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news.Axis-Shield plc (Axis-Shield), an in vitro diagnostics company, has reported total operating revenues of GBP85.3 million for the full year of 2008, up 27.8%, compared with total operating revenues of GBP66.7 million in the previous year-end. It has reported profit after taxation (PAT) of GBP4.4 million, or GBP9.06 per diluted share, for the full year of 2008, compared with the profit after taxation of GBP1.9 million or GBP4.07 per diluted share, in the same period previous year.
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Gross Profit
Gross margin (52.0%) was higher than 2007 (50.9%) as expected, gaining from foreign currency effects and economies of scale as Afinion and AxSYM sales volumes have increased.
Underlying operating costs increased by 25.3% to GBP39.1 million (2007: GBP31.2 million).
At constant currency, operating costs increased by 13.9%. This increase was driven by planned increases in sales and marketing and the acquisition of our Swiss distribution business, while administration and R&D costs reduced marginally from 2007 after currency effects, in line with expectations.
Underlying operating profits were GBP5.3 million (2007: GBP2.8 million). This is after charges for share-based payments totalling GBP0.6 million (2007: GBP0.3 million).
Balance Sheet
The Group’s non-current assets at 31 December 2008 were GBP58.4 million (2007: GBP45.3 million), which consisted principally of property, plant and equipment of GBP20.5 million (2007: GBP17.6 million), goodwill of GBP10.5 million (2007: GBP7.3 million), other intangible assets of GBP7.7 million (2007: GBP7.4 million) and capitalised development costs of GBP4.2 million (2007: GBP6.2 million). The major increase in property, plant and equipment relates to the investment in our new Afinion™ production line. In addition, there is a deferred tax asset of GBP15.4 million (2007: GBP6.8 million), comprising broughtforward UK tax losses of GBP5.3 million and Norwegian tax losses of GBP10.1 million recognised in 2008.
Inventories have increased to GBP13.1 million (2007: GBP12.3 million) as a result of the Swiss acquisition, the scale-up of Afinion manufacturing and foreign exchange effects. At constant currency, inventories were GBP1.0 million lower than at 31 December 2007. Trade and Other Receivables increased to GBP19.4 million (2007: GBP13.3 million) as a result of higher sales volumes and the Swiss acquisition. Trade and Other Payables, which include the current amount due on the AxSYM® licensing agreement, have increased from GBP16.3 million in 2007 to GBP18.0 million.
Current borrowings have increased from GBP1.5 million to GBP3.3 million, as payments under the Afinion™ production line lease increase. Non-current liabilities include lease finance and term loan borrowings, which have increased to GBP13.6 million (2007: GBP10.0 million) and retirement benefit obligations of GBP3.1 million (2007: GBP2.5 million). Retirement benefit obligations are now recognised in full at actuarial valuations, following the change of accounting policy described in note 1 to the financial statements. In addition, other non-current liabilities, which relate to deferred income and deferred payment of exceptional items amount to GBP0.7 million (2007: GBP0.5 million).
At 31 December 2008, shareholders’ funds stood at GBP59.6 million an increase of GBP6.9 million over 2007 (GBP52.7 million).