- First-half cash profit rises 126 per cent to £5.2mn
- 52 per cent higher revenue of £27.3mn
- Cash profit margin expands from 12.6 to 19.1 per cent
- Net cash has doubled to £31.3mn (4.6p) in past 12 months
- Analysts upgrade 2023 and 2024 EPS estimates by 62 per cent and 46 per cent
Analysts have significantly upgraded their earnings forecasts for hVIVO (HVO:19.5p), a rapidly growing specialist contract research organisation (CRO) which tests infectious and respiratory disease vaccines and antivirals using human-challenge clinical trials. The group provides early clinical development services for a broad and longstanding client base of biopharma companies.
Contract momentum continues to build. hVIVO has won five major contracts with a disclosed value of £25.1mn since the start of 2023, adding to nine contracts awarded last year which had a disclosed contract value of £65mn. Moreover, house broker Cavendish believes that the actual value of this year’s contract win could be as high as £40mn, which includes a £13.1mn contract awarded by a top five global pharmaceutical client to develop a bespoke Influenza B human challenge model. Clearly, there is potential for that contract to evolve into a human challenge trial (HCT) and add to a fast-growing order book that offers revenue visibility well into late 2024.