hVIVO (HVO) , a contract research organisation specialising in human challenge trials, announced its final results for the year ended December 31, 2024 (FY24).
hVIVO reported an 11.9% year-on-year increase in revenues to £62.7m, up from £56.0m in FY23. EBITDA jumped by 25.9% to £16.4m, while EBITDA margin rose by 3pts to 26.2%. Underlying EBITDA was £13.4m.
hVIVO's basic adjusted EPS was up 33% to 1.69p, while net cash rose by £7.2m to £44.2m as of December 31, 2024. At period-end, the group had a weighted contracted orderbook of £67m post-delivery of £62.7m in the year. Dividend for FY24 stayed flat at 0.2p, excluding a special dividend of 0.45p paid in June 2023.
Operationally, HVO hit a number of key milestones in FY24. Major contracts for human challenge trials signed during the period included a £6.2m HRV deal with a biotech firm, a £2.5m Covid-19 Omicron characterisation study with a mid-sized pharma, and an £11.5m RSV contract with a top-tier global pharma. Additionally, HVO signed 5 hLAB contracts following the launch of standalone services out of the Canary Wharf facility. hLAB saw 99% growth in proposals during the 12-month period.
HVO maintained its FY25 revenue guidance of £73m (H2-weighted), representing another significant uplift. Management is projecting FY25 EBITDA margins in the mid-high teens, reflecting the recent acquisition of Germany-based CRS.
Yamin 'Mo' Khan, CEO of hVIVO, commenting: "2024 demonstrated further evidence of the strength of our long-term sustainable growth model, with record revenue and EBITDA coupled with strong cash generation. An increasing number of global biopharma companies have expressed their interest in our world-leading services, with additional models in various new indications underlining the value that HCTs can offer to the development of innovative new therapies."
View from Vox
hVIVO reports another year of solid growth, with record revenues and EBITDA, excellent operational and financial performance, and strong cash generation reflected in the improved cash balance of £44.2m. A healthy £67m orderbook was bolstered by a stream of new contract wins in Q1, with excellent revenue visibility into FY26. Investors welcomed the results, sending HVO shares 7% higher in early trade.
Performance was driven by strong operational delivery, including the recruitment of a record number of human challenge trial (HTC) participants, delivery of HVO's largest Phase 2 field study to date, and recognition of £4.3m client funding toward the new state-of-the-art facility in Canary Wharf, the largest of its kind. The launch of standalone lab services out of Canary Wharf was a notable success, with 5 standalone lab contracts signed and 99% growth in hLAB proposals within the period.
HVO significantly expanded its human challenge model portfolio in FY24, including the world's first influenza B HCT, and a successful pilot characterisation study for its new hMPV human challenge model. HVO also won a Covid-19 Omicron characterisation study, and is developing new challenge models for influenza H1N1 and H3N2, and RSV A and RSV B. Post-period, HVO signed a letter of intent with ILiAD Biotechnologies for the world's first Phase 3 human challenge trial to assess BPZE1, ILiAD's whooping cough vaccine candidate, which is expected to be HVO's largest HCT to date.
Additionally, hVIVO kicked off its M&A strategy with the acquisition of Germany-based CRS, an early-stage clinical development CRO. The move expanded HVO's services portfolio and established a significant footprint in the EU, with 120 beds across CRS's 2 sites in Germany. Post-period, HVO also acquired Cryostore, a provider of temperature-controlled storage solutions for biological and clinical materials in London, bolstering hVIVO's hLAB offering.
HVO maintained its FY25 revenue guidance of £73m, representing another significant uplift, with management projecting full-year EBITDA margins in the mid-high teens. Excluding the ILiAD contract, 70% of FY25 revenue has already been contracted, giving excellent visibility into FY26.
For FY26, we expect another year of strong revenue growth and profitability, with another material improvement in EBITDA margin. The acquisition of CRS will bring significant cross-selling opportunities, and is expected to be earnings accretive in FY26. HVO is aiming for £100m of revenues by FY28, which is highly achievable given its strong sales momentum and £44.2m cash position.
In a recent interview with Vox Markets, Mo Khan, CEO of hVIVO, discussed the company's performance in 2024 and its strategic outlook for 2025.