hVIVO PLC on Tuesday launched an annual dividend policy, as it swung to profit on the back of higher revenue and a tax credit.

The London-based contract research organisation testing vaccines for infectious and respiratory diseases swung to a pretax profit of £11.1 million in 2023 from a loss of £365,000 in 2022.

hVIVO announced the start of an annual dividend policy, with a payout of 0.20 pence per share for 2023, worth £1.4 million in total. The annual dividend is in addition to a special dividend of £3.1 million paid in 2023.

Revenue climbed 16% to £56.0 million from £48.5 million, while direct project and administrative costs increased by only 9.6% to £45.6 million from £41.6 million. What’s more, the company reported no loss on impairment on investment in an associate, compared to a £7.0 million such loss in 2022.

hVIVO also swung to a post-tax profit of £16.1 million from a loss of £776,000. This was further aided by a £5.0 million tax credit in 2023 compared to a tax charge of £411,000 in 2022.

Looking ahead, hVIVO said it expects revenue to grow 11% to £62 million in 2024, which it added will be first half-weighted. It said that 90% of 2024 revenue guidance has already been contracted with ‘good visibility into 2025’. Its weighted contract orderbook stood at £80 million as of December 31, up from £76 million a year before.

Chief Executive Officer Yamin Khan said hVIVO is in a ‘strong’ position to deliver its ‘medium-term objective of reaching £100 million in revenue by 2028’.

Chair Cathal Friel added: ‘The group continues to evaluate opportunities to optimise its business model and diversify its revenue streams via organic and inorganic means to take advantage of this significant opportunity, helping both grow the human challenge trials market and further cement hVIVO’s position as the global leader.’

hVIVO shares were down 3.7% to 28.33 pence each midday Tuesday in London.

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