hVIVO Shares Rally On Record FY22 Revenues

hVIVO (LON: HVO) said it expects to report record revenues for the year ended December 31, sending its share price 17% higher on Wednesday.

The contract research organisation also said its EBITDA margins are no less than 17%, significantly ahead of its 13-15% guidance. The company said that the EBITDA increase is driven by strong trading in the second half of 2022 and operational efficiencies.

In addition, it states that the recognition of postponement and cancellation fees of over £1 million had a one-time positive impact on EBITDA.

The group revealed that it expects to report record full-year revenues of £50.6 million, a 30% from £39 million in 2021, helped by increased demand for hVIVO's full-service human challenge trials.

hVIVO, a specialist in infectious and respiratory disease products studies, stated that in 2022, the trend of larger contracts with biopharma clients continued, raising the size of its order book to £76 million as of December 31, 2022, up 65% year-on-year.

As a result of the company's growing order book, it has “excellent forward visibility,” with over 95% of forecasted revenue for 2023 already contracted, with further revenue visibility into 2024.

hVIVO also intends to make a shareholder distribution as a result of its positive performance, which it said will be announced alongside its FY22 audited results.

“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,” commented Yamin ‘Mo' Khan, Chief Executive Officer of hVIVO. “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.”