hVIVO (LSE:HVO) Aims for GBP 100 Million Revenue by 2028, Backed by Growth and Strategic Acquisitions

Highlights

• In H1 2024, hVIVO set a record for the highest number of volunteers inoculated
• The company’s H1 FY24 revenue surged 30.6% and operating profit increased by 88.7%
• hVIVO targets GBP 100 million in revenue by 2028 through growth and strategic acquisitions

hVIVO PLC (LSE:HVO) is a rapidly growing contract research organization (CRO) listed on the FTSE AIM 100 Index. The company specialises in testing vaccines and treatments for infectious and respiratory diseasesThey conduct these tests through human-challenge clinical trials.

In the first half of 2024, hVIVO set a record by inoculating the highest number of volunteersIt conducted six challenge trials on five different challenge agentsThis accomplishment highlights the company’s expertise in managing multiple concurrent trials, boosting both revenue and margin growth.

The move to a new facility with 50 CL-3 standard quarantine rooms has significantly expanded hVIVO's trial capabilities, including those for Hazard Group 3 pathogens that previously required external sitesAs a result, the company's revenue for H1 FY24 increased by approximately 30.6% compared to the previous period, while operating profit surged by 88.7%.

Further, HVO had a net margin of 14.8% and ROE of 14.4% in H1 FY24 compared to the industry median of 7.5% and 2.6%, respectively.

Company Outlook

hVIVO has confirmed its full-year revenue guidance of GBP 62 millionFurther, it expects EBITDA margins to be at the upper end of market expectationsThe company has secured all its 2024 revenue and has strong visibility into 2025Its pipeline of active opportunities is expanding, with potential new challenge models and revenue streams estimated at approximately GBP 40 million in the short to medium termhVIVO aims to achieve GBP 100 million in Group revenue by 2028 through robust organic growth and strategic small acquisitions, backed by a solid cash position to support its M&A strategy.

Top 10 Shareholders:

The top 10 shareholders of hVIVO together account for approximately 34.46% of the total shareholdingsOctopus Investments Limited holds the largest stake at around 8.00%, followed by JPMorgan Asset Management U.KLimited with approximately 7.04%The chart below illustrates these holdings.

 

Stock Information

The stock has risen approximately 4.41% over the last three months and has gained about 27.64% over the last nine monthsIt has a 52-week low of GBX 16.75 and a 52-week high of GBX 32.00, and is currently trading above the average of these 52-week high and low values.

Note 1: Past performance is not a reliable indicator of future performance
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 16 September 2024The reference data in this report has been partly sourced from REFINITIV