THE BIOHIT GROUP’S FINANCIAL STATEMENTS BULLETIN 1 JANUARY – 31 DECEMBER 2011
Biohit Oyj Financial Statements Bulletin 29th Feb 2012 10:30 am
THE BIOHIT GROUP’S FINANCIAL STATEMENTS BULLETIN 1 JANUARY – 31 DECEMBER 2011
SUMMARY
January–December 2011:
Biohit Oyj sold its liquid handling business to Sartorius Lab Holding GmbH on 14 December 2011 and now focuses on its diagnostics business. The diagnostics business is reported as continuing operations and the liquid handling business as discontinued operations.
Net sales from continuing operations EUR 2.1 million (EUR 2.2 million in 1-12/2010)
Operating loss from continuing operations was EUR 4.9 million (EUR -2.9 million) including a goodwill write-down of EUR 2.6 million.
The sale price of the discontinued operations was EUR 68 million in cash. which the buyer placed in an escrow account upon signing the sales agreement. 90% of the sale price was released to the seller in connection with the transaction and the remaining 10% will be retained as collateral for any claims the buyer may have until 31 March 2014.
Operating profit from discontinued operations totalled EUR 49.3 million (EUR 3.3 million in 1-12/2010). including a capital gain of EUR 46.2 million. Due to the terms and conditions of the sale and other unresolved issues related to the transaction. EUR 3.5 million of the capital gain from the sale was not recognised as income.
Profit before taxes EUR 43.8 million (EUR 0.4 million). including a capital gain of EUR 46.2 million from the sale discontinued operations and a goodwill write-down of EUR 2.6 million.
Earnings per share EUR 2.9 (EUR 0.00)
October–December 2011:
Net sales from continuing operations EUR 0.7 million (EUR 0.7 million). change -7.1%
Operating loss from continuing operations EUR 3.3 million (EUR -0.9 million) including a goodwill write-down of EUR 2.6 million
Profit before taxes EUR 43.2 million (EUR 0.0 million)
Earnings per share EUR 2.8 (EUR 0.00)
SEMI KORPELA. PRESIDENT AND CEO:
Biohit Oyj sold its discontinued business to Sartorius Lab Holding GmbH on 14 December 2011. A trimmee group now focuses in the diagnostics business. Atrimmer group structure and focus on core business represent major strengths for Biohit in the current situation.
Biohit aims to bring its diagnostics business to the growth track. In the future. we will make determined efforts to enhance our sales and marketing. to build distribution channels and to develop co-operation with distributors. We will also strengthen our own organisation. Our leading products are Acetium. GastroPanel and quick tests. Besides Europe. Asia is another main market for us.
Growth in the diagnostics business in 2011 was slower than expected. Management resourses we significantly tied up in the preparations of the sale of the liquid handling business and the continuation of the business by the new owner, postponing the benefits from the great potential of the diagnostics business.
The sale of the liquid handling business to Sartorius Lab Holding GmbH had a significant effect on the period's financial performance. Biohit reported a healthy equity ratio at the end of 2011: 79.2% (44.5%). A strong balance sheet provides a good base for building our business.
GROUP’S KEY FIGURES
| 10-12/ | 10-12/ | 1-12/ | 1-12/ | |
| 2011 | 2010 | 2011 | 2010 | |
| Net sales. EUR million. continuing operations | 0.7 | 0.7 | 2.1 | 2.2 |
| Net sales. EUR million. discontinued operations | 8.9 | 10.4 | 37.9 | 37.8 |
| Operating profit/loss. EUR million. continuing operations | -3.3* | -0.9 | -4.9* | -2.9 |
| Operating profit/loss. EUR million. discontinued operations | 46.5** | 1.0 | 49.2** | 3.4 |
| Profit/loss before taxes | 43.2 * | 0.0 | 43.8* | 0.4 |
| Profit/loss for the period *) **) | 38.4 | 0.0 | 38.7 | 0.1 |
| Average number of personnel | 364 | 403 | 422 | 412 |
| Personnel at period end. continuing operations | 34 | 34 | ||
| Equity ratio. % | 79.2 % | 44.3 % | 79.2 % | 44.5 % |
| Earnings per share. EUR | 2.8 | 0.00 | 2.9 | 0.00 |
| Shareholders' equity per share. EUR | 4.0 | 1.01 | 4.0 | 1.01 |
| Average number of shares during the period | 13 615 593 | 12 937 627 | 13 163 616 | 12 937 627 |
| Number of shares at end of period | 13 615 593 | 12 937 627 | 13 615 593 | 12 937 627 |
| *)Operating profit for 2011 includes a goodwill write-down of EUR 2.6 million | ||||
| **)Figures include a capital gain of EUR 46.2 million from the sale of the liquid handling business | ||||
REPORTING
Following the sale of the liquid handling business at the end of 2011, the diagnostics business is now reported as continuing operations and the liquid handling business as discontinued operations.
General administrative expenses for the reporting and comparison periods have been allocated to continuing and discontinued operations on the basis of the number of personnel. In the 2012 reporting. general administrative expenses for the comparison period 2011 will be re-allocated fully to continuing operations.
NET SALES AND RESULT
October-December
In the final quarter. net sales from continuing operations were down 7.1% on the corresponding period in 2010 amounting to EUR 0.7 million (EUR 0.7 million).
Operating loss from continuing operations in the final quarter, excluding the goodwill write-down. was EUR 0.7 million (EUR -0.9 million).
Operating profit from discontinued operations in the final quarter totalled EUR 46.5 million, including the capital gain of EUR 46.2 million from the sale of the liquid handling business.
Profit before taxes was EUR 43.2 million ( EUR 0.0 million). Earnings per share were EUR 2.8 (EUR 0.0).
January-December
Net sales from the continuing business fell by 2.9%.
Operating loss from the diagnostics business came to EUR 4.9 million (EUR -2.9 million). The goodwill write-down of EUR 2.6 million had a negative effect on the diagnostics business results.
Operating profit from discontinued operations was EUR 49.3 million (EUR 3.3 million) including a capital gain of EUR 46.2 million from the sale of the liquid handling business.
Group net sales
| 10-12 2011 MEUR | 10-12 2010 MEUR | Change MEUR | 1-12 2011 MEUR | 1-12 2010 MEUR | |
| Discontinued operations | 8.9 | 10.4 | -1.5 | 37.9 | 37.8 |
| Continuing operations | 0.7 | 0.7 | -0.1 | 2.1 | 2.2 |
| Total | 9.6 | 11.1 | 0.0 | 39.9 | 40.0 |
Group operating profit by segment
| 10-12 2011 MEUR | 10-12 2010 MEUR | Change MEUR | 1-12 2011 MEUR | 1-12 2010 MEUR | |
| Discontinued operations | 46.5 | 1.0 | 45.7 | 49.2 | 3.4 |
| Continuing operations | -3.3 | -0.9 | -2.4 | -4.9 | -2.9 |
| Total | 43.3 | 0.1 | 43.3 | 44.3 | 0.5 |
The impact of currency exchange rates
Exchange rate gains amounted in 2011 to EUR 0.2 million. In the comparison period in 2010. exchange rate gains amounted to EUR 0.2 million.
BALANCE SHEET
On 31 December 2011, the balance sheet total was EUR 68.1 million (EUR 29.4 million) and the equity ratio was 79.2% (44.5%).
WRITE-DOWN OF GOODWILL
The write-down applies to certain products in the GastroPanel test package in continuing operations. The Acetium products are not included in this product group. Growth in the diagnostics business was lower than expected during the period. The expected cash flow from products is negative in the first years of the forecast period due to significant expenses in the development stage and the delay in net sales build-up. Consequently, Biohit Oyj's Board of Directors decided to record a EUR 2.6 million goodwill write-down in the financial statements for 2011. The write-down is based on the goodwill impairment testing conducted at the end of 2011 as required by the IFRS standards. In the future, Biohit will invest in the development of both the GastroPanel and the Acetium business.
FINANCING
Pursuant to the authorization granted by the AGM on 13 April 2011, the Board of Directors decided on a share issue directed at Sartorius Lab Holding GmbH, who subscribed for a total of 677,966 of Biohit’s new Series B shares. This accounts for approximately 4.98% of Biohit shares and 0.97% of all voting rights conferred by the shares following their registration. The subscription price was EUR 2.95 per share.
Biohit Oyj has been able to materially strengthen its financial position since the sale of its liquid handling business to Sartorius Lab Holding Gmbh on 14 December 2011.
RESEARCH AND DEVELOPMENT
In the diagnostics business, research and development focused on the development and improvement of existing products. The company uses third-party experts and subcontractors in its R&D activities. Development expenditure associated with the diagnostics business has not been capitalised.
INVESTMENTS
In continuing operations, gross investments during the reporting period totalled EUR 0.1 million (EUR 0.1 million). The value of the fixed assets transferred to the buyer in connection with the sale of the liquid handling business in December 2011 was EUR 13.7 million.
PERSONNEL
During the reporting period. the average number of personnel employed by the Group was 422 (412 in the corresponding period in 2010), of whom 188 (192) were employed by the parent company and 234 (220) by subsidiaries. At the end of the period, the number of personnel was 34, of whom 27 were employed by the parent company and 2 by subsidiaries. During the transition period, former subsidiaries continue to employ 5 persons.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Biohit's key risks have to do with the investments required to grow its diagnostics business. Risks are involved in the selection and development of distribution channels. in recruitment. and in product margin structures. Significant short-term risks are associated with the selection of new market areas, the timing of expansion into the selected markets, and product success in these markets.
Business development and new product launches require investments that represent a challenge in terms of Biohit's financial position. However, due to the directed share issue arranged during the period and the sale of the liquid handling business, the company was able to improve its cash position and liquidity considerably.
When investing liquid assets, the objective is to gain a return on investment with a minimum risk of losing any capital. 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.
The diagnostics business has a wide customer base, which means Biohit does not materially depend on any individual customers or individual project deliveries. Most of the company's business is conducted in euro, and the indirect effects of currency exchange rate fluctuations are considered minor.
Determined sales and marketing efforts will be required to fully tap into the potential offered by the diagnostics products.
OUTLOOK FOR 2012
Net sales from continuing operations in 2012 is expected to improve from 2011.
MAIN EVENTS IN THE REPORTING PERIOD
Diagnostics business
Biohit's diagnostics business involves the developmen, manufacture and marketing of test and analysis systems for the diagnosis and prevention of diseases of the gastrointestinal tract. These tests and systems are based on innovations and research data. The product range includes GastroPanel examinations and ColonView quick tests for primary healthcare; lactose intolerance and Helicobacter pylori quick tests for specialised healthcare; and instruments and analysis systems for laboratories. The company also markets GastroPanel laboratory analysis packages. In addition to GastroPanel test kits, this package includes liquid handling products, instruments, and software, as well as installation. Training, and maintenance services. The GastroPanel laboratory concept is geared towards facilitating the efficient introduction of GastroPanel examinations.
Biohit’s service laboratory provides analyses of tests developed by Biohit, and the determination of carcinogenic acetaldehyde in foodstuffs and alcoholic beverages. On a global scale, exposure to acetaldehyde is linked to approximately 4 million new cancer cases annually, or nearly 40 per cent of all cancers. Biohit has developed products and a method for reducing exposure to acetaldehyde in the gastrointestinal tract.
The Acetium capsule developed by the company binds carcinogenic acetaldehyde in the stomach. Acetium products were co-developed in cooperation with researchers at the University of Helsinki and Biohit's scientific advisors.
Prescription-free Acetium capsules are recommended for use after the consumption of food or alcohol. to prevent the possible risk of gastric and oesophageal cancer by those who:
have an anacidic or low-acid stomach (diagnosed with GastroPanel) due to atrophy in the mucosa of the stomach and a functional disorder (atrophic gastritis) caused by a Helicobacter pylori infection or an autoimmune disease
have a Helicobacter pylori infection (diagnosed with GastroPanel)
use proton pump inhibitors (PPIs and H2 receptor blockers)
have undergone stomach surgery.
Biohit’s GastroPanel and Acetium are unique innovations in the prevention of gastric and oesophageal cancer. GastroPanel detects the atrophic gastritis caused by a Helicobacter pylori infection or an autoimmune disease, revealing the risk of gastric and oesophageal cancer in time when treatment to cure the condition is still available. Atrophic gastritis of the corpus, which rarely heals, leads to a permanently low-acid or anacidic stomach. Mouth microbes are able to live in an anacidic stomach and produce acetaldehyde from alcohol and the sugars contained in food. In October 2009, the WHO classified acetaldehyde as a Group I carcinogen – a group which also includes asbestos. tobacco and benzene.
Every effort must be made to reduce all Group I carcinogens in the human body and food. regardless of their source. Protected by granted and pending patents, Acetium capsules are, so far, the only way of binding and inactivating carcinogenic acetaldehyde in the stomach, which in turn enables the prevention of gastric and oesophageal cancer. Biohit has applied for patents in several countries for the BioFood method, which can be used to bind and inactivate acetaldehyde in alcoholic beverages and foodstuffs before it enters the mouth. The Acetium lozenge binds acetaldehyde already dissolved into saliva from cigarette smoke. Protected by pending patents, the Acetium lozenge may also help users to give up smoking. This will be further examined in a study on the topic. In animal tests. acetaldehyde has been found to be addictive.
| Diagnostics | 1-12/2011 | 1-12/2010 |
| Net sales. EUR million | 2.1 | 2.2 |
| Change. % | -2.9 % | 23.7 % |
| Operating result. EUR million* | -4.9 | -2.9 |
| Change. % | -72.2 % | -40.1 % |
| Operating result. % of net sales | -234.5 % | -127.3 % |
*) Operating result of the diagnostics segment includes a goodwill write-down of EUR 2.6 million
At Group level, sales of the diagnostics business did not develop as expected during the reporting period. Net sales developments have mainly been favourable in Biohit's domestic market in Finland.
At the turn of 2010/2011, Biohit combined the sales and marketing management in the liquid handling and diagnostics businesses but after the sale of the liquid handling business they were separated. In addition, the company has made changes to its sales organisation.
In Finland, Terveystalo, a private healthcare company operating nationwide, included the GastroPanel examination, developed by Biohit, in its service offering this spring. The GastroPanel examination is now available from all of the one hundred-plus Terveystalo sites across Finland. Health care company Diacor has also included the GastroPanel examination in its offering. Diacor's doctors have been trained to carry out the examination, and it is available from all Diacor sites in the metropolitan Helsinki region.
Discontinued business
At the end of 2011. Biohit sold its discontinued business to Sartorius Lab Holding GmbH.
| Liquid Handling | 1-12/2011 | 1-12/2010 |
| Net sales. EUR million | 37.9 | 37.8 |
| Change. % | 0.1 % | 12.7 % |
| Operating result. EUR million | 49.3* | 3.3 |
| Change. % | 1363.4 % | 4.2 % |
| Operating result. % of net sales | 129.9 % | 8.9 % |
*) Operating result for 2011 includes a capital gain of EUR 46.2 million from the sale of the liquid handling business
MAJOR EVENTS AFTER THE CLOSE OF THE PERIOD
Biohit paid back to the principal shareholders a capital loan of EUR 0.6 million and the accumulated interest 5% of EUR 0.6 million in February 2012. Also in February. the holders of Biohit Oyj's convertible bond sold the loan back to the company. The value of the loan was EUR 4.1 million and interest 6.5%.
A group of 16 gastroenterology experts from twelve countries wrote an article, which was published in the prestigious Scandinavian Journal of Gastroenterology (SJG). The objective of this group of experts is to promote international co-operation aimed at developing safer and more cost-efficient diagnostic tools for stomach diseases as well as their prevention and care (GastroPanel biomarkers: ”Rationale in diagnosis and screening of atrophic gastritis with stomach-specific plasma biomarkers”. Scandinavian Journal of Gastroenterology. 2012; 47: 136–147).
ADMINISTRATION
Authorisations of the Board of Directors
Based on a resolution of the AGM held on 13 April 2011, the Board of the company is authorised to decide on the issue of shares and to issue the special rights referred to in Chapter 10. Section 1 of the Limited Liability Companies Act so that the maximum number of new Series B shares to be issued pursuant to the special rights is 2,000,000, which corresponds to approximately 20% of the company's Series B shares. In August, based on the authorisation, the Board of Directors decided to arrange a directed share issue to Sartorius Lab Holding GmbH. The remaining authorisation is for 1.322.034 Series B shares.
According to the resolution, the Board of Directors is entitled to decide 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 entitling to the receipt of shares can occur in deviation from the subscription right of shareholders (special issue). Such an authorisation remains valid for three years from the resolution of the AGM.
Changes to Biohit Oyj’s management
Semi Korpela, M.Sc. (Econ.), born 1970, was appointed President and CEO of Biohit Group as of 15 December 2011. Previously, Korpela worked as the Financial Director of Biohit Group from 2003 to 2006. After this, Korpela held positions as Financial Director at CPS Color Group, Medisize Group and LDR Group Oy.
Tapani Tiusanen, PhD. (Physics), DipEMC (Marketing), born 1956, was appointed the new Head of Operations and IT of Biohit Group as of 16 December 2011. Previously, Tiusanen worked in several positions at Labsystems Oyj, Vaisala Oyj and Kibron Inc. and for the last three years as Development Manager at Biohit Group.
Ulla Savelainen, B.Sc. Econ. & Bus. Adm., born 1949, was appointed Head of Financials, HR and Communications of Biohit Group as of 16 December 2011. Previously, Savelainen worked as a Financial Administration Consultant in several listed companies. From 2000 to 2005, Savelainen worked as the Financial Manager of Sentera Oyj.
Terhi Lampén, M.Sc. (Econ.), born 1973, was appointed Head of Sales and Marketing of Biohit Group as of 16 December 2011. Previously, Lampén worked as the Nordic Sales Manager of the Diagnostics business and from the beginning of 2011 onwards as the Marketing Manager. Before her career at Biohit, Lampén worked as a Product Specialist at Johnson & Johnson and as a Regional Manager at Boehringer Ingelheim.
Lea Paloheimo, PhD (Clinical Biochemistry) born 1951, was appointed Head of Product Development and Quality of Biohit Group as of 16 December 2011. Paloheimo has worked at Biohit Group since 2001.
SHARE TURNOVER AND PRICE DEVELOPMENT
Biohit Oyj's shares are divided into series A and series B shares. There are 2,975,500 series A shares and 10,640,093 series B shares, totalling 13,615,593 shares. Series A shares confer 20 votes per share and Series B shares 1 vote per share. The dividend paid for Series B shares is, however, two (2) per cent of the nominal value higher than that paid for Series A shares. The total market capitalisation value (supposing that the market capitalisation value for series A and B shares is equal) at the end of the period was EUR 39.9 million (EUR 27.2 million on 31 December 2010).
Biohit Oyj's series B shares are quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group under the code BIOBV.
| BIOBV/NASDAQ OMX Helsinki | 1-12/2011 | 1-12/2010 |
| High, EUR | 3.96 | 4.91 |
| Low, EUR | 1.74 | 1.50 |
| Average, EUR | 2.30 | 3.42 |
| Latest, EUR | 2.93 | 2.10 |
| Turnover, EUR | 8,228,319 | 32,166,841 |
| Turnover, volume | 3,001,175 | 9,415,015 |
Shareholders
As a result of the directed share issue arranged during the reporting period, the number of the company's shares grew by 677,966 shares.
At the end of the reporting period on 31 December 2011, the company had 4,238 shareholders (4,602 on 31 December 2010). Private households held 69.23% (72.82%), companies 22.66% (23.62%), and public sector organisations 2.54% (2.65%) of the shares. Foreign ownership or nominee registrations accounted for 5.49% (0.86%) of shares.
Further information on the shares, major shareholders, and management’s shareholdings is available on the company’s website at www.biohit.fi/investors.
ACCOUNTING PRINCIPLES
This interim report was prepared in accordance with the IAS 34 standard.
Following the divestment made in 14 December 2011 the diagnostics business is presented as continuing operations and the liquid handling business as discontinued operations. Separate segment-based reporting will no longer be provided. In other respects Biohit Oyj has applied the same accounting principles in preparing this financial statement bulletin as for its 2010 financial statements. The IFRS standards that came into effect in 2011 did not affect 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
| Continuing operations | Discontinued operations | Biohit Group | |||||
| 10-12 2011 MEUR | 10-12 2010 MEUR | 10-12 2011 MEUR | 10-12 2010 MEUR | 10-12 2011 MEUR | 10-12 2010 MEUR | ||
| Net sales | 0.7 | 0.7 | 8.9 | 10.4 | 9.6 | 11.1 | |
| Other operating income * | 0.0 | 0.1 | 46.3 | 0.0 | 46.3 | 0.1 | |
| Increase/decrease in inventories in finished goods and in work in progress | 0.3 | -0.1 | -0.6 | 0.1 | -0.2 | 0.0 | |
| Materials and services | -0.8 | -0.3 | -1.8 | -2.1 | -2.6 | -2.4 | |
| Personnel expenses | -0.6 | -0.6 | -3.4 | -4.1 | -4.1 | -4.7 | |
| Depreciation ** | -2.7 | 0.0 | -0.5 | -0.4 | -3.2 | -0.4 | |
| Other operating expenses | 0.0 | -0.7 | -2.4 | -2.8 | -2.4 | -3.6 | |
| Operating profit/loss | -3.3 | -0.9 | 46.5 | 1.0 | 43.3 | 0.1 | |
| Financial income | 0.0 | 0.1 | |||||
| Financial expenses | 0.0 | -0.2 | |||||
| Profit/loss before taxes | 43.2 | 0.0 | |||||
| Direct taxes | -4.9 | 0.0 | |||||
| Profit/loss for the period | 38.4 | 0.0 | |||||
| Other items in the comprehensive income statement | |||||||
| Currency-related differences | 0.0 | 0.2 | |||||
| Total comprehensive income for the period | 38.4 | 0.2 | |||||
*) Operating profit from the discontinued operations includes a capital gain of EUR 46.2 million
**) Operating loss from the continuing operations includes a goodwill write-down of EUR 2.6 million
| Continuing operations | Discontinued operations | Biohit Group | |||||
| 10-12 2011 MEUR | 10-12 2010 MEUR | 10-12 2011 MEUR | 10-12 2010 MEUR | 10-12 2011 MEUR | 10-12 2010 MEUR | ||
| Net sales | 2.1 | 2.2 | 37.9 | 37.7 | 39.9 | 40.0 | |
| Other operating income * | 0.0 | 0.2 | 46.3 | 0.1 | 46.3 | 0.2 | |
| Increase/decrease in inventories in finished goods and in work in progress | -0.2 | 0.0 | 0.4 | -0.5 | 0.2 | -0.4 | |
| Materials and services | -0.8 | -0.9 | -9.0 | -6.9 | -9.8 | -7.8 | |
| Personnel expenses | -2.4 | -2.0 | -15.0 | -15.1 | -17.3 | -17.1 | |
| Depreciation ** | -2.9 | -0.1 | -1.7 | -1.6 | -4.7 | -1.7 | |
| Other operating expenses | -0.7 | -2.4 | -9.6 | -10.4 | -10.3 | -12.8 | |
| Operating profit/loss | -4.9 | -2.9 | 49.3 | 3.3 | 44.3 | 0.5 | |
| Financial income | 0.3 | 0.7 | |||||
| Financial expenses | -0.7 | -0.8 | |||||
| Profit/loss before taxes | 43.8 | 0.4 | |||||
| Direct taxes | -5.1 | -0.3 | |||||
| Profit/loss for the period | 38.7 | 0.1 | |||||
| Other items in the comprehensive income statement | |||||||
| Currency-related differences | 0.1 | 0.2 | |||||
| Total comprehensive income for the period | 38.9 | 0.3 | |||||
*) Operating profit from the discontinued operations includes a capital gain of EUR 46.2 million
**) Operating loss from the continuing operations includes a goodwill write-down of EUR 2.6 million
Biohit Oyj’s earnings are attributable to the equity holders of the parent company in their entirety, as there are no minority interests.
| Earnings per share calculated from earnings attributable to parent company shareholders | 1-12 | 1-12 |
| 2011 | 2010 | |
| Earnings per share, diluted*, EUR | 2.9 | 0.00 |
*) The convertible bond is not dilutive in respect of earnings per share in the financial years 2011 and 2010.
CONSOLIDATED BALANCE SHEET
| 31.12.2011 | 31.12.2010 | |
| MEUR | MEUR | |
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Goodwill | 0.0 | 2.6 |
| Intangible assets | 0.3 | 3.2 |
| Property, plant and equipment | 0.1 | 6.5 |
| Receivables | 0.0 | 0.0 |
| Deferred tax assets | 0.1 | 1.8 |
| Total non-current assets | 0.6 | 14.2 |
| CURRENT ASSETS | ||
| Inventories | 0.3 | 5.2 |
| Trade and other receivables | 9,3* | 7.8 |
| Financial assets at fair value through profit or loss | 10.0 | 0.5 |
| Cash and cash equivalents | 47.9 | 1.7 |
| Total current assets | 67.5 | 15.2 |
| TOTAL ASSETS | 68.1 | 29.4 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to parent company shareholders | ||
| Share capital | 2.3 | 2.2 |
| Invested unrestricted equity fund | 14.3 | 12.4 |
| Currency-related differences | 0.0 | -0.1 |
| Retained earnings | 37.3 | -1.5 |
| Total equity | 53.9 | 13.0 |
| NON-CURRENT LIABILITIES | ||
| Deferred income tax liabilities | 0.0 | 0.0 |
| Pension obligations | 0.0 | 0.2 |
| Total interest-bearing liabilities | 0.0 | 8.5 |
| Other liabilities | 0.1 | 0.7 |
| Total non-current liabilities | 0.1 | 9.4 |
| CURRENT LIABILITIES | ||
| Trade payables | 3.0 | 1.9 |
| Total interest-bearing liabilities | 4.9 | 0.9 |
| Other liabilities | 6.2 | 4.2 |
| Total current liabilities | 14.1 | 7.0 |
| Total liabilities | 14.2 | 16.4 |
| TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | 68.1 | 29.4 |
*) Includes EUR 6.8 million in receivables from a business transaction; these funds are placed in a blocked account. Funds will released from the blocked account 31 March 2014, provided no claims concerning the transaction are made.
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Statement of changes in consolidated shareholders’ equity on 30 September 2011
| MEUR | Share capital | Currency-related differences | Invested unrestricted equity fund | Retained earnings | Shareholders’ equity |
| Shareholders’ equity on 1 January 2011 | 2.2 | -0.1 | 12.4 | -1.5 | 13.0 |
| Share issue | 0.1 | 1.9 | 2.0 | ||
| Total comprehensive income for the period | 0.1 | 38.7 | 38.9 | ||
| Shareholders’ equity on 31 December 2011 | 2.3 | 0.0 | 14.3 | 37.3 | 53.9 |
Statement of changes in consolidated shareholders’ equity on 30 September 2010
| MEUR | Share capital | Currency-related differences | Invested unrestricted equity fund | Retained earnings | Shareholders’ equity |
| Shareholders’ equity on 1 January 2010 | 2.2 | -0.3 | 12.4 | -1.5 | 12.7 |
| Total comprehensive income for the period | 0.2 | 0.1 | 0.3 | ||
| Shareholders’ equity on 31 December 2010 | 2.2 | -0.1 | 12.4 | -1.5 | 13.0 |
CASH FLOW STATEMENT
| 1-12/2011 MEUR | 1-12/2010 MEUR | |
| CASH FLOW FROM OPERATIONS | ||
| Profit /loss for the period | 38.7 | 0.1 |
| Adjustments | -36.8 | 2.1 |
| CHANGES IN WORKING CAPITAL | 2.9 | 0.1 |
| Interest paid and payments on other financial expenses | -0.8 | -0.5 |
| Interest received | 0.0 | 0.0 |
| Realised exchange rate gains and losses | 0.4 | 0.4 |
| Direct taxes paid | -0.2 | -0.2 |
| Net cash flow from operations | 4.2 | 2.0 |
| CASH FLOW FROM INVESTMENTS | ||
| Investments in tangible and intangible assets | -4.1 | -1.8 |
| Capital gain from the sale of liquid handling business | 57.3 | |
| Proceeds from tangible assets | 0.4 | 0,0 |
| Investments and income from the disposal of investments into funds and deposits, net | -9.5 | -0.1 |
| Net cash flow from investments | 44.2 | -1.9 |
| CASH FLOW FROM FINANCING | ||
| Share issue | 2.0 | |
| Loan withdrawals | 0.5 | 5.7 |
| Loan repayments | -4.7 | -5.8 |
| Net cash flow from financing | -2.2 | -0.1 |
| Increase (+)/decrease (-) in cash and cash equivalents | 46.2 | -0,0 |
| Cash and cash equivalents at the beginning of period | 1.7 | 1.6 |
| Effect of exchange rate changes | 0.0 | 0.1 |
| Cash and cash equivalents at the end of period | 47.9 | 1.7 |
RELATED PARTY TRANSACTIONS
There have been no noticeable changes in related party transactions during the reporting period.
PLEDGES, CONTINGENT LIABILITIES AND OTHER LIABILITIES
| 1-12 2011 MEUR | 1-12 2010 MEUR | |
| Collaterals given for the parent company | ||
| Corporate mortgage | 0.0 | 2.5 |
| Mortgage on real estate | 0.0 | 2.7 |
| Guarantees | 0.0 | 0.0 |
| Collaterals given on behalf of subsidiaries | ||
| Guarantees | 0.0 | 0.2 |
| Other liabilities | ||
| Leasing commitments: | ||
| Due for payment before one year | 0.6 | 0.8 |
| Due for payment after 1 year but not later than 5 years | 0.7 | 1.1 |
| Due for payment after 5 years | ||
| Total * | 1.3 | 1.9 |
| Other rental commitments: | ||
| Due for payment before one year | 0.1 | 0.9 |
| Due for payment after 1 year but not later than 5 years | 0.1 | 2.0 |
| Due for payment after 5 years | 0.0 | 2.0 |
| Total | 0.3 | 5.0 |
| Total other liabilities | 1.6 | 6.9 |
| Total collaterals and contingent liabilities | 1.6 | 12.3 |
*) Includes leasing commitments in the amount of EUR 1.1 million to be transferred to Sartorius. The liability transfer process is still in progress.
Helsinki. 29 February 2012
Biohit Oyj
Board of Directors
Further information:
Semi Korpela
Tel. +358 9 773 861
semi.korpela@biohit.fi
Distribution:
NASDAQ OMX Helsinki Oyj
Central storage facility (www.oam.fi)
Principal media
http://www.biohit.fi
About Biohit Oyj:
Biohit Oyj is a globally operating Finnish biotechnology company established in 1988. Biohit's mission crystallizes in its motto “Innovating for Health”. The company assumes social responsibility by producing innovations, new technologies and analysis systems for use in medicine, research institutions and industry. These products help to promote research and diagnostics, while improving quality of life by preventing disease, human suffering and financial loss. Biohit also seeks to innovate and develop the marketing and availability of its products and services.
Biohit works with scientific communities to produce new technologies, products and services based on research results and innovations. These can be used to develop safe and cost-effective diagnostic tests for the early detection and prevention of diseases of the gastrointestinal tract. (www.biohit.fi / International / State of the art GastroPanel and Acetium innovations for the unmet need).
In January 2012, sixteen world-leading gastroenterology specialists from twelve countries proposed in their SJG publication the use of the biomarkers of the modern GastroPanel test for safe and cost-efficient primary diagnosis and screening of Helicobacter infection and atrophic gastritis in patients with stomach discomfort and in asymptomatic patients, as it is neither safe nor cost-efficient to use the 13C urea breath test for this purpose. In addition, the authors of the publication state that acetaldehyde generated in an achlorhydric stomach (a consequence of atrophic gastritis) is a significant reason for an increased gastric and oesophageal cancer risk. Acetium capsules can reduce the amount of cancer-causing acetaldehyde generated in the stomach – and thus, very likely, they also reduce the cancer risk (SJG: “GastroPanel biomarkers: Rationale in diagnosis and screening of atrophic gastritis with stomach-specific plasma biomarkers”, Scadinavian Journal of Gastroenterology. 2012; 47: 136–147).
Biohit's products include analysis systems for the prevention and early diagnosis of gastrointestinal diseases, such as the blood-sample based GastroPanel examinations for the diagnosis of stomach illnesses and associated risks, quick tests for the diagnosis of lactose intolerance and H. pylori infection in connection with gastroscopy, and the ColonView examination for the early detection of intestinal bleeding that indicates a risk of colorectal cancer. Acetium reduces the amount of carcinogenic acetaldehyde in an anacidic stomach. (www.acetium.com/test - reveals acetaldehyde exposure)
The population is aging and, therefore, the need for safe and cost-efficient diagnosis and prevention of diseases is strongly increasing. People are becoming more aware of acetaldehyde and the cancer risks associated with it. This is expected to substantially increase the interest in the company's products and services.
Biohit is headquartered in Helsinki and has a subsidiary in the United Kingdom. Since 1999, Biohit’s Series B share (BIOBV) has been quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group (www.biohit.fi/Sijoittajat).
Read more at www.biohit.fi