TIDMHVO
RNS Number : 1733H
hVIVO PLC
26 July 2023
hVIVO plc
("hVIVO" or the "Group")
Trading Update
Strong first half performance and record orderbook
On track to deliver full year guidance and long-term sustainable
growth
hVIVO plc (AIM & Euronext: HVO) , the world leader in
testing infectious and respiratory disease products using human
challenge clinical trials, announces a trading update for the
six-month period ended 30 June 2023.
Highlights
-- First half revenue growth of 52% to GBP27.3 million* (H1 2022: GBP18.0 million)
-- EBITDA margin c.19% (H1 2022: 12.7%)
-- Net cash of GBP 31.3 million as at 30 June 2023 (H1 2022: GBP15.9 million)
-- Weighted contracted orderbook of GBP78 million as at 30 June
2023 (30 June 2022: c.GBP70 million) underpins venue visibility
-- Full year revenue and EBITDA remains in line with expectations
* The Group will now report revenue excluding other income, such
as R&D tax credits. Other income in H1 2023 was GBP1.4 million
(H1 2022: GBP0.9 million).
Strong revenue and robust cash generation
The Group expects to report half year revenues of GBP27.3
million excluding other income (H1 2022: GBP18.0 million), a 52%
increase year-on-year. This growth has been driven through the
delivery of a higher number of human challenge trials with
continued increases in total contract value. In addition to the
revenue generated, the Group also recognised other income relating
to R&D tax credits of GBP1.4 million (H1 2022: GBP0.9 million).
The improved EBITDA margin of c.19% is a result of enhanced
operational efficiencies and concurrent execution of multiple
larger trials . The Group continues to be strongly cash generative
with a cash position of GBP31.3 million as at 30 June 2023 (H1
2022: GBP15.9 million) following the payment of a GBP3.0 million
special dividend on 9 June 2023.
Growing orderbook
As at 30 June 2023, the Group's weighted contracted orderbook
increased to GBP78 million (H1 2022: GBP70 million), an increase of
11%, underlining the continued growth in demand for human challenge
trials from the global biopharma industry. Importantly, the
orderbook is diversified across multiple clients, challenge agents
and geographies, which provides a strong foundation for long term
revenue growth.
Full year outlook
hVIVO is fully contracted to achieve its revenue guidance for
2023 and the Group has a record orderbook giving visibility of
revenue into the second half of 2024, which will allow the
management team to effectively optimise its resources, improve
strategic decision making and enhance its adaptability and
flexibility in managing its revenue pipeline. This coupled with its
track record of excellent operational delivery provides a strong
foundation for future trading.
While there have been industry wide delays in UK clinical trial
approvals by the Medicines and Healthcare products Regulatory
Authority (MHRA), the Board does not currently expect the MHRA
delays to have a material impact on revenue. This delay in
approvals has had some impact on new trials but the Company is
successfully working closely with both its clients and the MHRA to
ensure the timely delivery of studies and has implemented a
contingency plan to mitigate any potential impact.
Based on the current guided timeline for approvals and hVIVO's
contingency plans, the Company reaffirms its guidance of GBP53
million in revenue for 2023 and EBITDA margins in the mid to high
teens. Revenue excludes GBP2 million of other income, such as
R&D tax credits.
Yamin 'Mo' Khan, Chief Executive Officer of hVIVO, said: "I am
pleased to announce another period of excellent growth for hVIVO,
delivering strong revenues, healthy EBITDA and continued cash
generation. Since the end of June our weighted contracted orderbook
has increased even further following the recent announcement of our
new Influenza B human challenge model. This record visibility of
revenue well into the second half of 2024 provides a strong basis
for future trading, as well as additional flexibility and
adaptability to efficiently manage our pipeline.
"I take pride in what the team has achieved and admire their
determination to continue our growth path. It has also been
pleasing to see a number of our clients receive positive outcomes
as a result of conducting challenge trials with us. Coupled with
our current track record of operational delivery, the Board is
confident that the Group will achieve its full year revenue and
EBITDA expectations."
Investor presentation
Yamin 'Mo' Khan, Chief Executive Officer, and Stephen Pinkerton,
Chief Financial Officer, will provide a live presentation via the
Investor Meet Company platform on 26 July 2023 at 18:00 BST.
The presentation is open to all existing and potential
shareholders. Investors can sign up to Investor Meet Company for
free and add to meet hVIVO here.
For further information please contact:
hVIVO plc +44 (0) 20 7756 1300
Yamin 'Mo' Khan, Chief Executive
Officer
Stephen Pinkerton, Chief Financial
Officer
Liberum Capital (Nominated Adviser and
Joint Broker) +44 (0) 20 3100 2000
Ben Cryer, Edward Mansfield, Phil Walker,
Will King
finnCap plc (Joint Broker) +44 (0) 20 7220 0500
Geoff Nash, Charlie Beeson (Corporate
Finance)
Nigel Birks, Harriet Ward (ECM)
Davy (Euronext Growth Adviser and Joint
Broker) +353 (0) 1 679 6363
Anthony Farrell, Niall Gilchrist
Walbrook PR (Financial PR & IR) +44 (0) 20 7933 8780 or hvivo@walbrookpr.com
Stephanie Cuthbert / Phillip +44 (0) 7796 794 663 / +44 (0) 7867 984
Marriage / 082 /
Louis Ashe-Jepson +44 (0) 7747 515 393
Notes to Editors
hVIVO plc (ticker: HVO) (formerly Open Orphan plc) is a rapidly
growing specialist contract research organisation (CRO) and the
world leader in testing infectious and respiratory disease vaccines
and therapeutics using human challenge clinical trials. The Group
provides end-to-end early clinical development services to its
large, established and growing repeat client base, which includes
four of the top 10 largest global biopharma companies.
The Group's fast-growing services business includes a unique
portfolio of 11 human challenge models, with a number of new models
under development, to test a broad range of infectious and
respiratory disease products. The Company has world class challenge
agent manufacturing, specialist drug development and clinical
consultancy services via its Venn Life Sciences brand, and a lab
offering via its hLAB brand, which includes virology, immunology
biomarker and molecular testing. The Group offers additional
clinical field trial services such as patient recruitment and
clinical trial site services.
hVIVO runs challenge studies in London from its Whitechapel
quarantine clinic, its state-of-the-art QMB clinic with its highly
specialised on-site virology and immunology laboratory, and its
clinic in Plumbers Row. To recruit volunteers / patients for its
studies, the Company leverages its unique clinical trial
recruitment capability via its FluCamp volunteer screening
facilities in London and Manchester.
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END
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July 26, 2023 02:00 ET (06:00 GMT)
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