hVIVO gathered momentum in the first half of 2024 achieving a 30.6% increase in revenue to £35.6 million compared to £27.3 million in the same period last year.
The company’s EBITDA margin has also seen a significant boost, rising to approximately 24% from 19.1% in H1 2023. This improvement is attributed to enhanced operational efficiencies and better utilisation of quarantine facilities.
UK Investor Magazine recently included hVIVO in our ‘Four UK Small Cap Growth Shares to Watch Summer 2024’. Today’s results highlight just why we included hVIVO.
The combination of higher revenue and operational strength saw hVIVO reaffirm its full-year revenue guidance of £62 million. hVIVO has set a medium-term revenue target of £100 million by 2028.
Investors will be pleased to see the company’s contracted orderbook at £71 million as of 30 June 2024, providing good visibility into 2025. Notably, 100% of the full-year 2024 revenue guidance is already contracted.
hVIVO’s new facility in Canary Wharf is now fully operational, positioning the company for future growth. This state-of-the-art quarantine facility offers increased capacity and containment level 3 capability, allowing hVIVO to expand its core human challenge trial offering to include new pathogen models.
hVIVO continues to diversify its service offering, which is expected to positively impact growth and margins. New services include Phase II and Phase III field studies, volunteer recruitment services, and standalone hLAB services.
In a significant development, hVIVO recently secured its largest field study contract to date. The company has been selected as the sole UK clinical site for a multicentre study, with plans to enrol up to 1,000 volunteers.
“The results of H1 2024 reflect the hard work, flexibility and commitment of the team. During a period of significant activity including the build-out and move to a new facility, we have not only materially increased our revenue but also further improved our margins. The concurrent running of three different facilities helped to boost our revenues for H1 2024, creating an expected H1 2024 weighting,” said Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO.
“We have full visibility over our expected 2024 revenues and continue to deliver on our sustainable growth strategy. The orderbook remains strong in spite of record revenue delivery in H1 2024. The recent Omicron characterisation study contract and the award of our largest field study to date are two key sales highlights for H1 2024. In addition, the current sales pipeline includes several advanced stage opportunities that we expect to convert in the coming months.
“The outlook for hVIVO is positive as we welcomed our first volunteers into our new facility at Canary Wharf – the world’s largest human challenge trial unit. I believe we have laid the foundations for strong performance in the months and years ahead.”