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hVIVO plc (LSE:HVO), a leading specialist contract research organisation (CRO) focused on testing infectious and respiratory disease products using human challenge trials, has released its unaudited interim results for the six months ending 30 June 2024.
Financial Highlights
- Revenue Growth: hVIVO reported revenue of £35.6 million, marking a 30.6% increase from £27.3 million in H1 2023.
- EBITDA Surge: EBITDA jumped by 67.6% to £8.7 million, up from £5.2 million in the prior year.
- EBITDA Margin: The company’s EBITDA margin improved significantly to 24.5%, compared to 19.1% in H1 2023.
- Earnings Per Share: Basic adjusted earnings per share rose by 30.6% to 0.81 pence (H1 2023: 0.62 pence).
- Cash Position: hVIVO held a cash balance of £37.1 million as of 30 June 2024, up from £31.3 million at the same point last year.
- Orderbook: The weighted contracted orderbook stood at £71 million as of 30 June 2024, down slightly from £78 million in H1 2023.
Outlook
hVIVO reaffirmed its full-year revenue guidance of £62 million, with expectations that EBITDA margins will be at the upper end of market forecasts. The company has already fully contracted 100% of its 2024 revenue guidance and maintains solid visibility into 2025.
The pipeline of opportunities continues to grow, with potential revenue streams from new challenge models and short to medium-term opportunities estimated at around £40 million. Additionally, hVIVO is targeting group revenue of £100 million by 2028. This target is expected to be achieved through strong organic growth, supplemented by small bolt-on acquisitions aligned with the company’s strategic and financial goals. The company’s robust cash position further supports its mergers and acquisitions (M&A) strategy.
