hVIVO PLC's (AIM:HVO) half-year results came in much as expected, with revenue of £24.2 million and cash of £23.3 million.
The company reaffirmed full-year guidance of £47 million revenue and a small adjusted loss, with Peel Hunt noting that 90% of second-half revenues are already contracted, providing solid visibility.
The broader message was about diversification. CRS and Cryostore, acquired last year, contributed around £5.5 million of sales in the half.
Stifel highlighted that these new service lines, alongside FluCamp and hLab, should, over time, reduce reliance on the core human challenge trial business, which has been affected by a weak biotech funding environment.
Peel also pointed out that the pipeline of new proposals is more diverse than ever and includes potential contracts on a scale not seen before.
The sticking point is 2026 guidance. Management now expects high single-digit growth, well below the 20–25% consensus.
Stifel has taken a more cautious line, cutting forecasts and downgrading the target price to 10p.
Panmure also noted that forecast risk remains high until the big challenge trial contracts start landing, though it remains confident in the long-term market.
Peel has rebased its numbers too, now expecting breakeven in 2026 before a return to profitability in 2027.
Even so, there are positives. The order book of £40 million at the half may be lighter than a year ago, but it still covers most of this year’s revenue.
The new service lines are showing momentum, and the platform remains world-leading. At just 1.2 times sales, Stifel says the valuation already reflects tempered expectations.
The shares were off 2.2% at 8.8p.