The exceptional operational delivery across the Group in H1 24 resulted in record revenues of £35.6m, 30.6% higher than H1 2023.
The company opened our new state-of-the-art facility in Canary Wharf during the period which supported the expedited delivery of multiple projects across multiple quarantine facilities, resulting in a H1 weighting for the year. The acceleration of several projects contributed to a faster conversion of contracted orderbook versus previous periods, as such we ended the period with £71m weighted orderbook.
The Group has a strong pipeline of live opportunities which it continues to expand including interest in new challenge models and new revenue streams with short to medium term potential opportunities of c. £40 million.
The Group also achieved record EBTIDA margins; EBTIDA was up 67.6% on H1 2023 to £8.7m, this 24.5% EBITDA margin was achieved through the efficient running of multiple sites during the period along with the increasing automation across the business including FluCamp which has resulted in reduced cost of volunteer recruitment.
hVIVO has expanded its service offering on the back of the move to Canary Wharf which provides new revenue streams to the Company while also driving efficiency by improving staff utilisation and using existing capabilities such as FluCamp and hLAB which will support the Group as it works towards its 2028 revenue target of £100m. We were awarded our largest field study contract to date this year, as well as hLAB’s largest field study contract for standalone lab services.
After a strong first half delivering record revenues and margins, hVIVO has its full year revenue guidance of £62m fully contracted with good visibility into 2025 and has guided that full year EBITDA margins anticipated to be at the upper end of market expectations
Financial highlights
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Revenue of £35.6 million, 30.6% higher than H1 2023 (£27.3 million) |
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EBITDA up 67.6% to £8.7 million (H1 2023: £5.2 million) |
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EBITDA margin of 24.5% (H1 2023: 19.1%) |
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Basic adjusted earnings per share up 30.6% to 0.81p (H1 2023: 0.62p) |
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Cash of £37.1 million as at 30 June 2024 (H1 2023: £31.3 million) |
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Weighted contracted orderbook of £71 million as at 30 June 2024 (H1 2023: £78 million) |
Operational highlights
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State-of-the-art facility in Canary Wharf opened and fully operational providing the foundation and capacity for future growth |
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A record number of volunteers inoculated in H1 across six challenge trials and five challenge agents |
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Expedited delivery of projects leading to: 1) increased utilisation of multiple quarantine facilities, 2) record revenues and margins and, 3) H1 revenue weighting |
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Greater use of automation at FluCamp resulting in efficiency and reduced cost of volunteer recruitment |
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£6.3 million Human Rhinovirus (HRV – common cold virus) contract signed with biotech client |
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£2.5 million Omicron characterisation study contract with mid-sized pharmaceutical company |
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Awarded largest field study to date representing a new income stream |
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Venn expanded its multi-year consultancy agreement with major global pharmaceutical client |
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Human Metapneumovirus (hMPV) challenge agent successfully manufactured and ready for partnering on a characterisation study |
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Additional supply of Respiratory Syncytial Virus (RSV) challenge agent successfully manufactured |
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Flu B challenge model established following the successful completion of the characterisation study |
Post-period end highlights
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Completion of the fit-out of the Company’s larger outpatient site at Plumbers Row to support clinical site services contracts |
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Completion of the fit-out of the CL-3 laboratory at Canary Wharf providing foundations for new revenue streams |
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First major field study contract signed by hLAB for standalone lab services |
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hLAB’s new laboratory information management system (LIMS) launch expected Q4 2024 |
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FluCamp’s tiered volunteer / patient recruitment service offering launched |
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Successful Capital Markets Day highlighting the capabilities of the world’s largest human challenge unit |
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Industry focussed Canary Wharf opening event attended by Big Pharma and biotech clients, regulators, partners and academic institutions |
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Cancelled trading on Euronext Growth to consolidate trading of the Company’s stock to its primary listing on the AIM Market of the London Stock Exchange |
Outlook
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Full year revenue guidance of £62 million reaffirmed with full year EBITDA margins anticipated to be at the upper end of market expectations* |
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100% of 2024 revenue guidance fully contracted with good visibility into 2025 |
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Pipeline of live opportunities continues to expand including interest in new challenge models and new revenue streams with short to medium term potential opportunities of c. £40 million |
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Targeting Group revenue of £100 million by 2028 achievable through strong organic growth complemented by small bolt-on acquisitions that meet the Company’s strategic and financial criteria, with a robust cash position which underpins the Group’s M&A strategy |
Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO, said: “After an exceptionally strong first half with record revenues and margins, hVIVO enters the remainder of the year with FY24 revenue guidance fully contracted and good visibility into 2025. We continue to expand our pipeline, not only in human challenge trials but also in our new revenue streams including clinical site studies, standalone laboratory services, and volunteer / patient recruitment. Operational efficiencies are set to continue to improve with the expansion of our services, improved automation, and the move to our new facility in Canary Wharf.
“We are pleased to reaffirm our full-year revenue guidance of £62 million and expect EBITDA margins to be at the upper end of market expectations*. We are targeting Group revenue of £100 million by 2028 – this growth will be underpinned by the increased capacity of our facilities, our strong cash position, and our long-term sustainable growth model.”
Investor presentation
Yamin ‘Mo’ Khan, Chief Executive Officer, and Stephen Pinkerton, Chief Financial Officer, will provide a live presentation via the Investor Meet Company platform on 10 September 2024 at 18:00 BST.
The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and add to meet hVIVO here.
* Consensus market expectations for FY24 EBITDA margins are 22.7%, within a range of 22-24%.
For further information please contact:
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hVIVO plc |
+44 (0) 20 7756 1300 |
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Yamin ‘Mo’ Khan, Chief Executive Officer Stephen Pinkerton, Chief Financial Officer |
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