hVIVO PLC (AIM:HVO), a pioneering company in the human challenge trials industry, has achieved record-breaking financial results for 2023. The company reported a 16% year-on-year increase in revenue, reaching an impressive £56 million, surpassing previous guidance. Additionally, hVIVO’s EBITDA margin rose from 18.7% to 23.3%, contributing to an absolute EBITDA of £30 million, a 44% increase from the previous year.
Yamin ‘Mo’ Khan, the chief executive of hVIVO, attributed the company’s success to conducting more human challenge trials, leading to improved patient recruitment efficiency and better utilization of facilities and staff. Despite facing challenges such as MHRA delays, significant funding for a new Canary Wharf facility positively impacted the financial results.
In a testament to its strong performance, hVIVO initiated an annual dividend policy, planning to distribute £1.4 million in dividends following a year of robust cash generation. The development of the Canary Wharf facility, which includes a 50-bed quarantine facility and a laboratory, is ahead of schedule and is set to be fully operational by the end of July. This expansion is expected to enhance operational efficiency, increase revenue potential to up to £95 million, and strengthen hVIVO’s position in the human challenge trial industry globally.
For the upcoming year, hVIVO anticipates hitting a £62 million revenue target, with a robust pipeline supported by a £180 million weighted order book. Despite a study cancellation, the company remains confident in achieving its revenue and EBIT margin targets.
Looking ahead, hVIVO aims for an ambitious £100 million revenue target by 2028, driven by expanding its human challenge trials, increasing clinical trial services, and exploring M&A activities. With a strong cash reserve, the company is well-positioned to capitalize on growth opportunities and solidify its position as a leader in the industry.
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