REG - hVIVO PLC - Trading update

hVIVOAnnouncement

25/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230125:nRSY7439Na&default-theme=true

RNS Number : 7439N  hVIVO PLC  25 January 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE UK VERSION OF THE MARKET ABUSE REGULATION (EU) NO.596/2014, WHICH FORMS
PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (("UK
MAR").

 

hVIVO plc

("hVIVO" or the "Group")

 

Trading Update

 

EBITDA significantly ahead of expectations

Orderbook growth and improved operational delivery lays strong foundations for
future growth

 

·    Record revenue, up 30% year-on-year to £50.6 million

·    EBITDA margins of no less than 17%, significantly ahead of guidance

·    Cash of £28.4 million as at 31 December 2022

·    Strong contracted orderbook of £76m, up 65% year-on-year

·    Board intention to declare shareholder distribution on publication of
full audited accounts

·    Over 95% of 2023 revenue guidance contracted and visibility into 2024

 

hVIVO plc (AIM & Euronext: HVO) (formerly Open Orphan plc), a rapidly
growing specialist contract research organisation (CRO) and world leader in
testing infectious and respiratory disease products using human challenge
clinical trials, announces a trading update for the period ended 31 December
2022.

 

Significant double-digit revenue growth

 

The Group expects to report record full year revenues of £50.6 million (2021:
£39 million), a 30% increase year-on-year. The significant growth in revenue
provides further validation of the long-term sustainable growth in the human
challenge trial market, for which hVIVO is the world leader.

 

EBITDA margins and cash ahead of expectations

 

The Group expects to report EBITDA margins of not less than 17% (2021: 7.4%),
significantly ahead of previous guidance of 13-15%. The increase in EBITDA is
driven by strong trading in H2 2022 and operational efficiencies leveraged on
the concurrent conduct of multiple challenge trials. In addition, recognition
of postponement and cancellation fees for an aggregate of over £1 million had
a one-time positive impact on EBITDA. The advanced fees from orderbook growth
and efficient operational delivery has resulted in a cash position of £28.4
million as at 31 December 2022 (2021: £15.7 million).

 

Capital distribution

 

The Board intends to make a shareholder distribution in respect of the
financial performance achieved in FY22, details of which will be announced
alongside publication of the Group's audited results for FY22. The
distribution reflects the Group's exceptional cash generation in the year, in
addition to its robust balance sheet.

 

Further contracted orderbook growth enhances revenue visibility

 

In 2022, the trend of larger contracts with biopharma clients continued,
increasing the size of the Group's orderbook to £76 million as at 31 December
2022, up 65% year-on-year (2021: £46 million), and over sixfold since 2020
(2020: £12 million).

 

There has been increased demand for hVIVO's unique full-service human
challenge offering (with three contracts signed in 2022) which also involves
the manufacture of bespoke challenge agents to test products against specific
infectious disease variants, including subvariants that are circulating in the
population. There has also been an increase in average challenge trial
contract value driven by client demand for larger volunteer cohorts as the
biopharma market increasingly recognises the value of human challenge data to
accelerate drug development timelines and de-risk later stage clinical trial
programmes.

 

Current year outlook

 

The Group has entered 2023 well capitalised, debt free, and with record
visibility into the current financial year.  hVIVO is firmly placed to build
on the growth in the human challenge trial market and further strengthen its
position as the world leader in the field. The growing orderbook from new and
existing Big Pharma and biotech clients provides excellent forward visibility
with over 95% of forecasted revenue for 2023 contracted, and further revenue
visibility into 2024. The Board is confident that the Group will continue to
leverage its competitive position amidst favourable market dynamics and
maintain its strong operational execution, orderbook revenue conversion and
focus on profit generation into 2023 and beyond.

 

Yamin 'Mo' Khan, Chief Executive Officer of hVIVO, said: "The record numbers
we have been able to announce today is the result of the hard work by everyone
at hVIVO over the last 12 months. The goal for hVIVO has always been to
establish a long-term sustainable growth model. We now have excellent
profitable momentum, with full year 2022 EBITDA margin and cash significantly
ahead of market expectations, while revenue shows substantial year-on-year
growth. These results signify our successes of 2022 and also lay the
foundations for FY23 and beyond. The record contracted orderbook not only
covers over 95% of the FY23 revenue targets but also gives us visibility well
into 2024.

 

"With the increasing prevalence and severity of infectious and respiratory
diseases, there is a vital need for new vaccines and antivirals; as the human
challenge partner of choice to the global biopharma industry, hVIVO is well
placed to continue to help accelerate the development of these important new
medicines."

 

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 25 January 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
(https://www.investormeetcompany.com/open-orphan-plc/register-investor) .

 

 

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, 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 Marriage /         +44 (0) 7796 794 663 / +44 (0) 7867 984 082 /

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 10+
human challenge models to test a broad range of infectious and respiratory
disease products, 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 capacity via its FluCamp
(https://eur05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.flucamp.com%2F&data=05%7C01%7CCarol.Dalton%40openorphan.com%7Cfb9f1a50aaa9492d81ed08da875cca71%7C131abc777e104bbd90170559abc5d601%7C1%7C0%7C637971129881295595%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=fQdtQTHu9Bo70yRgWcZW5liNTXPYiWl9YayUA01E%2FlA%3D&reserved=0)
 volunteer screening facilities in London and Manchester.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFEDLTISFIV