hVIVO shares surged on Tuesday after the group announced strong revenue growth, an upbeat outlook, and regular dividends starting this year.
hVIVO, a leader in viral human challenge trials, expects strong revenue growth for 2023 as demand for its specialised studies continues to grow.
The company said its full-year revenue likely reached £56 million, up 15.5% from £48.5 million in 2022. EBITDA margins also expanded to around 22% thanks to higher facility utilisation and efficiency gains.
hVIVO shares were over 7% at the time of writing as investors digested an exemplary trading update.
hVIVO conducts trials where volunteers are intentionally exposed to viruses in controlled settings to test new antiviral products. The highly cash-generative company saw its cash balance hit £37 million at year-end.
Buoyed by new contract wins, hVIVO’s order book swelled to a record £80 million. Investors will be pleased to learn the firm also has strong visibility into 2025. This underpins its 2024 guidance for £62 million in revenue.
hVIVO is moving to a new state-of-the-art facility in Canary Wharf this year to meet rising demand.
Having paid a one-off £3m special dividend in 2023, the company plans to pay an inaugural ordinary dividend in 2024 as it targets £100 million in annual revenue by 2028.
“In 2023, hVIVO demonstrated strong financial and operational performance, delivering record-breaking results across all key parameters. The sustained success of the Group, coupled with a growing orderbook, reinforces the resilience of our business model and reaffirms the stability of the market,” said Dr Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO.
“The infectious disease market has witnessed increased interest from both commercial and non-profit entities, as well as a notable uptick in M&A activity. A significant highlight of the year was the market authorisation of the first-ever vaccine incorporating human challenge trial data as part of its submission package.”