hVIVO PLC (AIM:HVO) has reaffirmed its full-year revenue guidance of £62 million and is expecting EBITDA margins at the upper end of market expectations.
In a trading update, the specialist contract research group reported record revenue of £35.6 million for the first half, up almost 31% on the year earlier, and said its EBITDA margin advanced 4.9 percentage points at 24%.
As of June 30, hVIVO's cash position was robust at £37.1 million, compared to £31.3 million the previous year.
Investors were told the weighted contracted order book stood at £71 million with demand for its services high across various human challenge models.
Despite some expected reductions in the order book due to the early completion of projects, hVIVO said it maintains full visibility for the remainder of the year and a strong pipeline extending into 2025.
The company's move to the new Canary Wharf facility has increased its quarantine capacity and advanced its containment capabilities, allowing for expanded human challenge trial offerings.
hVIVO is also focusing on diversifying its service offerings to improve growth and margins by leveraging staff expertise and existing facilities.
Recent successes include securing the largest field study contract to date, with the company selected as the sole UK clinical site for a multicentre study enrolling up to 1,000 volunteers.
"We have full visibility over our expected 2024 revenues and continue to deliver on our sustainable growth strategy," said CEO Yamin 'Mo' Khan.
"The order book remains strong in spite of record revenue delivery in the first half of 2024.
"The recent Omicron characterisation study contract and the award of our largest field study to date are two key sales highlights for the first half.
"In addition, the current sales pipeline includes several advanced-stage opportunities that we expect to convert in the coming months."