hVIVO PLC, a leader in the human challenge trials sector, has announced record-breaking financial results for the year 2023, marking a significant milestone in the company's growth trajectory. The company reported a 16% year-on-year increase in revenue, achieving £56 million, which exceeded previous forecasts. This financial success was further highlighted by a rise in the EBITDA margin from 18.7% to 23.3%, culminating in an absolute EBITDA of £30 million, a 44% increase from the previous year.
Yamin 'Mo' Khan, CEO of hVIVO, credited the company's outstanding performance to an increase in human challenge trials, which improved patient recruitment efficiency and optimized the use of facilities and staff. Despite encountering regulatory delays from the MHRA, the company benefited from significant investment in its new Canary Wharf facility, contributing positively to its financial outcomes.
In a move reflecting its strong financial health, hVIVO has introduced an annual dividend policy, with plans to distribute £1.4 million in dividends. This decision follows a year of robust cash generation. The Canary Wharf 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. This expansion is poised to boost operational efficiency, potentially increasing revenue to £95 million, and reinforcing hVIVO's global standing in the human challenge trial industry.
For the upcoming year, hVIVO is targeting £62 million in revenue, supported by a £180 million weighted order book. Despite a study cancellation, the company remains confident in meeting its revenue and EBIT margin goals. Looking further ahead, hVIVO has set an ambitious revenue target of £100 million by 2028, aiming to expand its human challenge trials, enhance clinical trial services, and explore mergers and acquisitions. With substantial cash reserves, hVIVO is well-equipped to pursue growth opportunities and cement its leadership in the industry.
