preparing this interim report as for its financial statements of 2013. The IFRS standards that came into effect in 2014 did not have a material impact on the accounting principles.
All the figures in the interim report have been rounded up or down, due to which the sums of figures may deviate from the sum total presented.
The figures in this interim report have not been audited.
CONSOLIDATED INCOME STATEMENT
| MEUR |
4-6/ 2014 |
4-6/ 2013 |
Change |
1-6/ 2014 |
1-6/ 2013 |
Change |
1-12/ 2013 |
| Net sales | 1.1 | 0.8 | 0.3 | 2.0 | 1.4 | 0.6 | 3.5 |
| Materials and services | -0.5 | -0.4 | -0.1 | -0.8 | -0.8 | 0.0 | -1.7 |
| Gross margin | 0.6 | 0.4 | 0.2 | 1.2 | 0.6 | 0.6 | 1.8 |
| Other operating income | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.1 | 0.0 |
| Sales and marketing | -0.5 | -0.6 | 0.1 | -1.0 | -1.0 | 0.0 | -2.3 |
| Administration | -0.8 | -1.9 | 1.1 | -1.8 | -2.5 | 0.7 | -4.3 |
| Production and product development | -0.5 | -0.3 | -0.2 | -1.0 | -0.5 | -0.5 | -1.0 |
| Share of profit/loss in Joint Venture | 0.0 | 0.0 | |||||
| Operating profit/loss, continuing operations | -1.3 | -2.4 | 1.2 | -2.4 | -3.4 | 1.0 | -5.9 |
| Financial income | 0.1 | 0.0 | 0.0 | 0.2 | 0.0 | 0.2 | 0.2 |
| Financial expenses | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | 0.1 | -0.2 |
| Profit/loss before taxes | -1.2 | -2.5 | 1.2 | -2.2 | -3.5 | 1.3 | -5.9 |
| Income taxes | -0.1 | 0.0 | -0.1 | -0.1 | 0.0 | -0.1 | 0.0 |
| Income for the period, continuing operations | -1.3 | -2.4 | 1.2 | -2.3 | -3.5 | 1.2 | -5.9 |
| Income for the period, discontinued operations | 0.0 | 0.0 | 0.0 | 3.3 | 0.0 | 3.3 | 0.0 |
| Income for the period, total | -1.3 | -2.5 | 1.2 | 1.0 | -3.5 | 4.5 | -5.9 |
| Other comprehensive income after taxes | |||||||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | |||||||
| Available-for-sale financial assets | 0.1 | 0.0 | 0.1 | 0.2 | 0.0 | 0.2 | 0.1 |
| Translation differences | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods, total | 0.1 | 0.0 | 0.1 | 0.2 | 0.0 | 0.2 | 0.1 |
| Total comprehensive income for the period | -1.2 | -2.5 | 1.3 | 1.1 | -3.5 | 4.6 | -5.8 |
Earnings per share calculated from earnings attributable to equity holders of the parent company
| 1-6/2014 | 1-6/2013 | 1-12/2013 | |
| Undiluted earnings per share, continuing operations (EUR) | -0.17 | -0.25 | -0.43 |
| Undiluted earnings per share, discontinued operations (EUR) | 0.24 | ||
| Diluted earnings per share, discontinued operations (EUR) | 0.23 |
CONSOLIDATED BALANCE SHEET
| MEUR | 30 June 2014 | 30 June 2013 | 31 Dec. 2013 |
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 1.9 | 2.3 | 1.7 |
| Tangible assets | 0.5 | 0.6 | 0.5 |
| Share in Joint Venture | 0.9 | 1.0 | |
| Other financial long-term assets | 0.0 | 7,8* | 1.0 |
| Deferred tax assets | 0.0 | 0.0 | 0.0 |
| Total non-current assets | 3.3 | 10.7 | 4.2 |
| CURRENT ASSETS | |||
| Inventories | 0.8 | 0.7 | 0.6 |
| Trade and other receivables | 0.9 | 0.8 | 7.7 |
| Other financial short-term assets | 11.4 | 18.0 | 15.2 |
| Cash and cash equivalents | 0.6 | 0.3 | 0.5 |
| Total current assets | 13.7 | 19.8 | 24.1 |
| TOTAL ASSETS | 17.0 | 30.5 | 28.3 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY | |||
| Share capital | 2.4 | 2.3 | 2.3 |
| Invested unrestricted equity fund | 1.5 | 1.1 | 2.8 |
| Translation differences | 0.0 | 0.0 | 0.0 |
| Retained earnings | 10.5 | 21.0 | 17.3 |
| Total shareholders' equity | 14.4 | 24.5 | 22.5 |
| NON-CURRENT LIABILITIES | |||
| Deferred tax liabilities | 0.2 | 0.0 | 0.2 |
| Other liabilities | 0.0 | 0.0 | 0.0 |
| Total non-current liabilities | 0.2 | 0.0 | 0.2 |
| CURRENT LIABILITIES | |||
| Trade payables | 0.3 | 0.6 | 0.3 |
| Total interest-bearing liabilities | 0.3 | 0.4 | 0.4 |
| Tax liabilities | 0.1 | 0.0 | 0.1 |
| Other liabilities | 0.8 | 5.0 | 3.9 |
| Deferred gain | 0.9 | 0.0 | 1.0 |
| Total current liabilities | 2.4 | 6.0 | 5.6 |
| Total liabilities | 2.6 | 6.0 | 5.8 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 17.0 | 30.5 | 28.3 |
* Items include EUR 6.8 million in receivables from a business transaction completed in 2011; the funds were placed in an escrow account. The funds placed in the escrow account were released on 31 March 2014.
STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity on 30 June 2014
| MEUR | Share capital | Translation differences | Invested unrestricted equity fund | Retained earnings | Shareholders' equity |
|
Shareholders' equity 1 Jan 2014 |
2.3 | 0.0 | 2.8 | 17.3 | 22.5 |
| Distribution of dividend | -10.0 | -10.0 | |||
| Capital repayment | |||||
| Direct share issue | |||||
| Share-based payments | -1.6 | 2.0 | 0.4 | ||
| Exercise of share options | 0.0 | 0.4 | 0.4 | ||
| Total comprehensive income for the period | 0.0 | 1.1 | 1.1 | ||
| Shareholders' equity June 30, 2014 | 2.4 | 0.0 | 1.5 | 10.5 | 14.4 |
Consolidated statement of changes in equity on 30 June 2013
| MEUR | Share capital | Translation differences | Invested unrestricted equity fund | Retained earnings | Shareholders' equity |
| Shareholders' equity 1 Jan 2013 | 2.3 | 0.0 | 3.2 | 30.0 | 35.5 |
| Distribution of dividend | -6.8 | -6.8 | |||
| Capital repayment | -3.2 | -3.2 | |||
| Share issue to Euroclone | 1.1 | 1.1 | |||
| Share-based payments | |||||
| Exercise of share options | 1.3 | 1.3 | |||
| Total comprehensive income for the period | 0.0 | -3.5 | -3.5 | ||
| Shareholders' equity June 30, 2013 | 2.3 | 0.0 | 1.1 | 21.0 | 24.5 |
CASH FLOW STATEMENT
| MEUR | 1-6/2014 | 1-6/2013 | 1-12/2013 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit for the period | 1.0 | -3.5 | -5.9 |
| Adjustments | -2.9 | 1.4 | 1.9 |
| Change in working capital | -0.1 | -2.0 | -0.5 |
| Interest paid and payments on other operating financial expenses | 0.0 | 0.0 | -0.2 |
| Interest received | 0.2 | 0.0 | 0.3 |
| Realised exchange rate gains and losses | 0.0 | 0.0 | 0.0 |
| Income taxes paid | 0.0 | 0.0 | 0.1 |
| Net cash flow from operating activities | -1.9 | -2.0 | -4.4 |
| CASH FLOW FROM INVESTMENTS | |||
| Investments in tangible and intangible assets | -0.2 | -0.1 | -0.5 |
| Revenue from disposal of tangible and intangible assets | 0.0 | 0.0 | 0.0 |
| Capital gain from the sale of liquid handling business | 6.8 | ||
| Net investments in funds and deposits | 5.0 | 12.1 | 15.1 |
| Net cash flow from investments | 11.7 | 12.1 | 14.6 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Rights issue | 0.4 | 0.0 | 0.0 |
| Dividend payout | -10.0 | -6.8 | -6.8 |
| Repayment of capital | 0.0 | -3.2 | -3.2 |
| Repayment of loans | -0.1 | 0.0 | 0.0 |
| Net cash flow from financing activities | -9.7 | -10.0 | -10.0 |
| Increase (+)/decrease (-) in cash and cash equivalents | 0.1 | 0.1 | 0.2 |
| Cash and cash equivalents at the beginning of the period | 0.5 | 0.2 | 0.2 |
| Effect of exchange rates on cash and cash equivalents | 0.0 | 0.0 | 0.0 |
| Cash and cash equivalents at the end of the period | 0.6 | 0.3 | 0.5 |
RELATED PARTY TRANSACTIONS
There have been no noticeable changes in related party transactions during the reporting period.
Biohit Oyj B series shares subscribed with Stock Options I and II 2013
A total of 160,000 new Biohit Oyj B series shares were subscribed with stock options I 2013 and II 2013 during May 21 – June 2, 2014. These shares were entered into the trade register on June 12, 2014, as of which date the new shares established equal shareholder rights with the company's existing B series shares. Public trading began on NASDAQ OMX Helsinki as of June 13, 2014, together with the existing B series shares.
The share subscription price was EUR 2.2766 per share with stock options I 2013 and II 2013. The entire subscription price of EUR 364,256 was credited to the reserve for invested non-restricted equity, and the company share capital remained unchanged. The shares have no nominal value.
After the subscription the total number of Biohit Oyj shares rose to 13,985,593 shares (13,825,593) and the number of B series shares rose to 11,010,093 shares (10,850,093). The new shares correspond to a percentage of 1.1% of Biohit Oyj's total number of shares and 0.23% of the voting rights after registration.
The share subscription period for stock options I 2013A began on June 1, 2014, and all the available 100,000 shares were subscribed. The share subscription period for stock options II 2013 began on July 1, 2013, and will end on June 30, 2015. The option schemes are based on the Biohit Oyj board resolution of June 19, 2013, and the Annual General Meeting authorization of April 13, 2011. The terms and conditions of the option schemes, with additional information, are available on the Biohit Oyj website at www.biohithealthcare.com.
To exercise their stock options, holders must have paid the subscription price in accordance with the option scheme (EUR 3 or EUR 3 less the dividend depending of the timing). Holders exercising their stock options are liable to pay income tax for the stock option income.
COLLATERAL, CONTINGENT LIABILITIES, AND OTHER COMMITMENTS
| MEUR | 1-6/2014 | 1-6/2013 | 1-12/2013 |
| Collateral granted on behalf of the parent company | |||
| Corporate mortgages | 0.0 | 0.0 | 0.0 |
| Collateral granted on behalf of the subsidiaries | |||
| Guarantees | 0.0 | 0.0 | 0.0 |
| Other liabilities | |||
| Leasing commitments | |||
| Due for payment in less than one year | 0.1 | 0.1 | 0.1 |
| Due for payment in more than one year but less than five years | 0.0 | 0.1 | 0.1 |
| Due for payment in more than five years | 0.0 | 0.0 | 0.0 |
| Total | 0.1 | 0.2 | 0.1 |
| Other rental commitments | |||
| Due for payment in less than one year | 0.2 | 0.2 | 0.2 |
| Due for payment in more than one year but less than five years | 0.2 | 0.3 | 0.3 |
| Due for payment in more than five years | 0.0 | 0.0 | 0.0 |
| Total | 0.4 | 0.6 | 0.5 |
| Other liabilities, total | 0.5 | 0.8 | 0.6 |
| Commitments and contingencies, total | 0.5 | 0.8 | 0.6 |
NEXT FINANCIAL REPORT
The interim report for January–September 2014 (Q3) will be published on Thursday, 23 October 2014, at 9:30 am.
Helsinki, 20 August 2014
Biohit Oyj
Board of Directors
Additional information:
CEO Semi Korpela, Biohit Oyj
tel. +358 9 773 861
investor.relations@biohit.fi
www.biohithealthcare.com
Biohit Oyj in Brief
Biohit Oyj is a globally operating Finnish biotechnology company. Biohit’s mission ‘Innovating for Health’ means that we provide innovative products and services to promote research and early diagnostics. Biohit is headquartered in Helsinki and has subsidiaries in Italy and the UK. Biohit’s B series shares (BIOBV) are quoted on NASDAQ OMX Helsinki under Small cap/Healthcare. www.biohithealthcare.com