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(Alliance News) - hVIVO PLC on Tuesday set a new revenue target of GBP100 million by 2028, after a "strong financial and operational performance" last year.
The London-based firm is a specialist contract research organisation which tests for infectious and respiratory vaccines. Shares in the company were up 11% to 29.10 pence each in London on Tuesday morning.
According to hVIVO, 2023 was a "record year across all financial and operational metrics". For the year ended December 31, it expects to report revenue of GBP56.0 million, up 16% from GBP48.5 million a year prior. Earnings before interest, tax, depreciation and amortisation margins are also expected to rise to 22% from 19%.
hViVO credited its growth to the "continued strong delivery of human challenge trials and consulting services". Additionally, the firm recognised other income related to research and development tax credits of GBP2.6 million, up from GBP2.2 million in 2022.
As at December 31, hVIVO had GBP37.0 million in cash, up from GBP28.4 million a year prior, and boasted of a 5% increase in its weighted contract order book to GBP80 million at the year's end.
90% of revenue guidance is already contracted, the company said, with GBP62 million in revenue expected for 2024 and "good visibility" into 2025.
An annual dividend payment will start in 2024, details of which will be announced alongside the group's full-year results in April.
As a result of its recent progress, hVIVO has set a medium-term target of growing revenue to GBP100 million by 2028, which the company aims to achieve through "strong organic growth complemented by small strategic bolt-on acquisitions that adhere to our disciplined criteria".
hVIVO is also on track to open a new facility in Canary Wharf, London, in the first half of 2024, which will allow it to meet the "growing demand for human challenge trials".
Chief Executive Officer Dr Yamin Khan said: "In 2023, hVIVO demonstrated strong financial and operational performance, delivering record-breaking results across all key parameters. The sustained success of the group, coupled with a growing orderbook, reinforces the resilience of our business model and reaffirms the stability of the market."
By Hugh Cameron, Alliance News reporter
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