hVIVO (HVO ), a specialist contract research organisation, announced results for the 12 months ended 31 December 2022 (FY22).

Financial performance:

hVIVO reported 30% higher revenue to £50.7m from £39m in FY21. EBITDA increased threefold to £9.1m from £2.9m in FY21, and EBITDA margins increased to 17.9% from 7.4% in FY21, ahead of guidance.

hVIVO's contract orderbook likewise increased by 65% to £76m as of 31 December 2022, from £46m in FY21.

hVIVO's cash and cash eq on 31 December 2022 was £28.4m, up 81% from last year's £15.7m. EPS also increased to 0.90p/share from 0.19p/share in FY21.

hVIVO announced a one-off special dividend of c. £3.0m or 0.45p/share, payable on 9 June 2023.

Operational highlights:

hVIVO delivered 7 challenge studies in 2022, a 32% increase year-on-year.

hVIVO expanded its portfolio with the launch its Malaria and development of Omicron models. The company expanded its facilities in London and Manchester, doubling screening capacity, and its laboratories achieved College of American Pathologists (CAP) accreditation.

Yamin 'Mo' Khan, CEO, commented: "2022 marked a transformative year for hVIVO, as we achieved record financial and operational performance, providing strong validation of our sustainable growth model. With exceptional financial strength, and an impressive orderbook, we are proud to have full visibility of 2023 revenue guidance with strong visibility into H1 2024."

 

View from Vox

Strong results from hVIVO in FY22, reflecting significant growth as the company continues to establish itself as a leader in the field of human challenge studies. hVIVO ended the year with revenues up 30%, 3x higher EBITDA, and margins more than doubling to 17.9%, substantially ahead of market expectations.

Higher EBITDA margins resulted partially from a number of efficiency initiatives, including concurrent running of multiple challenge trials, a flexible booking model, and a re-vamped FluCamp platform. hVIVO also increased trial sizes, entered the APAC market, and began to offer Phase II/III field based studies. 

hVIVO delivered 7 challenge trials in 2022, supported by recently expanded facilities. Its orderbook grew 65% to a record £76m, providing excellent visibility on future revenues into H1 2024. The company remains well-capitalised and debt free with £28.4m in the bank at the end of the year, up 81% from last year.

hVIVO enters FY23 with strong momentum and revenue guidance of £55m for the year, targeting 2023 EBITDA margin in the mid-to-high teens. hVIVO already has at least 95% of its FY23 revenue target contracted.

Strong cash generation in FY22 prompted hVIVO to offer a one-off special dividend of 0.45p/share, payable on 9 June to shareholders on the register on 5 May 2023.

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