Antibody developer Bioventix (BVXP:AIM) is one of London’s biggest risers in early trading on Friday after ‘significantly’ beating profit expectations. Shares in the £55.5 million cap shot up 17.6% to £11.00 following the upbeat update for the year to 30 June, which has forced analysts to upgrade their forecasts.
Revenues for the period are now expected to be above £4.2 million. Analysts at broker FinnCap had forecast £3.8 million, slightly ahead of the £3.5 million collected in the previous 12 months.
More product launches by its customers in the US mean that Bioventix is collecting higher royalties. This along with low fixed-costs signals that pre-tax profits will also beat expectations during the period.
Following the update FinnCap has raised its forecasts for the third time in 11 months. It now expects a £3.1 million pre-tax profit this year, 14.8% higher than its previous £2.7 million estimate. It has lifted its pre-tax profit forecast for the year to 30 June 2016 by 17.7% to £3.4 million.
The broker says there is also scope for dividend upgrades with 26.4p a share expected for the year to 30 June 2015.
Bioventix’s prelims will be released on 5 October.