Contract research group hVIVO PLC said it is on track to post record revenues, while its underlying earnings (EBITDA) have exceeded expectations.
According to the company’s trading update, 2022 turnover will be in the order of £50.6mln, representing a 30% increase year-on-year.
Additionally, it is also expected to report EBITDA margins of not less than 17%, significantly surpassing previous guidance of 13-15%.
The update states that this increase in profitability has been driven by strong trading in the second half of last year and "operational efficiencies" it has found staging back-to-back contracts.
The company, a specialist in infectious and respiratory disease products studies, also attributed its growth to the continued expansion of the human challenge trial market, in which hVIVO is a leading player.
hVIVO also reported a robust order book, with contracted revenue reaching £76mln by the end of 2022, up 65%.
As a result of this exceptional financial performance, hVIVO, which was sitting on £28.4mln on December 31 2022, announced its intention to make a shareholder distribution.
Turning to current trading trends, the group, formerly called Open Orphan, told investors it has already booked 95% of the revenues forecast for 2023; not just that, it has ‘visibility’ into next year too.