Last checked at 
(Alliance News) - hVivo PLC is targeting a profit by 2020, it said on Thursday, with a strong pipeline of work opportunities lying ahead.
hVivo, which provides clinical development services, posted a pretax loss for the six months to June of GBP4.3 million, narrowed from GBP5.3 million a year before, as revenue climbed 22% to GBP5.9 million.
hVivo said ongoing efficiencies are helping gross margins, while research & development expenses have declined 60% and administrative costs by 22%.
The company derives its revenue mainly from carrying out human challenge studies and laboratory services for clients.
"In the first half of 2019 we have continued to rationalise the company's cost base to further reduce our operating costs and improved our operating efficiency," said Executive Chair Trevor Phillips.
"We have made progress in expanding our service offerings to enhance revenue opportunities, delivered further successful client studies and extend our position as a leader in viral challenge studies. hVIVO is now operationally stronger, better positioned to both succeed in its core business and be profitable in 2020."
Looking ahead, hVivo has a "robust" backlog of contracted work, and it still expects to exceed market expectations for revenue in 2019.
"Following the significant adjustments to the business that we have implemented and despite the high level of contract cancellations, I am confident hVIVO is now well positioned for further revenue growth and to achieve profitability," Phillips added.
Shares were 9.3% lower on Thursday afternoon in London at 17.00 pence each.