hVivo reports record full-year revenue, earnings
By Josh White
Date: Thursday 10 Apr 2025
(Sharecast News) - hVivo reported record revenue and EBITDA in its final results for 2024 on Thursday, supported by strong client demand for its human challenge trial services and the expansion of its operational capabilities, as it outlined plans to reach £100m in annual revenue by 2028.
The AIM-traded human challenge trial specialist said revenue for the year to 31 December rose 11.9% to £62.7m, while EBITDA increased 25.9% to £16.4m, representing a margin of 26.2%.
Adjusted earnings per share climbed 33.3% to 1.69p.
The company ended the year with cash of £44.2m and a weighted contracted orderbook of £67m, having delivered £62.7m of work during the year.
A final dividend of 0.2p per share was declared, in line with the prior year.
Operational progress included a record number of participants inoculated across nine challenge trials using seven different agents, and the completion of the world's first human challenge trial using Flu B.
The launch of its FluCamp recruitment services and increased automation also supported efficiency gains.
Key contracts signed during the year included an £11.5m RSV trial with a top-tier global pharma client, as well as additional work for human rhinovirus and Omicron studies.
Post year-end, hVivo signed a letter of intent with ILiAD Biotechnologies to deliver the world's first pivotal phase three human challenge trial for a whooping cough vaccine, expected to be the company's largest to date.
In March, hVivo completed the acquisition of two clinical research units in Germany from CRS for €10m in cash, which were expected to be earnings enhancing from 2026.
It also acquired Cryostore, a temperature-controlled storage provider, for up to £3.2m, strengthening its laboratory services.
The company guided for revenue of £73m in 2025, with EBITDA margins in the mid-to-high teens as integration costs from recent acquisitions were absorbed.
With 70% of 2025 revenue already contracted, hVivo said it maintained strong visibility into 2026 and was managing an active pipeline of future human challenge trials.
hVivo reiterated its medium-term target of £100m in revenue by 2028 and said it remained well capitalised to support growth.
Chair Cathal Friel, who co-founded the business in 2017, would step down at the 2025 annual general meeting, with a successor to be announced in due course.
"2024 demonstrated further evidence of the strength of our long-term sustainable growth model, with record revenue and EBITDA coupled with strong cash generation," said chief executive officer Dr Yamin 'Mo' Khan.
"An increasing number of global biopharma companies have expressed their interest in our world-leading services, with additional models in various new indications underlining the value that HCTs can offer to the development of innovative new therapies.
"To meet this demand, we have built a world class organisation in personnel and infrastructure, with our new cutting-edge facility in Canary Wharf, which was largely funded by our clients, enabling the execution of larger more complex trials."
Dr Khan said the facility had also opened the door to new revenue streams such as laboratory, participant recruitment, and clinical site services.
"We look forward to delivering further progress in 2025 as we integrate our new revenue streams and build towards our £100m revenue target in 2028."
At 1037 BST, shares in hVivo were up 3.36% at 15.09p.
Reporting by Josh White for Sharecast.com.
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