hVIVO PLC reported annual revenue of £46.7 million, which met market expectations, prompting City brokers to evaluate whether the clinical research organisation has begun to reverse its fortunes after a challenging year.
Peel Hunt adopted a constructive stance, emphasising the strength of the fourth-quarter performance, enhanced cost discipline, and the contribution of cancellation fees with no associated variable costs. The broker highlighted the successful integration of CRS Mannheim, CRS Kiel, and Cryostore, which has established four fully operational service lines and enabled the contract research services division to generate cash in the final quarter. Peel Hunt analysts expressed encouragement regarding the change in management tone and execution quality, maintaining an ‘add’ rating alongside a 10p target price.
Shore Capital identified early signs of recovery in the update, observing that adjusted EBITDA is now projected to deliver a modest profit rather than the previously anticipated loss, whilst cash reserves exceeded expectations. The broker suggested that sentiment should improve once a recovery in human challenge trial contract wins becomes evident, reaffirming a buy recommendation based on the company’s longer-term prospects.
Cavendish drew attention to the stronger second half performance and improved cash position, reiterating guidance for high single-digit revenue growth during the 2026 financial year. Stifel acknowledged that revenues declined 25% year on year, reflecting ongoing sector-wide weakness in the human challenge trial market. Nevertheless, the broker underscored a better than expected profit outcome, with adjusted EBITDA of approximately £1 million surpassing both guidance and consensus forecasts. This result supported a stronger closing cash balance of £14.3 million.
Stifel analysts attributed the EBITDA outperformance to rigorous cost control and cancellation fees, characterising the latter as high margin yet low quality. Analyst James Orsborne stated that the shares require a clearer demonstration of robust demand recovery for human challenge trials, consequently maintaining a ‘hold’ rating.
The company informed investors that it anticipates reporting revenue of approximately £46.7 million for the calendar year, consistent with market expectations. The earnings margin on an adjusted EBITDA basis is expected to register a low positive single digit figure, ahead of previous guidance. This outcome reflects stronger than anticipated fourth quarter performance and disciplined cost management. The contract research company concluded the year with £14.3 million of cash and no debt.
Management reported that the sales pipeline strengthened during the second half of the year, incorporating potential new projects such as the ILiAD Phase III trial. Proposal volumes submitted in 2025 exceeded those of 2024. Guidance for high single digit revenue growth in 2026 was maintained.
Chief executive Yamin ‘Mo’ Khan commented that he was pleased to update the market on expectations to report positive adjusted EBITDA ahead of guidance for the 2025 financial year. He attributed this to stronger than expected operational delivery in the fourth quarter of 2025 and the contractual protections embedded within the business model. Khan added that the company is realising synergies across its four specialist service lines, with purpose built full service early phase capabilities providing clear market differentiation. Combined with a strong and diverse pipeline, this supports reiterated guidance for high single digit revenue growth in 2026.
The acquisitions and integration of CRS Mannheim, CRS Kiel and Cryostore were completed during 2025. These additions have enabled the business to offer services spanning preclinical to Phase III clinical development. The company now operates across four specialist service lines, comprising Consulting, Clinical Trials, Human Challenge Trials and Laboratories, all of which are fully operational.
