INTERIM REPORT JANUARY 1 - JUNE 30, 1999
BIOHIT PLC. STOCK EXCHANGE RELEASE Aug. 16, 1999 at 9:00 a.m. 1 (5)
INTERIM REPORT JANUARY 1 - JUNE 30, 1999
· Net sales increased by 25% from FIM 49.5 million to FIM 61.7
million
· Profit for the period increased by 108 % from FIM 2.4 million to
FIM 5.0 million
Net Sales
The net sales of the Biohit Group increased in the reporting period by
25%, i.e. FIM 12.2 million to FIM 61.7 million. Foreign sales
accounted for 97% (96% in 1998) of total net sales. The growth in
sales met the targets set and was generated primarily by an increase
in the sales of electronic liquid handling equipment. Locus genex Oy
and Biohit Systems Inc., which became Group companies on December 30,
1998, had an insignificant effect on the net sales of the reporting
period.
The order backlog totalled to FIM 6.2 million on June 30, 1999 (FIM
11.5 million on December 31, 1998). The exceptionally high order
backlog on December 31, 1998 was due to a single significant supply
agreement.
Profit
Due to the growth in net sales, the operating profit of the reporting
period increased by FIM 2.8 million (104%) to FIM 5.5 million. The
operating profits of 1998 and 1999 are not fully comparable as the
operating profit of 1999 is burdened with the amortization of FIM 2.7
million on the goodwill associated with Locus genex Oy and Biohit
Systems Inc, which have been part of the Group since December 30,
1998, and with the operating losses of these companies during the
reporting period totalling to FIM 1.6 million. Without the goodwill
amortization the operating profit would have totalled to FIM 8.2
million, i.e. FIM 5.5 million (204%) higher than in the preceding
year.
The profit before extraordinary items of the reporting period was FIM
5.0 million (FIM 1.4 million).
The valuation method of inventories was changed in 1998 so that, in
addition to the variable costs, also their share of fixed
manufacturing and purchasing costs is included in their cost value.
The result-improving effect of this change over the preceding fiscal
years (FIM 1.0 million) was shown in 1998 under extraordinary items.
Financial Situation
The liquidity of Biohit is good. The directed share issue, which was
carried out in connection with the listing of Biohit Plc. on the
Helsinki Exchanges generated, after netting expenses directly related
2 (5)
with the listing and the share issue, FIM 49.9 million in liquid
assets.
The gearing ratio increased from 38.8% at the end of the preceding
year to 61.1%.
Share Issue and the Listing of the Company
The Board of Directors of Biohit Plc. decided on May 12, 1999 to
investigate the preconditions of seeking public listing for the B-
shares of the Company. As a result of the investigation the
Extraordinary Shareholders' meeting decided on June 13, 1999 to carry
out a directed issue in which 2,000,000 new shares with a nominal
value of EUR 0.17 were offered for subscription to Finnish and
international institutional investors and the Finnish public for a
subscription price of EUR 4.5. The share issue was discontinued on
June 14, 1999 due to oversubscription. The shares subscribed were
allocated so that the institutional investors received 750,000 shares
and the Finnish public 1,250,000 shares.
As a result of demand for the shares Biohit submitted an application
for listing to the Helsinki Exchanges. After the approval of the
application, trading of the B-shares of the Company commenced on the
New Market -list of the Helsinki Exchanges on June 18, 1999.
As a result of the share issue the share capital of the Company
increased by EUR 340,000 (FIM 2 million) and the share premium fund by
FIM 51.5 million. The expenses related directly with the listing
process and the share issue have been deducted from the share premium
fund and, thus, do not have an impact on the result of the reporting
period.
Investments
No significant investments were made in the reporting period. The
investments made pertain primarily to tools and machinery of
production and to information systems.
Research and Development
During the reporting period the Company launched three new products to
complement its existing liquid handling product range. During the last
six months of the fiscal year three additional complementary products
will be launched, and the Company will also begin the development of
numerous new OEM -liquid handling products, which will complement the
diagnostic systems of other companies. In addition, the Company is
currently developing new generations of mechanical and electronic
pipettors for new market segments.
In April, 1999 the Company was awarded a U.S. -patent (U.S. 5,895,838)
for its liquid handling device which automatically corrects the
mistakes produced by the temperature variation of the liquid pipetted.
3 (5)
Two Finnish patents (FI 98604, FI 101864) have also been awarded for
the invention, and patent applications have been filed in numerous
other countries. The Company believes that this invention will
strengthen its position on the liquid handling markets in the future.
The development work and testing of the test panel for screening the
risk of gastric cancer and peptic ulcer from blood samples proceed in
accordance with the targets set. Moreover, the Company has filed
numerous patent applications for the test kits, which are related with
the said test panel. Also, the design and development work of the
instrument products, which form together with the liquid handling and
diagnostic product ranges complete analyzer systems, proceed in
accordance with the targets set.
Prospects for 1999
The growth in the sales of the Group is expected to continue during
the last six months of the fiscal year in comparison with the previous
year, and the net profit for 1999 is anticipated to grow compared with
the previous year.
Income Statement
1-6 1999 1-6 1998 Change Change 1-12 1998
MFIM MEUR MFIM MFIM % MFIM
Net sales 61.7 10.4 49.5 12.2 25 100.4
Operating expenses 56.2 9.5 46.8 9.4 20 92.2
Operating profit 5.5 0.9 2.7 2.8 104 8.2
Financial expenses
(net) 0.5 0.1 1.3 -0.8 -62 5.5
Profit before
extraordinary items 5.0 0.8 1.4 3.6 257 2.7
Extraordinary items 0.0 0.0 1.0 -1.0 -100 4.1
Profit before taxes 5.0 0.8 2.4 2.6 108 6.8
Profit for the period 5.0 0.8 2.4 2.6 108 6.5
The low income taxes shown in the Income Statement are due to loss
carry forwards, with the related deferred tax asset not having been
taken into account in the financial statements.
4 (5)
Balance Sheet
30.6.1999 30.6.1998 31.12.1998
Assets MFIM MEUR % MFIM % MFIM %
Fixed assets 54.4 9.2 34 25.6 32 57.5 53
Inventories and
financial assets
Inventories 15.0 2.5 9 11.7 15 14.6 13
Receivables 31.3 5.3 20 37.8 48 30.8 28
Liquid funds 59.0 9.9 37 3.7 5 6.7 6
Total assets 159.7 26.9 100 78.8 100 109.6 100
Liabilities and
shareholders'
equity
Shareholders'
equity 106.1 17.8 66 5.5 7 50.5 46
Minority interest 0.3 0.0 0 0.4 0 0.3 0
Provisions 2.7 0.5 2 2.1 3 2.7 3
Long-term
liabilities 25.3 4.3 16 38.5 49 28.8 26
Short-term
liabilities 25.3 4.3 16 32.3 41 27.3 25
Total liabilities
and shareholders'
equity 159.7 26.9 100 78.8 100 109.6 100
1-6/99 1-6/98 Change Change-% 1-12/98
Investments,
gross
Fixed assets MFIM 3.1 1.7 1.4 82 8.3
Staff, average 181 159 22 - 164
5 (5)
30.6.1999 30.6.1998 31.12.1998
MFIM MFIM MFIM
Order backlog 6.2 8.0 11.5
Contingent liabilities and
pledges given
Corporate mortgages 20.1 20.1 20.1
Pledges given 1.5 1.6 1.5
Total 21.6 21.7 21.6
Leasing commitments 18.6 14.5 20.3
Ratios per share
Earnings per share 0.48 0.22 0.38
Shareholders' equity
per share 7.93 -0.26 4.11
Derivative Contracts
The Group has no off balance sheet financial instruments.
Interest on Capital Loans
The unrecorded interest accrued on capital loans was FIM 3.0 million
on June 30, 1999 and FIM 2.8 million on December 31, 1998. In the
light of the development of the Group's result it is likely that FIM
1.5 million of the interest accrued will be recorded as expense during
fiscal year 1999.
The figures of the Interim Report are unaudited.
Helsinki, August 16, 1999
Board of Directors of Biohit Plc.
Biohit Plc.
Helena Hentola
Information Management
Further information: Osmo Suovaniemi, President and CEO, Tel: +358-
9-773 861, direct: +358-9-773 86 250
Terttu Ollikainen, Accounting & Finance, Tel:
+358-9-773 861, direct: +358-9-773 86 226
http://www.biohit.com
Distribution: Helsinki Exchanges
The Financial Supervision Authority
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