hVIVO PLC (AIM:HVO), a leader in human challenge trials, has announced unprecedented financial results for 2023, marking a significant milestone in its operational and financial growth. The company reported a 16% increase in revenue year-on-year, achieving £56 million, which exceeded previous forecasts. This financial success is further highlighted by a rise in EBITDA margin from 18.7% to 23.3%, culminating in an absolute EBITDA of £30 million, a 44% increase from the prior year.
Yamin 'Mo' Khan, CEO of hVIVO, credited the company's remarkable performance to an uptick in human challenge trials, which improved patient recruitment efficiency and optimized the use of facilities and staff. Despite operational hurdles, including delays from the MHRA, the financial impact was mitigated by substantial funding directed towards the development of a new facility in Canary Wharf. This facility, featuring a 50-bed quarantine unit and a laboratory, is progressing ahead of schedule and is expected to be fully operational by the end of July, promising to boost operational efficiency and potentially increase revenue to £95 million.
In light of its strong financial health, hVIVO has introduced an annual dividend policy, with plans to distribute £1.4 million in dividends, reflecting its robust cash generation capabilities. The company's forward-looking statements are equally optimistic, with a revenue target of £62 million for the upcoming year, supported by a £180 million weighted order book. Despite a recent study cancellation, hVIVO remains confident in meeting its revenue and EBIT margin objectives.
Looking towards the future, hVIVO has set an ambitious goal to reach £100 million in revenue by 2028. This target is to be achieved through the expansion of human challenge trials, enhancement of clinical trial services, and exploration of mergers and acquisitions. With a solid cash reserve, hVIVO is strategically positioned to seize growth opportunities and reinforce its status as a global leader in the human challenge trial industry. For more information on hVIVO's groundbreaking work, visit https://www.hvivo.com.
