hVIVO PLC (AIM:HVO) chief executive Yamin 'Mo' Khan joined Proactive's Stephen Gunnion with details of the company's strong financial results for 2023, which reflect a period of robust growth and strategic expansion.
Khan highlighted record revenue of £56 million, a 15% year-on-year increase. He attributed the growth to the successful execution of their existing human challenge trial models and the expansion of their clinical consulting services.
The company's EBITDA margins stand at 22%, with an overall EBITDA increase of over 30% compared to the previous year. Khan stressed the importance of hVIVO's subsidiaries in contributing to these strong financial outcomes. Despite challenges posed by MHRA issues impacting clinical trials in the UK, the company's performance remained resilient.
A notable achievement for hVIVO is its burgeoning order book, valued at £80 million at year-end, the highest in the company's history. This figure represents a weighted estimate, ensuring a more prudent and accurate forecast of revenue recognition. This strong order book provides over 90% visibility for 2024, with revenues already booked for 2025.
Looking ahead, hVIVO forecasts a revenue of £62 million for 2024. The company plans to introduce three new challenge models and relocate to a new facility in Canary Wharf. These steps, along with a diversified product and service offering, position the company for further growth.
Khan also announced the launch of an annual dividend, following the company’s first special dividend of £3m in 2023, backed by a healthy cash balance of £37 million. The company's short and midterm goals include strategic mergers and acquisitions to leverage current business and tap into new revenue streams.
hVIVO aims to achieve a revenue target of £100 million by 2028, primarily through expanded human challenge trials and early clinical development consulting services.
