MEVIS MEDICAL SOLUTIONS AG Interim Report
MeVis Medical Solutions AG H1-2023/2024
Interim Report H1 2023/2024
TABLE OF CONTENTS | ||
APPENDIX | 10 | |
Basic information | 10 | |
General information | 10 | |
Accounting and valuation methods | 10 | |
Selected notes to the balance sheet and income statement | 10 | |
1. | Receivables and other assets | 10 |
2. | Provisions | 10 |
3. | Liabilities | 11 |
4. | Accruals and deferred income | 11 |
5. | Sales revenue | 11 |
6. | Other operating income | 11 |
7. | Personnel expenses | 11 |
8. | Other operating expenses | 11 |
9. | Relationships with related parties | 11 |
Supplementary report | 12 | |
ASSURANCE OF THE LEGAL REPRESENTATIVE | 13 | |
DISCLAIMER | 14 |
page 1 | MeVis Medical Solutions AG |
Interim Report H1 2023/2024
FOREWORD BY THE
EXECUTIVE BOARD
Dear readers,
In the first half of the year, the company's revenue amounted to € 8,774 k (previous year: € 8,472 k). Of this
figure, 27% (previous year: 26%) is attributable to the sale of licenses, 35% (previous year: 35%) to maintenance
revenue and 38% (previous year: 39%) to other revenue, which includes services for and recharges to affiliated companies and the parent company. Earnings before interest and taxes (EBIT) rose from € 1,893 k to
- 2,735 k, which corresponds to an EBIT margin of 24%, mainly due to the lower expenses from currency translation compared to the previous year.
As in the first six months of the previous year, business in Mammography Diagnostics developed more positively in the first half of 2024. In line with our forecast, more licenses were sold, which is attributable to the renewed increase in demand. The maintenance business in Mammography Diagnostics remained stable compared to the previous year. In addition, other sales in the area of mammography diagnostics also developed better than in the same period of the previous year. The cooperation with our customer Hologic continues to be very positive.
The sales trend in the area of lung cancer screening solutions paints a varied picture. Due to process changes by our OEM customers when ordering licenses, we are unfortunately behind the previous year in terms of orders for our lung CAD algorithms. In the marketing of our stand-alone and cloud-based Veolity solutions, we are slightly ahead of the previous year in terms of license sales, but below our expectations. We are seeing increasing demand for commercial use in the early detection of lung cancer. Unfortunately, however, we are finding that tenders continue to be delayed, which means that orders and implementation are also being delayed. The market outlook for comprehensive lung cancer screening remains very positive and it is noticeable that more medical technology companies are looking at solutions for lung cancer screening and bringing products onto the market.
Solutions in the field of liver surgery continued to develop very positively in the past six months. Following the market launch of MeVis' own software application and in addition to the growing services in the area of technical visualization of the liver, which MeVis has been providing for many years, we have a positive outlook for the second half of the year. Thanks to increased marketing and sales activities and the approval of the liver surgery software application in the USA, which is very important for us, we see increasing potential in this area. In the future, we will increasingly expand our activities to large markets such as the Middle East and India.
At this point in time, we are sticking to our forecast: for the 2023/2024 financial year, sales are now expected to increase slightly year-on-year to between € 18.0 m and € 18.5 m. In addition to the slight increase in sales with the customer Hologic, sales in the lung and liver area are also expected to increase slightly. We expect a slight decline in the area of development services. For earnings before interest and taxes (EBIT), we expect stability in the range of € 4.5 m to € 5.0 m. The forecast slight growth in sales and the simultaneous increase in personnel costs and other operating expenses are key drivers for the EBIT outlook.
As in the previous reporting period, the Management Board will regularly review its expectations over the course of the 2023/2024 financial year on the basis of current business developments.
Marcus Kirchhoff
Executive Board Member
MeVis Medical Solutions AG | Page 2 |
Interim Report H1 2023/2024
THE MEVIS SHARE
AS OF 31.03.2024
ISIN / WKN / Ticker Symbol
DE000A0LBFE4 / A0LBFE / M3V
Industry classification | Software / Medical technology | ||||
signed Share capital | € 1,820,000,00 | ||||
Number of shares | 1,820,000 | ||||
Last price fixing on 29.09.2023 | € 28.40 | ||||
Last price fixing on 28.03.2024 | € 25.00 | ||||
Highest/lowest price in 2023/2024 | € 28.20 / € 23.20 | ||||
Market capitalization | € 45,500 million | ||||
General Standard (Regulated Market) | Frankfurt and Xetra | ||||
Regulated unofficial market | Berlin, Dusseldorf, Munich, Stuttgart | ||||
Indices | CDAX, General All-Share, DAXsector All Software | ||||
SHARE PRICE DEVELOPMENT
From October 1, 2023 to March 31, 2024, the MeVis Medical Solutions AG share price developed with a slightly negative trend around an average price level of € 25.00. At the beginning of the fiscal year, the share was quoted at € 28.20 and closed at € 25.00 in Xetra trading at the end of March. Over the course of the first half of fiscal year 2023/2024, the share price reached a high of € 28.20 and a low of € 23.20 in Xetra trading. Compared to
- 35.80 at the end of March 31, 2023, the value of the MeVis share has fallen by 35 % in twelve months. As at the reporting date of March 28, 2024, the market capitalization thus amounted to approximately € 46 million, taking into account 1,820,000 shares in circulation.
SHAREHOLDER STRUCTURE AS AT MARCH 31, 2024
As of the balance sheet date, 73.66 % of the total share capital of MeVis Medical Solutions AG was held by Varex Imaging Deutschland AG, an indirect subsidiary of Varex Imaging Corporation, Salt Lake City, Utah, USA. According to the shareholder notifications received by us, another institutional shareholder is HANSAINVEST Hanseatische Investment-GmbH, which holds approx. 12.57 % of the total share capital of MeVis Medical Solutions AG. This means that around 13.77 % of the shares are in free float.
COMPENSATION PAYMENT
The domination and profit and loss transfer agreement between Varex Imaging Deutschland AG and MMS AG obliges Varex Imaging Deutschland AG to pay the outside shareholders a recurring cash payment ("compensa- tion payment") for each full financial year for the duration of this agreement. This amounts to € 1.13 (gross) or
- 0.95 (net) per share for each full financial year.
page 3 | MeVis Medical Solutions AG |
Interim Report H1 2023/2024
INTERIM MANAGEMENT REPORT H1 2023/2024
PRELIMINARY NOTE
This report covers the first half of the 2023/2024 financial year, i.e. the reporting period from October 1, 2023 to March 31, 2024. The prior-year amounts stated below relate to the first half of the 2022/2023 financial year from October 1, 2022 to March 31, 2023. MeVis Medical Solutions AG prepared its annual financial statements for the 2022/2023 financial year in accordance with the provisions of the German Commercial Code (HGB) applicable to corporations and in compliance with the German Stock Corporation Act (AktG). These interim financial statements were also prepared on this basis.
COMPANY BASICS
ORGANIZATION
MeVis Medical Solutions AG (hereinafter also referred to as "MMS AG", "MeVis" or the "Company") was founded in 1997 and commenced operations in 1998. 73.66 % of the share capital of MMS AG is currently held by Varex Imaging Deutschland AG, Willich. There is a control and profit and loss transfer agreement between Varex Imaging Deutschland AG as the controlling company and MeVis Medical Solutions AG as the controlled com- pany. Through Varex Imaging Deutschland AG, MMS AG thus belongs to the Varex Group under the management of Varex Imaging Corporation, Salt Lake City, Utah, USA.
At the end of fiscal year 2022/2023, MMS AG held 51 % of the shares in MeVis BreastCare GmbH & Co. KG, Bremen, (hereinafter also referred to as "MBC KG") as part of a joint venture with Siemens Healthcare GmbH, Munich. At the end of October 1, 2023, Varex Imaging Deutschland AG acquired all shares held by Siemens Healthcare GmbH, Munich, and 2 % of the shares held by MMS AG in the joint venture. Since October 2, 2023, MMS AG has thus held 49 % of MeVis BreastCare GmbH & Co. KG, Bremen, as part of a joint venture with Varex Imaging Deutschland AG.
BRIEF OVERVIEW OF BUSINESS ACTIVITIES
MeVis Medical Solutions AG develops innovative software for recording, analyzing and evaluating image data and markets it to manufacturers of medical devices, providers of medical IT platforms and, to a lesser extent, directly to clinical end customers.
The clinical focus is on image-based early detection and diagnosis of epidemiologically significant diseases, such as breast, lung and liver diseases. The software solutions support many of the imaging procedures used. These include not only X-ray-based radiography procedures such as computed tomography, mammography or digital tomosynthesis, but also magnetic resonance imaging, digital sonography and the simultaneous use of several procedures (multimodality). MeVis supplies technologies and software applications for global market leaders in the medical sector that meet these companies' requirements for technological leadership and help them to expand their position.
In addition to the sale of software licenses and associated maintenance contracts, MeVis also offers software programming services for medical technology companies as development services. These include project processing by software development teams consisting of software developers, product and project managers, application specialists and test engineers. The teams support external customers in the development of software modules or applications and in the integration of new functions and new technologies, such as algorithms based on artificial intelligence. Services are also provided to clinical end customers. These include three-dimensional technical visualizations ("MeVis Distant Services"), interactive online training to improve clinicians' diagnostic skills and Internet-based special applications in teleradiology ("MeVis Online Services").
While in the early years of MeVis the focus was on image-based early detection and diagnosis of breast cancer, today MeVis uses the clinical expertise it has acquired, its know-how in the field of breast cancer, its innovative
MeVis Medical Solutions AG | Page 4 |
Interim Report H1 2023/2024
software technologies and the partner network it has built up to successively develop its software solutions for new applications in other indications and diseases of other parts of the body.
ECONOMIC REPORT
BUSINESS PERFORMANCE
The company's operating business consists of the development and sale of software licenses, the associated maintenance business, software programming for medical technology companies (development services) and the provision of services for technical visualizations (distant services) as well as online training.
At around 89 % (previous year: 87 %) of total sales, the software business, which includes products for the medical technology company Hologic, once again accounted for the majority of the company's total sales in this reporting period.
The first half of the 2023/2024 financial year was once again successful for MeVis in terms of key financial figures. The company continued to benefit from Hologic's very good market position for breast cancer screening.
EARNINGS SITUATION
In the first half of the year, the company's revenue amounted to € 8,774 k (previous year: € 8,472 k). The sale
of licenses accounted for 27 % of sales (previous year: 26 %), maintenance sales for 35 % (previous year: 35
%) and other sales for 38 % (previous year: 39 %), which include services for and recharges to affiliated companies and the parent company. The slight improvement in license sales is mainly attributable to the business with Hologic. The deterioration in other sales compared to the previous year is due to a reduction in sales in the area of development services.
Other operating income amounted to € 652 k in the first half of the year (previous year: € 626 k). This mainly
comprises income from exchange rate differences in the amount of € 531 k (previous year: € 568 k).
The cost of materials increased slightly to € 250 k (previous year: € 208 k). The company's personnel expenses
amounted to € 5,073 k in the first half of the year (previous year: € 4,739 k). In the reporting year, the average number of permanent employees at the company rose by 3 to 111.
Other operating expenses amounted to € 1,947 k in the reporting period (previous year: € 2,834 k). They consist
of expenses from exchange rate differences of € 742 k (previous year: € 1,739 k), rental expenses of € 259 k
(previous year: € 252 k), expenses for legal, consulting and auditing services of € 228 k (previous year:
- 217 k), selling expenses of € 106 k (previous year: € 129 k), operating expenses of € 59 k (previous year:
- 64 k) and other operating expenses of € 560 k (previous year: € 433 k).
Earnings before interest and taxes (EBIT) rose from € 1,893 k to € 2,735 k, mainly due to lower expenses from currency translation compared to the previous year.
Income from loans of financial assets amounted to € 643 k (previous year: € 624 k) and is attributable to interest income from the loan granted to Varex Imaging Deutschland AG. This results in earnings before taxes (EBT) of € 2,735 k (previous year: € 1,893 k).
Income taxes of € 74 k (previous year: € 64 k) were incurred in the past half year, therefore, taking into account the expenses from the profit to be transferred to Varex Imaging Deutschland AG in the amount of € 2,661 k (previous year: € 1,829 k), net income for the year amounted to € 0 k (previous year: € 0 k). It should be noted that the expense from the profit transfer does not legally arise until the end of the financial year.
NET ASSETS AND FINANCIAL POSITION
Total assets decreased to € 25,131 k (Sep 30, 2023: € 28,054 k). Current assets decreased by € 3,152 k, while equity remained constant. Provisions decreased by € 692 k and liabilities decreased by € 2,322 k. Deferred income increased by € 92 k.
page 5 | MeVis Medical Solutions AG |
Interim Report H1 2023/2024
The equity ratio increased to 71% (Sep 30, 2023: 64%) due to the lower balance sheet total and constant equity,
while the gearing ratio fell accordingly to 29% (Sep 30, 2023: 36%).
Current assets decreased by € 3,152 k to € 8,174 k as at the balance sheet date (Sep 30, 2023: € 11,326 k). This is mainly due to the decrease in trade receivables from € 2,652 k to € 2,355 k and the decrease in cash and cash equivalents (cash in hand, bank balances) from € 7,744 k to € 4,872 k.
The company's equity remained constant at € 17,826 k (Sep 30, 2023: € 17,826 k) and, in addition to the sub-
scribed capital of € 1,820 k (Sep 30, 2023: € 1,820 k), comprises the capital reserve of € 11,461 k (Sep 30,
2023: € 11,461 k) as well as the statutory revenue reserves of € 5 k (Sep 30, 2023: € 5 k) and other revenue
reserves of € 4,540 k (Sep 30, 2023: € 4,540 k).
Provisions decreased by € 692 k compared to the previous year to € 2,687 k (Sep 30, 2023: € 3,379 k). Pension provisions remained constant. Other provisions decreased to € 2,431 k, partly due to lower personnel provisions. Liabilities decreased mainly due to the reduction in liabilities to shareholders as at the balance sheet date by
- 2,260 k to € 2,661 k (Sep 30, 2023: € 4,921 k). Deferred income increased by € 92 k to € 1,737 k due to higher customer prepayments for services to be rendered by the company in the future compared to the previous year.
The company's cash and cash equivalents decreased by € 2,871 k to € 4,872 k in the first half of the year.
Overall, the net assets, financial position and results of operations developed very satisfactorily.
OPPORTUNITY AND RISK REPORT
There have been no significant changes to the company's risk situation since the beginning of the financial year. The disclosures made in the opportunity and risk report in the financial statements at the end of the financial year as at September 30, 2023 therefore continue to apply.
FORECAST REPORT
At this point in time, we are sticking to our forecast: for the 2023/2024 financial year, sales are now expected to increase slightly year-on-year to between € 18.0 million and € 18.5 million. In addition to the slight increase in sales with the customer Hologic, sales in the lung and liver area are also expected to rise slightly. We expect a slight decline in the area of development services. For earnings before interest and taxes (EBIT), we expect stability in the range of € 4.5 million to € 5.0 million. The forecast slight growth in sales and the simultaneous increase in personnel costs and other operating expenses are key drivers for the EBIT outlook.
As in the previous reporting period, the Management Board will regularly review its expectations over the course of the 2023/2024 financial year on the basis of current business developments.
Bremen, May 27, 2024
Marcus Kirchhoff
Sole Executive Board Member
MeVis Medical Solutions AG | Page 6 |
Interim Report H1 2023/2024
BALANCE SHEET
of MeVis Medical Solutions AG, Bremen, as of March 31, 2024
ASSETS (IN €) | 31.03.2024 | 30.09.2023 |
-
Fixed assets
I. Intangible assets
Purchased concessions, industrial property rights and similar rights and assets as well as licenses to such rights and assets
- Property, plant and equipment Operating and office equipment
- Financial assets
- Shares in affiliated companies
- Loans to affiliated companies
0.000.00
305,693.13146,057.36
299,805.00312,042.00
16,225,211.69 16,225,211.69
16,525,016.69 16,537,253.69
16,830,709.82 16,683,311.05
B. Current assets
- Receivables and other
assets | |||
1. | Trade receivables | 2,355,159.69 | 2,651,876.35 |
2. Receivables from affiliated
companies | 681,356.33 | 616,184.59 | ||||||||||
3. Other assets | 264,599.37 | 313,640.37 | ||||||||||
3,301,115.39 | 3,581,701.31 | |||||||||||
II. | Cash on hand, | |||||||||||
bank balances | 4,872,491.43 | 7,743,883.96 | ||||||||||
8,173,606.82 | 11,325,585.27 | |||||||||||
- Prepaid expenses and deferred charges
126,282.5545,050.22
25,130,599.19 28,053,946.54
page 7 | MeVis Medical Solutions AG |
Interim Report H1 2023/2024
LIABILITIES (IN €) | 31.03.2024 | 30.09.2023 |
-
Equity capital
I. Subscribed capital
Subscribed capital
II. | Capital reserve | ||
III. | Retained earnings | ||
1. | Legal reserve | 5,000.00 | |
2. | Other retained earnings | 4,539,688.30 | |
B. Provisions | |||
1. | Pension provisions | 256.407.53 | |
2. | Tax provisions | 0.00 | |
3. | Other provisions | 2.430.506.84 | |
1,820,000.00 1,820,000.00
11,461,332.4811,461,332.48
5,000.00
4,539,688.30
4,544,688.30 4,544,688.30
17,826,020.7817,826,020.78
265,626.00
165,134.47
2,948,630.92
2,686,914.37 3,379,391.39
C. Liabilities | |||||||
1. | Advance payments received on orders | 7.920.67 | 14,512.82 | ||||
2. | Liabilities from deliveries and services | 53.487.05 | 76,739.81 |
3. Liabilities to affiliated companies
The company | 2.661.393.29 | 4,920,981.90 | |||||||||
4. | Other liabilities | 158.356.86 | 191,312.34 | ||||||||
2,881,157.87 | 5,203,546.86 | ||||||||||
D. Prepaid expenses and deferred charges | 1,736,506.17 | 1,644,987.51 | |||||||||
25,130,599.19 | 28,053,946.54 | ||||||||||
MeVis Medical Solutions AG | Page 8 |
Interim Report H1 2023/2024
PROFIT AND LOSS ACCOUNT
of MeVis Medical Solutions AG, Bremen, for the period from October 1, 2023 to March 31, 2024
FIGURES IN € | 2023/2024 | 2022/2023 |
- Sales revenue
- Other operating income
- Cost of materials
8,774,409.11 | 8,472,290.14 |
651,955.39 | 625,747.58 |
a) | Expenses for purchased goods | 34,506.89 | 35,425.01 | ||||||
b) | Expenses for purchased services | 215,639.75 | 173,049.50 | ||||||
250,146.64 | 208,484.51 |
4. Personnel expenses
a) | Wages and salaries | 4,249,997.73 | 3,971,064.53 | ||||||||
b) | Social security contributions and ex- | ||||||||||
penses for pensions and other em- | |||||||||||
ployee benefits | 823,363.13 | 767,890.03 | |||||||||
5,073,360.86 | 4.738.954.56 | ||||||||||
5. Amortization of intangible assets and de-
preciation of property, plant and equip- | ||||||||||
ment | 63,320.55 | 47,521.16 | ||||||||
6. | Other operating expenses | 1,947,141.62 | 2,834,330.65 | |||||||
7. | Income from loans classified as financial | |||||||||
assets | 528,336.59 | 542,470.24 | ||||||||
8. | Other interest and similar income | 114,708.13 | 81,894.23 | |||||||
9. | Taxes on income and earnings | 74,046.26 | 64,099.60 | |||||||
10. | Earnings after taxes | 2,661,393.29 | 1,829,011.71 | |||||||
11. | Profit to be transferred on the basis of a | |||||||||
profit transfer agreement | 2,661,393.29 | 1,829,011.71 | ||||||||
12. | Profit for the period | 0.00 | 0.00 |
page 9 | MeVis Medical Solutions AG |
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MeVis Medical Solutions AG published this content on 27 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2024 10:06:02 UTC.
