FINANCIAL STATEMENT BULLETIN OF BIOHIT OYJ, 1.1.2004 - 31.12.2004
BIOHIT OYJ STOCK EXCHANGE RELEASE 15.2.2005 AT 10:00
FINANCIAL STATEMENT BULLETIN OF BIOHIT OYJ, 1.1.2004 - 31.12.2004
Year 2004 in summary
· The net sales of the Biohit Group totalled MEUR 26.7 in 2004
(MEUR 26.3).
· Loss came to MEUR 0.6 (MEUR 0.7).
· The net cash flow provided by operating activities was MEUR
2.2 (MEUR 0.9).
· During the fiscal year the company launched the mechanical
multichannel mLINE pipettors.
Net sales
The net sales of the Biohit Group increased by 2% from the
previous years figures and totalled MEUR 26.7 (MEUR 26.3). During
the fourth quarter of 2004, net sales decreased 3.6% as compared
with the corresponding quarter in 2003, due to temporary delivery
problems with the new liquid handling products. The Groups net
sales for the fiscal year were generated primarily from sales and
maintenance services related to liquid handling business. The
growth in net sales was mostly generated from the liquid handling
business in the European market.
The proportion of Group net sales consisting of international
business was approx. 94%. The primary market area continued to be
Europe, which accounted for approx. 63% of the Groups net sales.
The decrease of the euro / US dollar exchange rate slowed the
growth of net sales.
Result
The loss of the Group for 2004 was MEUR 0.6 (MEUR -0.7). The
operating loss in 2004 amounted to MEUR 0.2 (MEUR -0.2). The
operating profit before goodwill amortisation was MEUR 0.1 (MEUR
0.2), of which liquid handling business accounted for MEUR 2.1 and
diagnostics business accounted for MEUR -2.0.
In the course of the fiscal year under review, Biohit split its
international sales and marketing for liquid handling and
diagnostic products into separate divisions. The Group has also
intensified product sales and marketing.
The group accounting principle for development costs was changed
as of 1 January 2004 to comply with IFRS 38. Development costs
amounting to TEUR 187 were capitalised according to this principle
during the fiscal year, which improves the operating margin and
operating profit accordingly.
Income tax (MEUR 0.3) has been accounted for on the basis of the
result for the fiscal year. However, deferred tax assets relating
to taxable losses have not been addressed in this manner. Of the
income tax set against income on the income statement, MEUR 0.2
comes from the decrease in deferred tax assets relating to the
dissolution loss taken on Locus genex Oy.
Deferred taxes as of 31.12.04 have been calculated based on the
26% tax rate in effect from 2005. The change of the tax rate
increased the tax for the fiscal year by MEUR 0.1.
Net financial expenses totalled MEUR 0.1 (MEUR 0.2).
Earnings per share were EUR -0.05 (EUR -0.06). Shareholders´
equity per share totalled EUR 1.04 (EUR 1.08).
Balance sheet
Total assets were MEUR 21.2 (MEUR 21.9). The equity ratio was
63.7% on 31 December 2004 (64.7%). In accordance with a decision
made by the Annual General Meeting on 15 April 2004, the Share
Premium Fund has covered accumulated losses of MEUR 2.3.
Liquidity
The net cash flow provided by operating activities was MEUR 2.2
(MEUR 0.9). The growth resulted from the favourable development of
working capital. At the end of the fiscal year, the liquid assets
of the Group totalled MEUR 1.3 (MEUR 1.1).
Investments
Gross investments totalled MEUR 2.2 (MEUR 1.2). The majority of
the investments consisted of machinery and equipment acquired for
the Kajaani plant for the automation of production of liquid
handling products, injection moulding tools used in the
manufacture of liquid handling devices, the capitalisation of
development costs, and the acquisition of business premises for
the French subsidiary Biohit SAS.
The Groups research and development expenditures totalled MEUR
1.3 (MEUR 1.4) - i.e., 4.9% (5.5%) of net sales, of which
development costs amounting to MEUR 0.2 (MEUR 0,0) have been
capitalised.
Personnel
The average number of personnel in 2004 was 291 (298), with 164
(174) of the personnel employed by the parent company and 126
(124) by the subsidiaries.
Main events of the fiscal year
Liquid handling business area
Biohits liquid handling business consists of mechanical (the
mLINE and proLINE range) and electronic (the eLINE, proLINE, ePET,
rLINE-Midi, and XL range) liquid dispensers as well as disposable
tips. In addition, the company offers services related to
maintenance, calibration, and training concerning liquid handling
devices.
During the fiscal year, the company launched the mechanical
multichannel mLINE pipettors. The 8- and 12-channel models
launched cover a volume range of 0.5-300 microlitres. These models
complemented the previously launched single-channel mLINE range.
In the development work for the new models, Biohit paid special
attention to improve pipetting accuracy and the ergonomic aspects
of pipettor design. In addition, Biohit launched a new single-
channel pipettor based on the mLINE product range, which is
intended especially for applications in which the timing of
pipetting is of crucial importance - e.g., in the measurement of
clotting factors in blood.
In 2004, growth in net sales of disposable tips continued, and was
particularly strong in Western Europe and Asia. The fiscal year
also saw Biohit launch a new tip design for liquid handling
products, which covers a volume range of 50-1,200 microlitres.
The automation of the Kajaani plant continued. New robot-equipped
production lines and the packaging automation system for
disposable tips were brought into use.
In the area of liquid handling, Biohit concluded the following
agreements, for example, in 2004:
- A private-label agreement with Fisher Scientific UK Ltd. for
deliveries of electronic pipetting controllers (MidiPlus) intended
for large volume ranges in Great Britain and an agreement with
Fisher Scientific Company LLC for tip deliveries in North America;
the latter is an extension to the private-label agreement
concluded in 2003 for deliveries of eLINE pipettors in North
America. Said companies belong to the Fisher Scientific
International Group, which is one of the worlds leading sales and
distribution organisations for laboratory equipment. Biohit
earlier concluded agreements with the Fisher Group for sale of all
Biohit liquid handling products in North and South America as well
as in Asia.
During the fiscal year, Biohit has started cooperation with the US
subsidiary of the bioMérieux Group concerning deliveries of
mechanical pipettors. The private-label products manufactured by
Biohit will be used in connection with diagnostic applications
produced by bioMérieux.
In 2004, in the area of liquid handling (relating to, e.g., the
suction device and tips, and also detachment of the tips), Biohit
was awarded the following patents: European patent EP 1085944,
Japanese patents 3544905 and 3544906, Russian patents 2225758 and
2234371, and American patent US 6,787,367.
Diagnostics business area
In the business area of diagnostics, the focus of Biohit is to
concentrate on the research, development, production, and
marketing of products enabling screening, prevention, and
diagnosis of diseases related to the gastrointestinal tract. The
companys range of diagnostic products includes the blood sample-
based GastroPanel (Pepsinogen-I, Pepsinogen-II, Gastrin-17, and
Helicobacter pylori IgG antibodies tests) for diagnosing the cause
of upper abdominal pain and the biopsy specimen quick tests for
diagnosis of lactose intolerance and Helicobacter pylori
infection.
In 2004, Biohit launched new diagnostic products and product
improvements. These strengthen the possibilities for co-operation
with major diagnostics companies and service laboratory chains.
Moreover, at the beginning of the fiscal year Biohit launched
quick tests for the diagnosis of H. pylori infection and lactose
intolerance on the basis of a biopsy sample. So far, a fast and
reliable method for the detection of lactose intolerance had not
been available in the market. About 17% of the adult population of
Finland, and up to 90% of people in some countries, suffer from
lactose intolerance, a deficiency in or lack of the lactase enzyme
in the small intestine. During the fiscal year, Biohits lactose
intolerance test was awarded patents in Russia (2223502) and China
(ZL00806948.4). Previously, patents had been awarded for the test
in Finland and several other European countries.
In the fiscal year Biohit launched the stabiliser for the Gastrin-
17 test kit of the GastroPanel. The stabiliser improves the
preservation of the sample and facilitates its delivery. The
stabiliser has been developed especially for the needs of service
laboratories.
During the fourth quarter of the fiscal year, Biohit launched a
new version of the Gastrin-17 test kit, related to GastroPanel
testing. The test enables easier and faster handling of patient
samples simultaneously with use of the other GastroPanel kits.
Biohit produced a new version of the GastroSoft software for the
interpretation of the GastroPanel results. The software was
developed especially for the needs of clinical laboratories and
research institutes. The new GastroSoft software enables better
collection and maintenance of patient information, and
interpretation of the results. When using the GastroPanel in
conjunction with the GastroSoft software, a doctor can more easily
and accurately determine the reasons for a patients dyspepsia and
the state of the stomach mucosa. Also, the software combination
facilitates treatment planning, and it can be used in the follow-
up to treatment.
GastroPanel examinations and results revealed by GastroSoft
software:
1. Provide diagnosing of
- Functional and organic dyspepsia. When GastroPanel estimates
that the mucous membrane of the stomach is healthy, the reason for
gastric discomfort is often functional dyspepsia or some other
disease
- Helicobacter pylori infection
- Atrophic gastritis (damage in stomachs mucous membrane and
serious functional disorder) and probabilities of different
conditions in the mucosa of the corpus and antrum of the stomach
(normal, gastritis, atrophic gastritis).
2. Informs about the risk of
- Gastric cancer
- Peptic ulcer
- Esophageal reflux disease and Barretts esophagus.
3. If needed give recommendations for
- Gastroscopy and biopsy specimen examination
- Treatment of Helicobacter pylori infection
- Measurement of the blood concentrations of B12 vitamin and
homocysteine GastroPanel follow-up examination (for emergence of
atrophic gastritis and follow-up of healing of Helicobacter pylori
infection and atrophic gastritis).
Development of the distribution network for diagnostic products
has had a positive start. Over the next fiscal year, Biohit will
continue working on negotiations concerning co-operation
agreements in its primary market areas - Europe and North America,
also with a special focus on India and China in the Asian market.
Approvals from the relevant authorities represent an element that
is crucial in Biohits efforts to cultivate the market potential
related to diagnostics. During the fourth quarter of 2004, the
blood sample-based Helicobacter pylori IgG antibodies test of the
GastroPanel was granted approval by the US Food and Drug
Administration (FDA). This enables Biohit to sell the test also
for clinical use, in addition to research applications, in the US.
The test kits for the GastroPanel are still being evaluated by the
US FDA and by Chinas State Food and Drug Administration (SFDA).
The fiscal year saw Biohit receive Chinese patent 00812226.1,
Russian patent 2224258, and US patent 6,696,262 related to the
GastroPanel. Previously, European and other patents were awarded
for inventions related to GastroPanel tests.
At the end of the reporting period, 34 evaluations were in
progress, of which 21 were being conducted in Europe, seven in
Asia, two in North America, two in Africa, one in South America,
and one in the Near East. The number of patients participating in
these ongoing studies totals approximately 34,300. Some of the
results of the evaluations have been published in international
scientific journals and conference abstracts. A list of the
published material on these is available in the Literature
section at the companys Web site, www.biohit.com.
Equity turnover and price development
In 2004, Biohits B-share turnover on the Helsinki Exchanges was
EUR 2,695,304, or 1,131,410 in pieces. The highest share price in
2004 was EUR 3.09, the lowest EUR 1.75, and the average price EUR
2.38. The closing price at the end of 2004 was EUR 2.06. The
market capitalisation value of the B shares totalled EUR
18,667,982. Biohit has been listed on the Helsinki Exchanges NM
list since 1999.
Adoption of IFRS
Biohit Group will adopt IFRS reporting as of 2005. A separate
announcement on the transition to IFRS is to be published on 14
March 2005.
Administration
The members of the Board of Directors of Biohit Oyj during the
financial year were Professor Reijo Luostarinen as chairman, and
members Docent Arto Alanko; Professor Hannu Seristö (until 5
August 2004); Peter Tchernych, M.Sc. (Econ.), LLM (since 15 April
2004); Professor Osmo Suovaniemi, MD, PhD; and Professor Mårten
Wikström. Osmo Suovaniemi acted as the managing director of Biohit
Oyj.
PricewaterhouseCoopers Oy acted as auditors, with Hannele
Selesvuo, Authorised Public Accountant, serving as the responsible
auditor.
Prospects for 2005
In the area of liquid handling, Biohit expects to respond more
effectively to the market demand, on account of its more
comprehensive product range. According to Biohit estimates, there
are not expected to be any changes in the liquid handling market
that could have a negative impact on the development of the
companys net sales.
The market penetration of diagnostic products has been slower than
was anticipated. However, Biohit expects that intensification of
sales, increased co-operation with distributors, several
evaluations, and approvals received from authorities will lead to
increased net sales in 2005.
On the basis of the factors mentioned above, the net sales of the
Biohit Group are expected to grow and profit to improve in 2005.
This outlook is supported by the reorganisation of the
international sales and marketing divisions for liquid handling
and diagnostic products as well as the new enterprise resource
planning system introduced in the parent company at the beginning
of 2005.
Group Income Statement
1-12 1-12
2004 Change Change 2003
MEUR MEUR % MEUR
Net sales 26.7 0.4 2 26.3
Operating expenses -25.1 0.6 2 -24.5
EBITDA 1.6 -0.2 -9 1.8
Depreciation without
goodwill amortisation -1.5 0.1 5 -1.6
Operating profit before
goodwill amortisation 0.1 -0.1 -32 0.2
Goodwill amortisation -0.3 0.1 19 -0.4
Operating profit/loss -0.2 0.0 -19 -0.2
Financial expenses (net) -0.1 0.1 66 -0.2
Profit/loss before
extraordinary items -0.3 0.2 44 -0.5
Profit/loss before taxes -0.3 0.2 44 -0.5
Profit/loss for the period -0.6 0.1 18 -0.7
Quarterly net sales and operating profit/loss before goodwill
amortisation
2004 2003
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net sales 7.1 6.1 6.9 6.6 7.5 6.1 6.3 6.4
Operating profit
before goodwill
amortisation -0.3 0.0 0.2 0.2 0.1 0.2 -0.1 0.0
Profit/loss for
the period -0.4 -0.3 0.1 0.0 -0.1 -0.1 -0.2 -0.3
Group Balance Sheet
31.12.2004 31.12.2003
Assets MEUR % MEUR %
Non-current assets
Intangible assets 3.5 17 3.7 17
Tangible assets 6.6 31 6.2 28
Current assets
Inventories 3.6 17 4.1 19
Receivables 5,4 25 5.7 26
Deferred tax
assets 0.8 4 1.1 5
Cash and cash
equivalents 1.3 6 1.1 5
Total assets 21.2 100 21.9 100
Liabilities and
shareholders
equity
Shareholders
equity
Share capital 2.2 10 2.2 10
Share premium 13.1 62 15.4 70
Accumulated
losses -1,8 -9 -3.6 -16
Subordinated
loans 1.2 6 1.2 6
Minority interest 0.0 0 0.1 0
Long-term
liabilities 2.5 12 2.3 11
Short-term
liabilities 4.0 19 4.3 19
Total assets 21.2 100 21.9 100
Cash Flow Statement
1-12 1-12
2004 2003
Cash flow from operating
activities:
Profit/loss before
extraordinary items -0.3 -0.4
Adjustments 1.8 2.2
Change in net working
capital 0.8 -0.6
Interest and other
financial items paid -0.2 -0.4
Interest received 0.1 0.2
Income tax paid 0.0 -0.1
Net cash flow from
operating activities 2.2 0.9
Net cash flow from
investment activities:
Investments in tangible and
intangible assets -2.1 -1.1
Subsidiary shares acquired -0.1 0.0
Proceeds from sales of
other investments 0.0 0.1
Net cash flow from
investment activities -2.2 -1.0
Net cash flow from
financing activities:
Proceeds from share issue 0.0 0.0
Increase in long-term loans 0.8 0.6
Repayment of long-term
loans -0.6 -0.8
Net cash flow from
financing activities 0.2 -0.2
Net increase (+) / decrease
(-) in cash and cash
equivalents 0.2 -0.3
Cash and cash equivalents
at the beginning of the
period 1.1 1.4
Cash and cash equivalents
at the end of the period 1.3 1.1
1-12 Change Change 1-12
2004 (%) 2003
Investments, gross
MEUR 2.2 1.0 73 1.2
% of net sales 7.7 4.5
Average number of
employees 291 -7 -2 298
Mortgages and assets pledged for liabilities and leasing
commitments
31.12.2004 31.12.2003
MEUR MEUR
Contingencies and
pledged assets
Loans from financial
institutions 2.4 2.0
Corporate mortgages 1.6 3.4
Mortgages on real estate 1.4 1.5
Other long-term liabilities 0.6 0.8
Mortgages on real estate 0.8 0.8
Leasing commitments 4.4 2.8
31.12.2004 31.12.2003
Ratios
Equity ratio, in % 63.7 64.7
Earnings per share, in EUR -0.05 -0.06
Shareholders equity per
share, in EUR 1.04 1.08
Average number of shares 12,937,627 12,937,627
Number of shares at the
end of the period 12,937,627 12,937,627
Interest on subordinated loans
The unrecorded interest accrued on capital loans totalled TEUR 598
on 31 December 2004 and TEUR 540 on 31 December 2003.
Derivative contracts
The Group does not have any off-balance-sheet financial
instruments.
Proposal for the distribution of profit
The Group does not have distributable earnings. The Board of
Directors proposes that no dividends be paid.
The figures in the Financial Statement Bulletin are unaudited.
Contrary to previous announcement, the Annual General Meeting of
Biohit will take place on 21 April 2005.
Helsinki, 15 February 2005
Board of Directors of Biohit Oyj
Osmo Suovaniemi
President and CEO
Additional information: Osmo Suovaniemi, President and CEO
Tel. +358 9 773 861, direct: 09 773 86
250, GSM: +358 40 745 5605, email:
osmo.suovaniemi@biohit.com
Web site: http://www.biohit.com/
Distribution: Helsinki Exchanges
Financial Supervisory Authority
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