hVIVO (HVO) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was £24.2m, down from £35.6m in H1 2024, reflecting sector headwinds, lower HCT activity, and contract delays.

• Integration of CRS (Germany) and Cryostore (London) is nearly complete, delivering sales synergies, operational improvements, and expanded service offerings.

• Diversification into metabolic, renal, hepatic, immunology, dermatology, and obesity trials, with strong pipelines in hLAB and Clinical Services.

• Appointment of Shaun Chilton as independent Non-Executive Chair to strengthen leadership.

• Human challenge clinical trials (HCT) faced significant headwinds due to macroeconomic challenges, regulatory changes, and biotech funding pressures.

Financial highlights

• H1 2025 revenue was £24.2m, with £5.5m from acquisitions; core revenue declined from £35.6m year-over-year.

• EBITDA (pre-exceptionals) was £3.0m, with margin dropping to 12.5% from 24.5% in H1 2024; net EBITDA loss from acquisitions was £0.5m.

• Cash position at period end was £23.3m, down from £37.1m, with no debt; cash reduction mainly due to acquisitions and lower advance receipts.

• Adjusted basic EPS was 0.29p, down from 0.81p in H1 2024.

• Orderbook at £40m, down from £71m in H1 2024, with increased diversification and proposal activity.

Outlook and guidance

• FY25 revenue guidance reiterated at £47m, with low single-digit EBITDA loss expected for the full year.

• High single-digit revenue growth anticipated in 2026 as HCT activity normalises; profitability and cash generation expected in 2027.

• Weighted order book at end of June was £40m, with a strong and diversified sales pipeline.

• CRS expected to become earnings accretive in 2026.

• Long-term target of £100m revenue remains, but timeline is flexible due to market volatility.