hVIVO PLC on Tuesday said profit for its interim results had risen more than 70%, as an ‘exceptionally strong’ first half brought about an increase in revenue and margin expectations.
The London-based contract research organisation tests vaccines for infectious and respiratory diseases. It reported that pretax profit for the six month period ended June 30 rose 71% to £7.2 million from £4.2 million at the same time last year. Revenue was £35.6 million, a 31% rise from £27.3 million.
During the six-month period, hVIVO opened a new facility in Canary Wharf; inoculated a record number of volunteers across six challenge trials and five challenge agents; expedited the delivery of its projects, which led to increased utilisation of multiple quarantine facilities, record revenues and margins and first half revenue weighting.
hVIVO also signed a £6.3 million contract with a biotechnology client to research human rhinovirus, also known as the common cold virus, as well as a £2.5 million contract with a mid-sized pharmaceutical company for an Omicron characterisation study.
Since June, hVIVO has cancelled its trading on Euronext Growth to consolidate the trading of the company’s stock to its primary listing on the AIM Market of the London Stock Exchange.
Chief Executive Officer Yamin Khan said: ‘After an exceptionally strong first half with record revenues and margins, hVIVO enters the remainder of the year with financial 2024 revenue guidance fully contracted and good visibility into 2025. We continue to expand our pipeline, not only in human challenge trials but also in our new revenue streams including clinical site studies, stand-alone laboratory services, and volunteer / patient recruitment. Operational efficiencies are set to continue to improve with the expansion of our services, improved automation, and the move to our new facility in Canary Wharf.
‘We are pleased to reaffirm our full-year revenue guidance of £62 million and expect [earnings before interest, taxation, depreciation and amortisation] margins to be at the upper end of market expectations. We are targeting group revenue of £100 million by 2028 - this growth will be underpinned by the increased capacity of our facilities, our strong cash position, and our long-term sustainable growth model.’
Consensus market expectations for financial 2024 Ebitda are 23%, within a range of 22-24%.
Shares in hVIVO were up 3.3% at 29.65 pence each in London on Tuesday afternoon.
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