Hvivo, the pharmaceutical services company formerly known as Open Orphan, said revenue rose last year and raised its medium term targets to £100 million in revenue by 2028.
In a trading update for the year ended December 31st 2023, Hvivo said full year revenue was £56 million, up 15.5 per cent on the prior year. That was attributed to the continued strong delivery of human challenge trials and consulting services, and R & tax credits of £2.6 million.
Earnings before interest, tax, depreciation and amortisation margin also rose, reaching 22 per cent last year compared with 18.7 per cent in 2022. Cash was £37 million at the end of the year, up from £28.4 million at the end of 2022.
Hvivo, which specialises in testing infectious and respiratory disease products, said it had a weighted contracted order book of £80 million at the end of last year. The company said it was guiding £62 million for revenue this year, with the completion of its state-of-the-art facility in Canary Wharf due in the first half. Some 90 per cent of 2024 revenue guidance is already contracted, Hvivo said.
That new facility will also help drive revenues in the future, with the company expecting to reach £100 million by 2028, fuelled mainly by sustained organic growth, alongside strategic bolt on acquisitions.
The company said it intends to begin paying an annual dividend, following a one-off special dividend of £3 million in 2023. Further details will be provided later this year.
“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 order book, reinforces the resilience of our business model and reaffirms the stability of the market,” said Dr Yamin ‘Mo’ Khan, chief executive of Hvivo. ”
“I am excited about 2024 as we look forward to our move to a larger facility and the further diversification of our services including the addition of new challenge agents. The new facility will substantially boost our revenue potential and should lead to improved operational efficiencies and enhanced margins. We are pleased to share a new target of growing the Group’s revenue to £100m by 2028. This growth will be primarily achieved through strong organic growth complemented by small strategic bolt-on acquisitions that adhere to our disciplined criteria, ensuring our long-term success.”
Hvivo was formed when the group’s chairman Cathal Friel reversed his pharma services business, then known as Open Orphan, into Dublin-listed drug clinical trials manager Venn Life Sciences. It rebranded as Hvivo in 2022.
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