hVIVO achieves record revenue and initiates dividend policy following successful year
London, UK
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April 09, 2024 07:51 AM Eastern Daylight Time
hVIVO PLC (AIM:HVO) chief executive Yamin 'Mo' Khan discusses the company's record-breaking financial results in 2023 in an interview with Proactive's Stephen Gunnion.
hVIVO announced a 16% year-on-year growth in revenue, reaching £56 million, with an EBITDA margin increase from 18.7% to 23.3%, surpassing prior guidance. The company's absolute EBITDA rose to £30 million, a 44% increase from the previous year.
Khan attributed the success to hVIVO conducting more human challenge trials, leading to improved patient recruitment efficiency and better utilisation of facilities and staff. Despite challenges such as MHRA delays, significant funding for a new Canary Wharf facility positively impacted the financial results. hVIVO also initiated an annual dividend policy, planning a £1.4 million dividend distribution following a strong cash generation year.
The Canary Wharf facility's development, notably ahead of schedule, includes a 50-bed quarantine facility and a laboratory, set to be fully operational by the end of July. This expansion is expected to enhance operational efficiency, increase revenue potential to up to £95 million, and strengthen hVIVO's position in the human challenge trial industry globally.
For 2024, the company anticipates hitting a £62 million revenue target, with £180 million in the weighted order book ensuring a robust pipeline. Despite a study cancellation, hVIVO remains confident in its revenue and EBIT margin targets.
Looking forward, hVIVO aims for a £100 million revenue target by 2028, driven by expanding its human challenge trials, increasing clinical trial services, and exploring M&A activities, supported by a strong cash reserve.
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