hVIVO PLC (AIM:HVO), the London-listed clinical research group, said it is trading in line with previous market expectations, as it told investors its acquisition strategy is bearing fruit.
The group, which recently bought new businesses of CRS and Cryostore, posted revenues of £24.2 million for the six months to the end of June, down from £35.6 million a year earlier, but in line with forecasts for the year of £47 million.
Profits are also set to be squeezed, with earnings before interest, tax, depreciation and amortisation (EBITDA) falling to an estimated margin of 12% before exceptional items, compared with 24.5% in the first half of 2024.
hVIVIO, which performs human challenge studies that help test vaccines, has been held back by delayed contracts and a subdued funding environment for its biotech clients, particularly in the US.
The company ended the half-year with cash of £23.3 million and no debt.
The company’s orderbook, a measure of contracts already secured, stood at £40 million, and management pointed to a growing sales pipeline, including several large human challenge trials under negotiation, that could be among the largest contracts in its history.
CEO Yamin 'Mo' Khan said: "The utility of our services remains strong, as demonstrated by the recent success of our client's phase II candidate.
"Our diversification strategy is already delivering results, and we expect continued momentum across all revenue streams.
"While macroeconomic and sector-specific headwinds are still affecting contract conversions, we remain confident in the long-term growth trajectory of our services and the overall prospects for hVIVO.
"I'm encouraged by the strength of our sales pipeline, with several major opportunities that could enhance the growth of our services. We believe that we are well-positioned to deliver growth in 2026, and we look forward to keeping shareholders updated on our progress."