Proactive Investors - hVIVO PLC (LON:HVO), a specialist in human challenge clinical trials for infectious and respiratory diseases, has reaffirmed its full-year revenue guidance of £53mln for 2023, despite industry-wide delays in UK clinical trial approvals. The company also expects EBITDA margins to be in the mid to high teens.
The company's confidence is underpinned by a strong first-half performance, with revenues surging 52% to £27.3mln, excluding other income like R&D tax credits.
The robust growth was driven by an increase in the number of human challenge trials and a rise in total contract value. Operational efficiencies and the execution of multiple larger trials have also boosted the EBITDA margin to around 19%.
hVIVO's net cash position as of 30 June 2023 stood at £31.3mln, nearly double the £15.9mln recorded in the same period last year. This follows the payment of a £3.0mln special dividend in June.
The company's weighted contracted order book has grown 11% to £78mln, indicating a continued demand for human challenge trials from the global biopharma industry. This diversified order book, spread across multiple clients and geographies, provides a solid foundation for long-term revenue growth.
"Since the end of June our weighted contracted order book has increased even further following the recent announcement of our new Influenza B human challenge model," said chief executive Mo Khan.
"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."
While the Medicines and Healthcare products Regulatory Authority (MHRA) delays have impacted new trials, hVIVO has implemented contingency plans and is working closely with clients and the MHRA to ensure timely delivery of studies. The company does not expect these delays to materially affect revenue.