TIDMHVO
RNS Number : 7439N
hVIVO PLC
25 January 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE UK VERSION OF THE MARKET ABUSE REGULATION (EU)
NO.596/2014, WHICH FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018 (("UK MAR").
hVIVO plc
("hVIVO" or the "Group")
Trading Update
EBITDA significantly ahead of expectations
Orderbook growth and improved operational delivery lays strong
foundations for future growth
-- Record revenue, up 30% year-on-year to GBP50.6 million
-- EBITDA margins of no less than 17%, significantly ahead of guidance
-- Cash of GBP28.4 million as at 31 December 2022
-- Strong contracted orderbook of GBP76m, up 65% year-on-year
-- Board intention to declare shareholder distribution on publication of full audited accounts
-- Over 95% of 2023 revenue guidance contracted and visibility into 2024
hVIVO plc (AIM & Euronext: HVO) (formerly Open Orphan plc),
a rapidly growing specialist contract research organisation (CRO)
and world leader in testing infectious and respiratory disease
products using human challenge clinical trials, announces a trading
update for the period ended 31 December 2022.
Significant double-digit revenue growth
The Group expects to report record full year revenues of GBP50.6
million (2021: GBP39 million), a 30% increase year-on-year. The
significant growth in revenue provides further validation of the
long-term sustainable growth in the human challenge trial market,
for which hVIVO is the world leader.
EBITDA margins and cash ahead of expectations
The Group expects to report EBITDA margins of not less than 17%
(2021: 7.4%), significantly ahead of previous guidance of 13-15%.
The increase in EBITDA is driven by strong trading in H2 2022 and
operational efficiencies leveraged on the concurrent conduct of
multiple challenge trials. In addition, recognition of postponement
and cancellation fees for an aggregate of over GBP1 million had a
one-time positive impact on EBITDA. The advanced fees from
orderbook growth and efficient operational delivery has resulted in
a cash position of GBP28.4 million as at 31 December 2022 (2021:
GBP15.7 million).
Capital distribution
The Board intends to make a shareholder distribution in respect
of the financial performance achieved in FY22, details of which
will be announced alongside publication of the Group's audited
results for FY22. The distribution reflects the Group's exceptional
cash generation in the year, in addition to its robust balance
sheet.
Further contracted orderbook growth enhances revenue
visibility
In 2022, the trend of larger contracts with biopharma clients
continued, increasing the size of the Group's orderbook to GBP76
million as at 31 December 2022, up 65% year-on-year (2021: GBP46
million), and over sixfold since 2020 (2020: GBP12 million).
There has been increased demand for hVIVO's unique full-service
human challenge offering (with three contracts signed in 2022)
which also involves the manufacture of bespoke challenge agents to
test products against specific infectious disease variants,
including subvariants that are circulating in the population. There
has also been an increase in average challenge trial contract value
driven by client demand for larger volunteer cohorts as the
biopharma market increasingly recognises the value of human
challenge data to accelerate drug development timelines and de-risk
later stage clinical trial programmes.
Current year outlook
The Group has entered 2023 well capitalised, debt free, and with
record visibility into the current financial year. hVIVO is firmly
placed to build on the growth in the human challenge trial market
and further strengthen its position as the world leader in the
field. The growing orderbook from new and existing Big Pharma and
biotech clients provides excellent forward visibility with over 95%
of forecasted revenue for 2023 contracted, and further revenue
visibility into 2024. The Board is confident that the Group will
continue to leverage its competitive position amidst favourable
market dynamics and maintain its strong operational execution,
orderbook revenue conversion and focus on profit generation into
2023 and beyond.
Yamin 'Mo' Khan, Chief Executive Officer of hVIVO, said: "The
record numbers we have been able to announce today is the result of
the hard work by everyone at hVIVO over the last 12 months. The
goal for hVIVO has always been to establish a long-term sustainable
growth model. We now have excellent profitable momentum, with full
year 2022 EBITDA margin and cash significantly ahead of market
expectations, while revenue shows substantial year-on-year growth.
These results signify our successes of 2022 and also lay the
foundations for FY23 and beyond. The record contracted orderbook
not only covers over 95% of the FY23 revenue targets but also gives
us visibility well into 2024.
"With the increasing prevalence and severity of infectious and
respiratory diseases, there is a vital need for new vaccines and
antivirals; as the human challenge partner of choice to the global
biopharma industry, hVIVO is well placed to continue to help
accelerate the development of these important new medicines."
Investor presentation
Yamin 'Mo' Khan, Chief Executive Officer, and Stephen Pinkerton,
Chief Financial Officer, will provide a live presentation via the
Investor Meet Company platform on 25 January 2023 at 18:00 BST.
The presentation is open to all existing and potential
shareholders. Investors can sign up to Investor Meet Company for
free and add to meet hVIVO here .
For further information please contact:
hVIVO plc +44 (0) 20 7756 1300
Yamin 'Mo' Khan, Chief Executive
Officer
Stephen Pinkerton, Chief Financial
Officer
Liberum Capital (Nominated Adviser and
Joint Broker) +44 (0) 20 3100 2000
Ben Cryer, Edward Mansfield, Phil Walker,
Will King
finnCap plc (Joint Broker) +44 (0) 20 7220 0500
Geoff Nash, Charlie Beeson, Nigel Birks,
Harriet Ward (ECM)
Davy (Euronext Growth Adviser and Joint
Broker) +353 (0) 1 679 6363
Anthony Farrell, Niall Gilchrist
Walbrook PR (Financial PR & IR) +44 (0) 20 7933 8780 or hvivo@walbrookpr.com
Stephanie Cuthbert / Phillip +44 (0) 7796 794 663 / +44 (0) 7867 984
Marriage / 082 /
Louis Ashe-Jepson +44 (0) 7747 515 393
Notes to Editors
hVIVO plc (ticker: HVO) (formerly Open Orphan plc) is a rapidly
growing specialist contract research organisation (CRO) and the
world leader in testing infectious and respiratory disease vaccines
and therapeutics using human challenge clinical trials. The Group
provides end-to-end early clinical development services to its
large, established and growing repeat client base, which includes
four of the top 10 largest global biopharma companies.
The Group's fast-growing services business includes a unique
portfolio of 10+ human challenge models to test a broad range of
infectious and respiratory disease products, world class challenge
agent manufacturing, specialist drug development and clinical
consultancy services via its Venn Life Sciences brand, and a lab
offering via its hLAB brand, which includes virology, immunology
biomarker and molecular testing. The Group offers additional
clinical field trial services such as patient recruitment and
clinical trial site services.
hVIVO runs challenge studies in London from its Whitechapel
quarantine clinic, its state-of-the-art QMB clinic with its highly
specialised on-site virology and immunology laboratory, and its
clinic in Plumbers Row. To recruit volunteers / patients for its
studies, the Company leverages its unique clinical trial
recruitment capacity via its FluCamp volunteer screening facilities
in London and Manchester.
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END
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