Hvivo unveils record results and bullish growth targets

Shares in AIM-listed Hvivo dipped on Tuesday despite the infectious and respiratory disease treatment firm reporting a record year across all financial and operational metrics, as well as ambitious revenue targets for the coming years.

Hvivo delivered a 16% increase in annual revenues in 2023 to £56m, and said it expects to generate £62m in 2024, 90% of which has already been contracted.

What's more, the company said it had good visibility into 2025 with a total contracted orderbook stood of £80m by the end of December.

Hvivo also announced a new medium-term target of growing annual sales to £100m by 2028, which it said would be delivered "through strong organic growth complemented by small bolt-on acquisitions that meet the company's strategic and financial criteria".

EBITDA was up 44% over the year at £13m, with EBITDA margins rising to 23.3% from 18.7%.

The company, which had paid a one-off special dividend of £3.1m in 2023, is paying out £1.4m to shareholders by way of a 0.20p annual dividend in respect of the financial year.

"In 2023, we experienced yet another year of growth in the human challenge trial sector, driven by increased recognition among Big Pharma and biotech firms of the compelling evidence supporting the efficacy of hVIVO's human challenge trials in expediting the development of novel vaccines and antivirals," said chief executive Yamin Khan.

"Our exceptional financial performance, marked by record revenues, margins and profitability, coupled with the significant number of volunteers inoculated, underscores not only the expansion of the market but also our ability and capacity to meet the increasing demand."

Despite the record performance, the stock was down 3.1% at 28.5p by 0917 BST.