hVIVO (HVO) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 revenue of GBP 35.6 million, up 31% year-over-year, with EBITDA margin reaching 24.5% (GBP 8.7 million), driven by strong demand for human challenge trials, operational efficiencies, and expanded service offerings.

• Transitioned to a new, state-of-the-art facility in Canary Wharf, increasing capacity by 31% and enabling new revenue streams and CL3 pathogen studies.

• Expanded service offerings through hLAB, biobank, enhanced patient recruitment, field studies, and tiered recruitment via FluCamp.

• Venn Life Sciences contributed 11% of revenue, expanded consultancy, and won new contracts in ATMP and QA services.

• Maintained a debt-free, highly cash-generative position with GBP 37.1 million cash at period end.

Financial highlights

• Revenue grew 31% year-over-year to GBP 35.6 million, with EBITDA up 68% to GBP 8.7 million and margin at 24.5%.

• Basic adjusted EPS was 0.81p, up from 0.62p in H1 2023; cash at period end was GBP 37.1 million.

• Weighted order book at end of June was GBP 71 million, with GBP 40 million in pipeline opportunities.

• Cash generated from operations was GBP 7.6 million, with a GBP 1.4 million dividend paid in May 2024.

• Operating profit reached GBP 6.9 million and net profit was GBP 5.3 million.

Outlook and guidance

• Maintaining full-year 2024 revenue guidance of GBP 62 million, with EBITDA margin expected at the upper end of 22–24%.

• 100% of 2024 revenue guidance is fully contracted, with strong pipeline and visibility into 2025.

• Targeting GBP 100 million in revenue by 2028, supported by new facilities, organic growth, and potential bolt-on acquisitions.

• Confident in pipeline strength and market demand, despite fewer contract signatures in the period.