After hVIVO PLC (AIM:HVO) reported annual revenue of £46.7 million, in line with market expectations, City brokers were assessing whether the company is turning a corner after a difficult year.
Broker Peel Hunt took a positive view, highlighting a strong fourth quarter, improved cost discipline and the benefit of cancellation fees with no associated variable costs. It also pointed to the successful integration of CRS Mannheim, CRS Kiel and Cryostore, which has created four fully operational service lines and helped CRS become cash generative in the final quarter.
Analysts at Peel Hunt said they were encouraged by a “change in tone and the execution from management”, as the broker kept an 'add' rating and a 10p target price.
Elsewhere, Shore Capital pointed to “green shoots” in the update, noting that adjusted EBITDA is now expected to show a small profit rather than a loss and that cash was ahead of expectations. It said sentiment should improve once a recovery in HCT contract wins is evidenced, while reiterating a buy view based on longer-term potential.
Cavendish similarly highlighted the stronger second half, the improved cash position and reiterated guidance for high-single-digit revenue growth in FY26.
Stifel noted that revenues were down 25% year-on-year, reflecting continued sector-wide weakness in the human challenge trial market. However, the broker highlighted a better-than-expected outcome at the profit line, with adjusted EBITDA of around £1 million, which was ahead of both guidance and consensus. This also supported a stronger closing cash balance of £14.3 million.
The Stifel analysts felt the EBITDA beat was driven by tight cost control and cancellation fees, which it described as high-margin but low-quality. Analyst James Orsborne said the shares "need a clearer demonstration of a robust return in demand for the HCT" so stuck with an existing 'hold' rating.
In London, hVIVO shares were on the front foot on Thursday afternoon, up 3%, changing hands at 6.2p.
Strong delivery
The company told investors it expects to report revenue of approximately £46.7 million for the past calendar year, in line with market expectations. Earnings (adjusted EBITDA) margin is anticipated to be a low positive single-digit, which is ahead of previous guidance. The outcome reflects a stronger-than-expected performance in the fourth quarter and cost control measures.
The contract research company ended the year with £14.3 million of cash and no debt.
The sales pipeline strengthened in the second half of the year, the company said, including potential new projects such as the ILiAD Phase III trial. Proposal volumes submitted in 2025 were higher than in 2024.
Guidance was maintained for high single-digit revenue growth in 2026.
"I am pleased to update the market that we expect to report positive (adjusted) EBITDA ahead of guidance for FY25," said chief executive Yamin 'Mo' Khan.
"This was driven by stronger-than-expected operational delivery in Q4 2025, and the contractual protections embedded within our model."
He added: "we are realising synergies across our four specialist service lines. Our purpose-built full-service early phase capabilities clearly differentiate us within the market and together with our strong and diverse pipeline, we reiterate our guidance for high single digit revenue growth in 2026."
Acquisitions and integration of CRS Mannheim & Kiel and Cryostore were completed during 2025. These additions have enabled the business to offer services from preclinical to Phase III clinical development.
The company now operates across four specialist service lines: Consulting, Clinical Trials, Human Challenge Trials and Laboratories. All four are now fully operational.