INTERIM REPORT OF BIOHIT GROUP 1 JANUARY TO 31 MARCH 2006
BIOHIT OYJ STOCK EXCHANGE RELEASE 5 MAY 2006 10:00 AM
INTERIM REPORT OF BIOHIT GROUP 1 JANUARY TO 31 MARCH 2006
The Biohit Group had total net sales of EUR 7.6 million during the
reporting period (EUR 6.3 million in 1Q/2005). The operating
result for the reporting period came to EUR 0.0 million (operating
result EUR -0.6 million). The loss for the reporting period was
EUR 0.2 million (loss EUR 0.6 million). During the reporting
period, Biohit established a company for production operations in
China. The Groups result improved as a consequence of positive
trends in net sales.
Net sales
The Biohit Group net sales increased 20.6 % compared with the
corresponding period in 2005 and totalled EUR 7.6 million (EUR 6.3
million). Of the Groups net sales 95 % were generated primarily
from the sale of liquid handling products and maintenance services
for liquid dispensers. The liquid handling business net sales were
EUR 7.2 million (EUR 6.0 million), the net sales for the
diagnostics business being EUR 0.4 million (EUR 0.3 million).
Result
The operating profit was EUR 0.0 million (operating loss EUR 0.6
million). The loss for the reporting period was EUR 0.2 million
(EUR 0.6 million).
The operating profit of the liquid handling business was EUR 0.6
million (operating profit EUR 0.0 million), the operating loss of
the diagnostics business being EUR 0.6 million (EUR 0.7 million).
Balance sheet
The balance sheet total was EUR 28.3 million (EUR 23.6 million)
and the equity ratio was 49.7 % (58.1 %) on 31 March 2006. The
balance sheet total was increased and the equity ratio decreased
by the issuance of a EUR 4.05 million convertible bond in November
2005.
Liquidity
During the reporting period, the operating activities had a net
cash flow of EUR 0.2 million (EUR -0.3 million). At the end of the
reporting period, the liquid assets of the Group totalled EUR 1.0
million (EUR 0.9 million).
Investments
Gross investments in the reporting period totalled EUR 0.4 million
(EUR 0.4 million). The investments consisted mainly of injection
moulding tools used in the manufacture of liquid handling products
at the Kajaani and Helsinki plants.
Personnel
The average number of personnel in the reporting period was 290
(293), with 157 (157) persons being employed by the parent company
and 133 (136) by the subsidiaries.
Main events of the reporting period
Liquid handling business area
Biohits liquid handling business includes mechanical and
electronic liquid dispensers as well as disposable tips. In
addition, the company offers services related to the maintenance
and calibration of liquid handling products as well as training
services on these products. The companys liquid handling products
are combined with diagnostic products, instruments and related
software, forming comprehensive analysing systems for research and
clinical diagnostics.
During the reporting period, Biohits liquid handling business was
granted the international ISO 13485 certificate issued by Det
Norske Veritas. In accordance with the European Union IVD
Directive (in vitro diagnostics), manufacturers of medical
equipment must comply with ISO 13485 quality standards. Receiving
this certificate is especially important for Biohits OEM
business, in which the majority of its customer base uses Biohits
liquid handling products in diagnostic test and analysis systems.
Biohits diagnostics business was granted the ISO 13485
certificate in 2003. Since then, the company has complied with the
same quality system principles in the manufacture of its liquid
handling products.
During the reporting period, Biohit began co-operation with a
North-American company concerning the delivery of robotic
pipettors used in instrumentation.
Additionally, the company has brought to market a new mechanical
single-channel mLINE pipettor for small volumes (0.1-3 µl) during
the reporting period.
Diagnostics
In the diagnostics business, Biohit focuses on the research,
development, production, and marketing of products for the
screening, prevention, and diagnosis of diseases of the
gastrointestinal tract. The companys diagnostic products include
the GastroPanel examination performed on a blood sample
(biomarkers: Pepsinogen-I, Pepsinogen-II, Gastrin-17, and
Helicobacter pylori antibodies), for the diagnosis of upper
abdominal complaints (dyspepsia), H. pylori infection, atrophic
gastritis and associated risks (gastric cancer, vitamin B12
deficiency and peptic ulcer disease). In addition, GastroPanel
reveals the risk of gastroesophageal reflux disease. The company
also provides biopsy specimen quick tests for the diagnosis of
lactose intolerance and H. pylori infection. The companys
diagnostic products are combined with pipettors, globally used
analysis instruments featuring vertical photometry technology and
related software to offer comprehensive analysis systems for
research and clinical diagnostics.
During the reporting period Biohit has made several agreements
regarding sales and marketing of diagnostics products with
distributors in various countries: InGen in France, BioDiagnostics
in Greece and Cetus in Iceland. Additionally, after the end of the
reporting period, Biohit entered into contract with Peramedical in
Turkey concerning distribution of Biohits diagnostic products.
After the end of the reporting period GastroPanel was cleared for
marketing and distribution in Ukraine.
Operations in China
During the reporting period, Biohit established a company for
production operations in China (Suzhou).
Equity Turnover and Price Development
During the reporting period, the total turnover of Biohits B-
shares on the Helsinki Exchange NM list amounted to EUR 1,039,266,
and the number of shares traded was 458,232. The highest share
price was EUR 2.42 and the lowest EUR 2.12, the average price
being EUR 2.27. The closing price at the end of the reporting
period was EUR 2.30. On 31 March 2006, the market capitalisation
value for the B shares totalled EUR 20,843 thousand.
Decisions of the Annual General Meeting
The Annual General Meeting (AGM) of Biohit held on 20 April 2006
(stock exchange release published on 21 April 2006), decided in
accordance with the proposal by the Board of Directors that no
dividends will be paid for the financial year 2005 and that the
loss of EUR 612,688.29 will be transferred to the retained profit
and loss account. Additionally, the AGM decided upon a decrease of
the share premium fund with a total of EUR 12,842,314.81. EUR
612,688.29 will be used for the direct covering of a loss shown on
an adopted balance sheet, and EUR 12,229,626.52 will be
transferred to a fund included in the companys non-restricted
equity.
Furthermore, the AGM decided that the number of the members of the
Board of Directors is six. The AGM appointed Professor Reijo
Luostarinen, Professor Osmo Suovaniemi, M.Sc. (Econ.) and LLM
Peter Tchernych, Academy Professor Mårten Wikström, PhD Tero J.
Kauppinen and PhD Peter B. Coggins as members of the Board.
The AGM appointed authorized public accountant
PricewaterhouseCoopers Oy as the auditor.
Outlook for 2006
In its financial statements published on 17 February 2006, the
company estimated that growth in total net sales for the Group
will be favourable in 2006 and that the result before taxes will
be better than in the previous year. Trends during the reporting
period support the companys previous outlook and the company sees
no reason to change the estimates. Both the increase in net sales
for the first half of the year and the improvement in the result
are also expected to continue into the second half of the year.
This interim report has been prepared in accordance with IFRS
(International Financial Reporting Standards), using IFRS
recognition and measurement principles. This interim report does
not comply with all of the requirements of IAS 34 (Interim
Financial Reporting).
All the figures in the financial statements have been rounded up
or down, due to which the sums of figures may deviate from the sum
total presented.
Consolidated income statement
1-3 1-3 1-12
2006 2005 Change Change 2005
MEUR MEUR MEUR % MEUR
Net sales 7.6 6.3 1.3 21 28.7
Other operating income 0.0 0.0 0.1
Change in inventories of
finished goods and work in
progress 0.2 0.3 -0.1 -31 0.4
Raw materials and consumables -1.5 -1.3 0.2 7 -5.1
External services -0.3 -0.2 0.1 43 -1.0
Employee benefit expenses -3.2 -2.9 0.2 7 -11.6
Depreciation -0.4 -0.4 0.0 8 -1.7
Other operating expenses -2.5 -2.4 0.1 7 -9.8
Operating profit / loss 0.0 -0.6 0.6 95 0.0
Financial expenses (net) -0.1 0.0 0.1 1004 -0.2
Profit / loss before tax -0.1 -0.6 0.5 77 -0.2
Income taxes -0.1 0.0 0.1 2227 0.0
Profit / loss for the period -0.2 -0.6 0.4 64 -0.2
Group net sales by business segment
1-3 1-3
2006 2005 Change Change
MEUR MEUR MEUR %
Liquid handling 7.2 6.0 1.2 19
Diagnostics 0.4 0.3 0.1 51
Group operating result by business segment
1-3 1-3
2006 2005 Change Change
MEUR MEUR MEUR %
Liquid handling 0.6 0.0 0.6 8331
Diagnostics -0.6 -0.7 0.1 16
Consolidated balance sheet
31.3.2006 31.3.2005 31.12.2005
MEUR % MEUR % MEUR %
Assets
Non-current assets
Tangible assets 6.7 24 6.7 28 6.7 24
Goodwill 2.6 9 2.6 11 2.6 9
Other intangible
assets 1.5 6 1.3 6 1.6 6
Deferred tax assets 2.0 8 1.9 8 2.1 8
Total non-current
assets 12.9 47 12.5 53 13.0 47
Current assets
Inventories 5.0 16 4.0 17 4.6 16
Trade and other
receivables 8.9 31 6.2 26 8.5 31
Cash and cash
equivalents 1.4 6 0.9 4 1.8 6
Total current
assets 15.3 53 11.0 47 14.9 53
Total assets 28.3 100 23.6 100 27.9 100
Equity and
liabilities
Share capital 2.2 8 2.2 9 2.2 8
Share premium fund 13.0 47 13.1 56 13.0 47
Retained earnings -1.2 -4 -1.7 -7 -0.9 -4
Total equity 14.0 51 13.6 58 14.3 51
Non-current
liabilities
Interest-bearing
liabilities 7.6 28 4.0 17 7.7 28
Deferred tax
liabilities 0.1 0.1 0.1 0
Pension obligations 0.1 0.1 0.1 0
Other liabilities 0.7 3 0.6 3 0.6 3
Total non-current
liabilities 8.4 31 4.8 20 8.5 31
Current liabilities
Trade and other
payables 5.1 15 4.1 17 4.2 15
Current interest-
bearing liabilities 0.8 3 1.1 5 0.9 3
Total current
liabilities 5.9 18 5.2 22 5.1 18
Total liabilities 14.3 49 9.9 42 13.6 49
Total equity and
liabilities 28.3 100 23.6 100 27.9 100
Consolidated cash flow statement
1-3/2006 1-3/2005 1-12/2005
MEUR MEUR MEUR
Cash flow from operating
activities:
Profit / loss before tax -0.1 -0.6 -0.2
Adjustments 0.5 0.6 1.9
Change in working capital -0.1 -0.3 -0.8
Interest and other
financial items paid -0.1 -0.1 -0.3
Interest received 0.1 0.1
Income taxes paid -0.1
Net cash flow from
operating activities 0.2 -0.3 0.6
Cash flow from investment
activities:
Investments in tangible and
intangible assets -0.3 -0.4 -1.7
Investments in funds and
deposits -3.4
Capital gain from
investments in funds and
deposits 0.6
Net cash flow from
investment activities 0.3 -0.4 -5.1
Cash flow from financing
activities:
Proceeds from loans 0.5 4.8
Repayment of loans -0.2 -0.2 -1.0
Net cash flow from
financing activities -0.2 0.3 3.8
Increase (+) / decrease (-)
in cash and cash
equivalents 0.3 -0.4 -0.6
Cash and cash equivalents
at beginning of period 0.7 1.3 1.3
Cash and cash equivalents
at end of period 1.0 0.9 0.7
Consolidated statement of changes in equity on 31 March 2006
MEUR Share Share Trans- Earnings Equity
capital premium lation
fund diff.
Equity 1 Jan 2006 2.2 13.0 0.2 -1.1 14.3
Translation differences -0.1 -0.1
Profit/loss for the period -0.2 -0.2
Equity 31 March 2006 2.2 13.0 0.1 -1.2 14.0
Consolidated statement of changes in equity on 31 March 2005
MEUR Share Share Trans- Earnings Equity
capital premium lation
fund diff.
Equity 1 Jan 2005 2.2 13.1 0.0 -1.2 14.1
Translation differences
Profit/loss for the period -0.6 -0.6
Equity 31 March 2005 2.2 13.1 0.0 -1.7 13.6
1-3/06 1-3/05 Change Change % 1-12/05
Investments, gross, MEUR 0.4 0.4 0.0 0 2.0
% of net sales 4.9 6.0 7.0
Average number of
employees 290 293 -3 -1 295
Mortgages and assets pledged for liabilities and leasing
commitments
31.3.2006 31.3.2005 31.12.2005
MEUR MEUR MEUR
Mortgages and pledged assets
Loans from financial
institutions 2.2 2.5 2.3
Corporate mortgages 1.6 1.6 1.6
Mortgages on real estate 1.4 1.4 1.4
Other long-term liabilities 0.5 0.6 0.5
Mortgages on real estate 0.8 0.8 0.8
Leasing commitments 3.5 3.8 3.8
Key ratios 31.3.2006 31.3.2005 31.12.2005
Equity ratio % 49.7 58.1 51.5
Earnings per share, EUR -0.02 -0.05 -0.02
Earnings per share, dilutive
effect of bond, EUR -0.01
Shareholders equity per
share 1.08 1.05 1.10
Average number of shares at
the end of period 12,937,627 12,937,627 12,937,627
-accounting for the dilutive
effect of bonds 13,837,627
The figures in the Interim Report are not audited.
Helsinki on 5 May 2006
Board of Directors of Biohit Oyj
Additional information:
Osmo Suovaniemi, M.D., Ph.D., Professor
President & CEO
Tel: +358-9-773 861
GSM: +358-40-745 5605
Email: osmo.suovaniemi@biohit.com
Distribution:
Helsinki Exchanges
Financial Supervisory Authority
Press
http://www.biohit.com
