REG - hVIVO PLC - Trading update

hVIVOAnnouncement

29/01/2025 07:00

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RNS Number : 0298V  hVIVO PLC  29 January 2025

hVIVO plc

("hVIVO", the "Company" or the "Group")

 

Trading update

Record performance in 2024

 

hVIVO plc (AIM: HVO), a fast-growing specialist early-stage drug development
contract research organisation (CRO) and world leader in testing infectious
and respiratory disease products using human challenge clinical trials,
provides an unaudited trading update for the year ended 31 December 2024.

 

Highlights

·    Revenue up 11.9% to £62.7 million (2023: £56.0 million)

·    EBITDA margin of c.26% (2023: 23.3%)

·    Cash of £44.2 million as at 31 December 2024 (31 December 2023:
£37.0 million)

·    World's largest commercial human challenge trial unit opened to meet
client demand

·    Record number of volunteers inoculated across seven challenge agents

·    Expansion of human challenge model portfolio

·    Diversification of revenue streams with strong delivery in new
services

 

*Commentary on 2025 and 2026 outlook and orderbook is included in today's
other announcement regarding the Company's acquisition of two Clinical
Research Units from CRS.

 

Double-digit revenue growth with efficiency gains benefitting margins and cash
generation

 

The Group expects to report record revenues of £62.7 million for FY24, an
11.9% increase on the prior year, and full year EBITDA margins of c.26% (2023:
23.3%). The significant uplift in revenue and margins was driven by strong
operational delivery including recruitment of record number of human challenge
trial (HCT) participants and improved utilisation rates (particularly in
H124), delivery of the Group's largest Phase II field study to date, and
recognition of £4.3 million client funding towards the new Canary Wharf
facility to accelerate delivery of client studies.

 

In 2024, the Group successfully delivered on its growth strategy to optimise,
scale and diversify its revenue streams. The Group successfully opened the
world's largest commercial HCT unit, a state-of-the-art 50-bedroom CL-3
facility. This milestone enabled the Group to inoculate the highest number of
participants to date in its HCT studies, across seven challenge agents. The
Group benefitted from the availability of three quarantine facilities in H124
which led to the delivery of several projects ahead of schedule, enhancing
revenues and margins.

 

The new site also facilitated the diversification of the Company's revenue
streams to include standalone laboratory, field study, and participant
recruitment services. The Group saw strong and immediate success in these
newly launched services in 2024, with five standalone laboratory services
signed and a 99% growth in hLAB proposals within a 12-month period. The Group
delivered its largest Phase II field study contract to date, supported by the
expansion of its outpatient facility at Canary Wharf and at Plumbers Row in
which FluCamp, the Company's volunteer recruitment platform, enrolled 817
participants in just over six weeks providing significant validation to the
Group's ability to provide excellent results for clients in these types of
large and complex studies with very strong client feedback received.

 

In addition, hVIVO expanded and updated its human challenge model portfolio in
2024. This includes completing the world's first influenza B HCT and the
successful manufacture and completion of a pilot characterisation trial for
its new hMPV human challenge model. hVIVO also contracted an Omicron
characterisation study, as well as developing a number of new challenge models
including influenza H1N1 and H3N2, and RSV A and RSV B.  The Group
implemented a programme of new software systems, driving efficiency gains.
This includes FluCamp's new Volunteer Management System, which succeeded in
delivering a record number of participants for the Group's studies with a
significant decrease in advertising spend versus 2023.

 

The Group's cash position as at 31 December 2024 was £44.2 million (31
December 2023: £37.0 million), underlining the strength of hVIVO as a cash
generative business.

 

The Company expects to release its results to 31 December 2024 in mid-April
2025 and will confirm the date in due course.

 

Dr Yamin 'Mo' Khan, Chief Executive Officer of hVIVO plc, said: "2024 was a
tremendous year for the Group, with the delivery of record revenue and EBITDA
margins as well as laying broader foundations for future growth. These record
financials were achieved in a year when the Company completed the move to the
world's largest commercial human challenge trial unit, developed a number of
new challenge models, launched three new service lines, and implemented a
number of new software systems. This is all a testament to the hard work and
expertise of our world-leading team.

 

"Our newly launched services executed in our existing infrastructure,
benefited our margins and cash generation. I am impressed with how well these
new services are performing since their recent launch and this, combined with
the expansion of our human challenge offering and strategic M&A (with our
first acquisition announced today), has enhanced our ability to deliver
revenues of £100 million by 2028."

 

Analyst briefing

 

A briefing open to sell-side equity analysts will take place on Wednesday 29
January 2025 at 11.00 am GMT. To register and for more details please contact
Walbrook PR on hvivo@walbrookpr.com.

 

Investor presentation

 

Yamin 'Mo' Khan, Chief Executive Officer, and Stephen Pinkerton, Chief
Financial Officer, will provide a live presentation relating to the trading
update and acquisition via the Investor Meet Company platform on Wednesday 29
January 2025 at 5.00pm GMT.

 

Investors can sign up to Investor Meet Company for free and add to meet hVIVO
here (https://www.investormeetcompany.com/hvivo-plc-1/register-investor) .
Investors who already follow hVIVO on the Investor Meet Company platform will
automatically be invited.

 

 

For further information please contact:

 

 hVIVO plc                                       +44 (0)20 7756 1300
 Yamin 'Mo' Khan, Chief Executive Officer

 Stephen Pinkerton, Chief Financial Officer

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)                  +44 (0)20 7220 0500
 Geoff Nash, Camilla Hume, Harriet Ward

 Nigel Birks - Life Science Specialist Sales

 Louise Talbot - Sales

 Peel Hunt LLP (Joint Broker)                                        +44 (0)20 7418 8900
 James Steel, Dr Christopher Golden

 Davy (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

 Paul McManus / Phillip Marriage /               +44 (0)7980 541 893 / +44 (0)7867 984 082 /

Louis Ashe-Jepson
+44 (0)7747 515 393

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
("MAR") EU no.596/2014. Upon the publication of this announcement via
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

 

 

Notes to Editors

 

hVIVO plc (http://www.hvivo.com) (ticker: HVO) is a fast-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 Group has
world class challenge agent manufacturing capabilities, specialist drug
development and clinical consultancy services via its Venn Life Sciences
(https://www.vennlifesciences.com/) brand, and a lab offering via its hLAB
(https://hlabservices.com/) brand, which includes virology, immunology
biomarker and molecular testing. The Group also offers additional clinical
field trial services such as patient recruitment and clinical trial site
services.

 

hVIVO runs challenge trials in London - its new state-of-the-art facilities
in Canary Wharf opened in 2024 and is the world's largest commercial human
challenge trial unit, with highly specialised on-site virology and immunology
laboratories, and an outpatient unit. To recruit volunteers / patients for its
studies, the Group leverages its unique clinical trial recruitment capability
via its FluCamp (http://www.flucamp.com/) volunteer screening facilities
in London and Manchester.

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