TIDMHVO
RNS Number : 0789M
hVIVO PLC
12 September 2023
hVIVO plc
("hVIVO" or the "Group")
Interim results
Stron g first half performance and record forward visibility
Upgrade of Full Year Revenue and EBITDA Guidance
hVIVO plc (AIM & Euronext: HVO) , the world leader in
testing infectious and respiratory disease products using human
challenge clinical trials, announces its unaudited interim results
for the six-month period ended 30 June 2023.
Financial highlights
-- First half revenue growth of 52% to GBP27.3 million* (H1 2022: GBP18.0 million)
-- EBITDA more than doubled to GBP5.2 million (H1 2022: GBP2.3 million)
-- EBITDA margin increased to 19.1% (H1 2022: 12.6%)
-- Net cash of GBP 31.3 million as at 30 June 2023 (H1 2022: GBP15.9 million)
-- Weighted contracted orderbook of GBP78 million as at 30 June
2023 (30 June 2022: c.GBP70 million)
*The Group will now report revenue excluding other income, such
as R&D tax credits. Other income in H1 2023 was GBP1.4 million
(H1 2022: GBP0.9 million).
Operational highlights
-- Human metapneumovirus (hMPV) challenge model under
development, funded by an end-to-end human challenge service
contract with North American biopharmaceutical company
-- Completed the manufacturing of Influenza H1N1 and Omicron human challenge viruses
-- Asia-Pacific (APAC) region identified as a key long term
growth area, underscored by the signing of first challenge trial
contract signed with APAC client in over a decade
-- The Group's fast growing drug development consultancy arm,
Venn Life Sciences, awarded a EUR3.2 million contract with a major
pharmaceutical client
-- Value proposition for human challenge trials reinforced by
positive outcomes from hVIVO challenge trials
o Pfizer's ABRYSVO(TM) became one of the first RSV vaccines to
receive FDA approval in May 2023 having received Breakthrough
designation
o Cidara received FDA Fast Track designation for its influenza
antiviral candidate in June 2023
o SAB Biotherapeutics received FDA Breakthrough and Fast Track
designation for its influenza antiviral candidate in April 2023
Post-period end highlights
-- New state-of-the-art facility, largely funded by a number of
hVIVO clients and which only involves a nominal cash contribution
by the Group, is due to open in H1 2024. This facility will have 50
quarantine bedrooms, with potential to expand to 70 beds, enlarged
cutting-edge laboratories, an outpatient unit, and corporate
office
-- Flu B challenge model under development, funded by GBP13.1 million bespoke manufacturing and characterisation contract with existing top five global pharmaceutical client
Current trading and outlook
As at 30 June 2023, the Group's weighted contracted orderbook
increased to GBP78 million (H1 2022: GBP70 million), an increase of
11%. The orderbook is diversified across multiple clients,
challenge agents and geographies, allowing the management team to
effectively optimise its resources and enhance its adaptability and
flexibility in managing its revenue pipeline. Coupled with its
track record of excellent operational delivery, this provides a
strong foundation for future growth.
The Group recently announced its plan to move to a new
state-of-the-art facility which is due to open in H1 2024. The move
will enable the Group to increase its revenue potential by
increasing its number of quarantine beds, improving its ability to
conduct larger studies faster, enable multiple concurrent trials
improving utilisation levels and support the development of new CRO
service revenue streams. Additionally, consolidating hVIVO's
clinical and laboratory operations into a single location will lead
to improved operational efficiencies, further enhancing long term
margins. Its current quarantine facilities will remain open until
the new facility is fully operational, however by availing of break
clauses in its current leases, the Group has ensured an orderly
transition to its new and improved facility and as such, will not
incur lease costs on any of its legacy quarantine facilities beyond
Q3 2024.
The Group has minimised the impact from delays in UK clinical
trial approvals by the Medicines and Healthcare products Regulatory
Authority (MHRA) by working closely with its clients and the MHRA
in recent months and has received all outstanding approvals. hVIVO
continues to monitor the situation closely, working with its
clients to ensure the timely delivery of its studies.
hVIVO increases its revenue guidance to GBP55 million (excluding
other income) for 2023 and increases its EBITDA margin guidance for
2023 to c.19%.
Dividend
The Company intends to pay a nominal annual dividend going
forward, details of which will be announced alongside publication
of the Group's audited results for FY23.
Yamin 'Mo' Khan, Chief Executive Officer of hVIVO, said: "The
first half of 2023 has delivered another period of excellent growth
and progress towards our goal of establishing a long-term
sustainable growth model. The increasing number of trials, as well
as the growing volunteer cohorts and expanding use cases,
highlights that the human challenge market is experiencing a strong
growth trend that we strongly believe will continue over the long
term. The outlook for the business is extremely positive, as our
new state-of-the-art facility sets us up to accelerate our growth
over the long term. We are delighted to increase our revenue
guidance and EBITDA margin guidance for 2023. Finally, I would like
to thank our staff for their continued dedication and boundless
enthusiasm as we progress towards our vision to transform global
healthcare."
Investor presentation
Yamin 'Mo' Khan, Chief Executive Officer, and Stephen Pinkerton,
Chief Financial Officer, will provide a live presentation via the
Investor Meet Company platform on 12 September 2023 at 18:00
BST.
The presentation is open to all existing and potential
shareholders. Investors can sign up to Investor Meet Company for
free and add to meet hVIVO here.
For further information please contact:
hVIVO plc +44 (0) 20 7756 1300
Yamin 'Mo' Khan, Chief Executive
Officer
Stephen Pinkerton, Chief Financial
Officer
Liberum Capital (Nominated Adviser and
Joint Broker) +44 (0) 20 3100 2000
Ben Cryer, Edward Mansfield, Phil Walker,
Will King
Cavendish Capital Markets Ltd (Joint
Broker) +44 (0) 20 7220 0500
Geoff Nash, Charlie Beeson (Corporate
Finance)
Nigel Birks, Harriet Ward (ECM)
Davy (Euronext Growth Adviser and Joint
Broker) +353 (0) 1 679 6363
Anthony Farrell, Niall Gilchrist
Walbrook PR (Financial PR & IR) +44 (0) 20 7933 8780 or hvivo@walbrookpr.com
Stephanie Cuthbert / Phillip +44 (0) 7796 794 663 / +44 (0) 7867 984
Marriage / 082 /
Louis Ashe-Jepson +44 (0) 7747 515 393
Notes to Editors
hVIVO plc (ticker: HVO) (formerly Open Orphan plc) is a rapidly
growing specialist contract research organisation (CRO) and the
world leader in testing infectious and respiratory disease vaccines
and therapeutics using human challenge clinical trials. The Group
provides end-to-end early clinical development services to its
large, established and growing repeat client base, which includes
four of the top 10 largest global biopharma companies.
The Group's fast-growing services business includes a unique
portfolio of 11 human challenge models, with a number of new models
under development, to test a broad range of infectious and
respiratory disease products. The Group has world class challenge
agent manufacturing capabilities, specialist drug development and
clinical consultancy services via its Venn Life Sciences brand, and
a lab offering via its hLAB brand, which includes virology,
immunology biomarker and molecular testing. The Group offers
additional clinical field trial services such as patient
recruitment and clinical trial site services.
hVIVO runs challenge studies in London from its Whitechapel
quarantine clinic, its state-of-the-art QMB clinic with its highly
specialised on-site virology and immunology laboratory, and its
clinic in Plumbers Row. To recruit volunteers / patients for its
studies, the Group leverages its unique clinical trial recruitment
capability via its FluCampvolunteer screening facilities in London
and Manchester.
CEO Statement
For the six months ended 30 June 2023
Establishing a long-term sustainable growth model
The first half of 2023 has seen further excellent progress
towards our goal of establishing a long-term sustainable growth
model. I strongly believe that human challenge trials (HCTs) remain
an underutilised means of developing vaccines and antivirals, and
over the past 18 months we have seen a significant increase in both
the number and size of trials as a greater number of big pharma and
biotech companies realise the time and cost savings of HCTs over
traditional field trials. The rise in demand for HCTs was reflected
in the substantial growth in first half revenues, driven by the
delivery of a higher number of challenge trials and the continued
growth in our orderbook, which is diversified across clients,
challenge agents and geographies. The robust orderbook underpins
the sustainable growth trajectory of the Group providing revenue
visibility into late 2024. This has enabled management to
effectively plan and strategise into the long term.
We continued to deliver improved profit margins in the period
which translated to robust cash generation. The efficiency
initiatives implemented to maximise quarantine bed occupancy and
improve volunteer conversion rates are now beginning to deliver
sustainable improvements in performance. This is the result of
conducting multiple challenge model trials concurrently, with
volunteers delivered by our revamped FluCamp volunteer recruitment
platform.
I believe there are still greater opportunities to drive
efficiencies across the Group, and our recently announced move to a
larger state-of-the-art facility is a clear indicator that we are
committed to further improvement in this regard over the long term.
I am very proud of what the team has achieved in H1 2023 and I am
inspired by their continued drive and commitment to achieve our
shared mission of delivering today's healthcare by empowering
tomorrow's innovation.
Optimised business model delivers record financial
performance
hVIVO delivered record revenue of GBP27.3 million in H1 2023 (H1
2022: GBP18.0 million), a 52% increase on H1 2022. The Group
recorded exceptional EBITDA growth of 129% to GBP5.2 million (H1
2022: GBP2.3 million), with EBITDA margin increasing to 19.1% (H1
2022: 12.6%). This is the result of our continued focus on
optimising hVIVO's business model, driving operational improvements
and efficiencies combined with disciplined capital allocation to
deliver improved profitability.
The focus on operational excellence has enhanced cash generation
with net cash of GBP 31.3 million as at 30 June 2023 (H1 2022:
GBP15.9 million). The Group is debt free, has a robust net working
capital, and has structured its contracts to be cash flow positive
for hVIVO. All of our challenge trial contracts include a
non-refundable quarantine booking fee, with milestone payments that
are set to forward fund the next phase of the challenge trial.
Seeing the benefits of human challenge trials ("HCTs")
The significant uptake in the use of HCTs over the past 18
months has been fuelled by increasing real-world examples of their
benefits over traditional field trials. These include expedited
development and regulatory review timelines, and early proof of
concept data with the potential to increase the valuation of
biotech companies and their assets. A few recent examples that have
underlined the value proposition of HCTs include:
-- Pfizer's ABRYSVO(TM), one of the first RSV vaccines to
receive FDA approval in May 2023 having received Breakthrough
designation
-- Cidara received FDA Fast Track designation for its influenza antiviral candidate in June 2023
-- SAB Biotherapeutics received FDA Breakthrough and Fast Track
designation for its influenza antiviral candidate in April 2023
The growth in demand for HCTs is reflected in the increasing
scope of the contracts we have signed. Our clients want to collect
more information than just whether the drug is effective or not;
this additional information may include determining the optimal
dose, exploring various primary and secondary endpoints, defining
timepoints for late-stage trials and/or comparing products
developed through different technologies. A case in point is the
head-to-head comparison of a vaccine manufactured using different
technologies in a single trial, the goal being the identification
of the best candidate to progress to late-stage clinical
development. Consequently, a larger number of volunteers are
required to obtain statistically significant data.
New state-of-the-art facility
The goal to establish a long-term sustainable growth model has
been reinforced by plans to move to a bigger state-of-the-art
facility. Our goal has always been to increase our capacity in the
future, but we have shown great agility to take full advantage of
an opportune moment to expedite our expansion. The availability of
the right facility at the right price, the high orderbook, the
demand for standalone laboratory work, the timing of the break
clauses in current quarantine facility leases, and the economic
support from our customers all make it an ideal time for this move.
This move has been largely funded by a number of hVIVO clients
(with a nominal cash contribution by the Group), underscoring the
crucial role that HCTs are increasingly playing in the development
of new vaccines and antivirals. The move is a central piece of our
long-term plan and will increase our number of quarantine beds to
50 with the potential to expand to 70 beds. It will also allow us
to significantly enhance our lab offering and capacity with
cutting-edge virology and immunology laboratories.
Ultimately, consolidating our operations into a single location
will result in further operational efficiencies, further enhancing
long term margins. The move is expected to be a seamless
transition, completed over two phases to ensure uninterrupted
service delivery for our clients as well as ensuring that the Group
will not incur lease costs on any legacy quarantine facilities
beyond Q3 2024. The Group's volunteer screening facilities and
outpatient unit in Manchester and in East London will remain in
place.
World leading diversified offering
A key cornerstone of our growth strategy has been to leverage
the sustained growth in demand for challenge studies to diversify
our service offering beyond challenge studies by establishing new
revenue streams and increasing utilisation across our existing
resources to further increase profit margins.
A main driver of this has been to develop new challenge models,
paid for by our clients, in indications where they have expressed
concrete interest in completing a challenge study. We have expanded
our library of challenge models, having completed the manufacturing
of our Omicron and H1N1 influenza challenge agents in H1 2023. We
have also signed a new end-to-end human challenge service contract
to develop a human metapneumovirus (hMPV) as well as a bespoke
influenza B challenge model contract. Challenge agent manufacture
has developed into a strong revenue source with healthy
year-on-year growth. This is a service unique to hVIVO who are the
only global provider with the capabilities to manufacture and
characterise a new virus and subsequently conduct a full challenge
trial, positioning us as the clear leader in this growing
market.
Venn Life Sciences, our drug development consulting subsidiary,
reported strong revenue growth of 20% in the first half of 2023. We
believe there are further growth opportunities at Venn and have
identified ATMP (advanced therapy medicinal products) and drug
device consulting as key areas for investment. We are also seeing
an increase in consultancy services at hVIVO in clinical
development, regulatory affairs, and quality assurance.
In addition, we signed our first contract with a large global
CRO in 2023 for volunteer repurposing. This involves redirecting
FluCamp volunteers that did not meet the eligibility criteria for
challenge studies to our global CRO partner for inclusion in one of
their studies. Finally, we are particularly excited about the
opportunity for our lab services. The new lab facilities at Canary
Wharf will significantly increase our sample throughput and enhance
hLAB, the Group's highly specialised virology and immunology
laboratory service offering, to deliver industry leading lab
services to HCT and other biopharma clients.
Increasing global demand for human challenge trials
The Group's weighted orderbook of signed contracts continued its
long-term growth trend by increasing to GBP78 million as at 30 June
2023 (H1 2022: GBP70 million). hVIVO continued to add to its
contracted orderbook in the first half of 2023, signing a bespoke
human challenge model contract as well as an end-to-end human
challenge service contract (influenza B and hMPV) in addition to
signing its first human challenge trial contract with a client in
the APAC region in over a decade. This represents an important
milestone, underlining the global demand for HCTs. North America
and Europe continue to be the main sources of revenue for the
Group, but we have identified APAC as a key growth region and
anticipate further demand from APAC-based companies going
forward.
hVIVO's potential pipeline of HCTs is continuing to increase,
with the number of phase I and II clinical trials in disease
indications for which hVIVO has developed a challenge model growing
annually. This is also reflected in the long-term upward trend in
the number of vaccine studies conducted each year. As the funding
environment for biotechnology companies remains challenging, we are
seeing an increasing interest in challenge trials from prospective
biotech clients as they look to minimise risk, reduce costs and
development timelines, and obtain crucial human efficacy data.
Positive outlook
The first half of 2023 has delivered another period of excellent
growth and demonstrates further progress towards our goal of
establishing a long-term sustainable growth model. The increasing
number of HCTs, as well as the growing volunteer cohorts and
expanding use cases, highlights that the market is experiencing a
strong growth trend that we firmly believe will continue over the
long term. The Group is well capitalised and in a robust financial
position to develop new revenue streams and increase profitability
through both organic and inorganic opportunities. This, combined
with the new models under development and the Group's track record
of excellent operational delivery gives the Board confidence that
hVIVO will maintain its strong upward growth trend.
The Group has minimised the impact from delays in UK clinical
trial approvals by the Medicines and Healthcare products Regulatory
Authority (MHRA) by working closely with its clients and the MHRA
in recent months and has received all outstanding approvals. hVIVO
continues to monitor the situation closely, working with its
clients to ensure the timely delivery of our studies.
The outlook for the business remains extremely positive, with
revenue for 2023 fully contracted and our orderbook providing
excellent visibility over revenue into late 2024, as well as a new
state-of-the-art facility equipped to accelerate our growth over
the long term. The Board has increased its revenue guidance to
GBP55 million for 2023 as well as increasing its EBITDA margin
guidance to c.19% for 2023. Furthermore, it is the Board's
intention to pay a nominal annual dividend following the
publication of the full year results for 2023.
Finally, I would like to thank our staff for their continued
dedication and boundless enthusiasm as we progress towards our
vision to transform global healthcare.
Yamin 'Mo' Khan
CEO
11 September 2023
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
----------------------------------- ----- --------------- --------------- ------------
Operations
Revenue, from contracts
with customers 27,297 18,010 48,477
Other operating income 1,352 861 2,220
Direct project and administrative
costs (23,439) (16,599) (41,625)
----------------------------------- ----- --------------- --------------- ------------
EBITDA before exceptional
items 5,210 2,272 9,072
Depreciation & amortisation (1,340) (1,436) (2,930)
Exceptional items (219) (186) (119)
----------------------------------- ----- --------------- --------------- ------------
Operating profit 3,651 650 6,023
Net finance income/(expense) 530 (172) 617
Impairment of investment
in associate - - (6,957)
Share of loss of associate
using equity method - (25) (48)
----------------------------------- ----- --------------- --------------- ------------
Profit/(loss) before
income tax 4,181 453 (365)
Income tax charge (253) (176) (411)
----------------------------------- ----- --------------- --------------- ------------
Profit/(loss) for the
year 3,928 277 (776)
----------------------------------- ----- --------------- --------------- ------------
Profit/(loss) for the
year is attributable
to:
Shareholders 3,928 277 (776)
----------------------------------- ----- --------------- --------------- ------------
Other comprehensive
income
Currency translation
di erences (106) (173) 27
----------------------------------- ----- --------------- --------------- ------------
Total comprehensive
income/(loss) for the
year 3,822 104 (749)
----------------------------------- ----- --------------- --------------- ------------
Earnings per share attributable to shareholders
during the year:
Basic earnings per share 3 0.58p 0.04p (0.12p)
Diluted earnings per
share 3 0.58p 0.04p (0.12p)
----------------------------------- ----- --------------- --------------- ------------
Adjusted earnings per share attributable
to shareholders during the year:
Basic adjusted earnings
per share 3 0.58p 0.04p 0.90p
Diluted adjusted earnings
per share 3 0.58p 0.04p 0.90p
----------------------------------- ----- --------------- --------------- ------------
Consolidated Statement of Financial Position
As at 30 June 2023
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
-------------------------------- ----- ------------- ------------- ------------
Assets
Non--current assets
Intangible assets 5,967 6,200 6,023
Property, plant and equipment 1,482 1,496 1,513
Investment in associates - 6,980 -
Right of use asset 2,393 2,178 1,610
-------------------------------- ----- ------------- ------------- ------------
Total non--current assets 9,842 16,854 9,146
-------------------------------- ----- ------------- ------------- ------------
Current assets
Inventories 443 687 499
Trade and other receivables 4 9,947 13,371 13,291
Cash and cash equivalents 31,346 15,932 28,444
-------------------------------- ----- ------------- ------------- ------------
Total current assets 41,736 29,990 42,234
-------------------------------- ----- ------------- ------------- ------------
Total assets 51,578 46,844 51,380
-------------------------------- ----- ------------- ------------- ------------
Equity attributable to
owners
Share capital 679 671 671
Share premium account 428 1 4
Merger reserves (6,856) (6,856) (6,856)
Foreign currency reserves 1,252 1,158 1,358
Share based payment reserve 590 345 578
Retained earnings 25,552 25,483 24,463
-------------------------------- ----- ------------- ------------- ------------
Total equity 21,645 20,802 20,218
-------------------------------- ----- ------------- ------------- ------------
Liabilities
Non--current liabilities
Lease liabilities 700 752 737
Leasehold provision 660 40 660
-------------------------------- ----- ------------- ------------- ------------
Total non--current liabilities 1,360 792 1,397
-------------------------------- ----- ------------- ------------- ------------
Current liabilities
Trade and other payables 5 27,075 23,729 28,869
Lease liabilities 1,428 1,425 826
Leasehold provision 70 10 70
Borrowings - 86 -
-------------------------------- ----- ------------- ------------- ------------
Total current liabilities 28,573 25,250 29,765
-------------------------------- ----- ------------- ------------- ------------
Total liabilities 29,933 26,042 31,162
-------------------------------- ----- ------------- ------------- ------------
Total equity and liabilities 51,578 46,844 51,380
-------------------------------- ----- ------------- ------------- ------------
Consolidated Statement of Changes in Shareholders' Equity
Share Share premium Merger Foreign Share option Retained Total
capital reserve currency reserve earnings
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
At 1 January
2022 671 1 (6,856) 1,331 327 25,206 20,680
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Changes in
equity for
the 6 months
ended 30 June
2022
Profit for
the period - - - - - 277 277
Currency differences - - - (173) - - (173)
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Total comprehensive
income for
the period - - - (173) - 277 104
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Transactions
with the owners
Share based
payment res. - - - - 18 - 18
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Total contributions
by and distributions
to owners - - - - 18 - 18
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
At 30 June
2022 671 1 (6,856) 1,158 345 25,483 20,802
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Changes in
equity for
the 6 months
ended 30 June
2022
(Loss) for
the period - - - - - (1,053) (1,053)
Currency differences - - - 200 - - 200
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Total comprehensive
(loss) for
the period - - - 200 - (1,053) (853)
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Transactions
with the owners
Share based
payment res. - - - - 233 33 266
Shares issued - 3 - - - - 3
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Total contributions
by and distributions
to owners - 3 - - 233 33 269
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
At 31 December
2022 671 4 (6,856) 1,358 578 24,463 20,218
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Changes in
equity for
the 6 months
ended 30 Jun
2023
Profit for
the period - - - - - 3,928 3,928
Currency differences - - - (106) - - (106)
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Total comprehensive
income for
the period - - - (106) - 3,928 3,822
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Transactions
with the owners
Share based
payment res. - - - - 12 215 227
Shares issued 8 424 - - - - 432
Dividends paid - - - - - (3,054) (3,054)
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Total contributions
by and distributions
to owners 8 424 - - 12 (2,839) (2,395)
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
At 30 June
2023 679 428 (6,856) 1,252 590 25,552 21,645
----------------------- --------- -------------- --------- ---------- ------------- ---------- --------
Consolidated Statement of Cash Flows
For the 6 months ended 30 June 2023
6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------- --------------- --------------- ------------
Cash used in operations
Profit/(loss) before income
tax 4,181 453 (365)
Adjustments for:
- Depreciation & amortisation 1,340 1,436 2,930
- Exceptional items 219 186 119
- Net gain on disposals - (19) -
of fixed assets & leases
- Impairment of associate - - 6,957
- Net gain on disposals
of PPE - - (12)
- Net finance (income)/expense (530) 172 (617)
- Share based payment charge 227 18 284
- R & D Credit Incl. in
other income (1,343) (724) (1,851)
- Share of Imutex loss - 25 48
Changes in working capital:
- Decrease/(increase) in trade
and other receivables 3,207 (4,389) (4,309)
- Decreased/(increase) in
inventories 56 (28) 172
- (Decrease)/increase in
trade and other payables (768) 5,333 11,152
----------------------------------- --------------- --------------- ------------
Net cash generated in operations 6,589 2,463 14,508
Income tax (R & D Credit)
received 75 - 1,473
----------------------------------- --------------- --------------- ------------
Net cash generated in operating
activities 6,664 2,463 15,981
----------------------------------- --------------- --------------- ------------
Cash flow from investing
activities
Purchase of property, plant
and equipment (386) (858) (1,275)
Purchase of intangible assets - (79) (87)
----------------------------------- --------------- --------------- ------------
Net cash used in investing
activities (386) (937) (1,362)
----------------------------------- --------------- --------------- ------------
Cash flow from financing
activities
Lease payments (1,152) (1,163) (2,178)
Dividends paid (3,054) - -
Proceeds from issue of shares 432 - 3
Exceptional items (paid) - (85)
Interest & FX gains received
/(paid) 382 (6) 635
Repayment of convertible
debenture security - (208) (294)
----------------------------------- --------------- --------------- ------------
Net cash used in financing
activities (3,392) (1,462) (1,834)
----------------------------------- --------------- --------------- ------------
Net increase in cash and
cash equivalents 2,886 64 12,785
Cash and cash equivalents
at beginning of period 28,444 15,694 15,694
FX translation 16 174 (35)
----------------------------------- --------------- --------------- ------------
Cash and cash equivalents
at end of period 31,346 15,932 28,444
----------------------------------- --------------- --------------- ------------
NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
1. General information
hVIVO plc is a company incorporated in England and Wales. The
Company is a public limited company, limited by shares, listed on
the AIM market of the London Stock Exchange and on Euronext Growth
in Dublin. The address of the registered office is Queen Mary Bio
Enterprises, Innovation Centre, 42 New Road, London, E1 2AX,
UK.
The principal activity of the Group is that of a growing
specialist CRO pharmaceutical services company which is the world
leader in the testing of vaccines and antivirals using human
challenge clinical trials. The Group has a presence in the UK,
Ireland, France and Netherlands.
The financial statements are presented in thousands of GBP
("GBP'000s"), except where otherwise indicated. The Group comprises
hVIVO plc and its subsidiary companies.
The registered number of the Company is 07514939.
2. Basis of preparation and accounting policies
The consolidated financial statements of hVIVO plc have been
prepared in accordance with UK adopted international accounting
standards (IFRSs), IFRIC interpretations and the Companies Act 2006
applicable to companies reporting under IFRS.
The consolidated financial statements have been prepared under
the historical cost convention.
The accounting policies applied by the Group in this financial
information are the same as those applied by the Group in its
financial statements for the year ended 31 December 2022 and which
will form the basis of the 2023 financial statements.
The financial information presented herein does not constitute
full statutory accounts under Section 434 of the Companies Act 2006
and was not subject to a formal review by the auditors. The
financial information in respect of the year ended 31 December 2022
has been extracted from the statutory accounts which have been
delivered to the Registrar of Companies. The Group's Independent
Auditor's report on those accounts was unqualified, did not include
references to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and did not contain
a statement under section 498(2) or 498(3) of the Companies Act
2006. The financial information for the half years ended 30 June
2023 and 30 June 2022 is unaudited and the twelve months to 31
December 2022 is audited.
The Interim Financial Statements were approved by the Board of
Directors on 11 September 2023.
3. Earnings per share
6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
Basic earnings/(loss) per
share (p) 0.58p 0.04p (0.12)p
Basic adjusted earnings/(loss)
per share (p) 0.58p 0.04p 0.92p
Diluted earnings/(loss)
per share (p) 0.58p 0.04p (0.12)p
Diluted adjusted earnings/(loss)
per share (p) 0.58p 0.04p 0.90p
----------------------------------- --------------- --------------- ------------
Basic earnings per share has been calculated by dividing the
profit attributable to shareholders by the weighted average number
of shares in issue during the period.
Diluted earnings per share has been calculated after adjusting
the weighted average number of shares used in the basic calculation
to assume the conversion of all potentially dilutive shares. A
potentially dilutive share is a warrant or option where its
exercise price is below the average market price of hVIVO shares
during the period and any performance conditions attaching to the
scheme have been met at the balance sheet date.
The adjusted profit is used in the calculation of adjusted
earnings per share as reconciled below:
6 months 6 months ended Year ended
ended
30 June 30 June 2022 31 December
2023 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- --------------- ------------
Profit/(loss) for the period 3,928 277 (776)
Impairment of investment in associate - - 6,957
---------------------------------------- ---------- --------------- ------------
Adjusted profit for the
period 3,928 277 6,181
---------------------------------------- ---------- --------------- ------------
The numbers of shares used in calculating basic and diluted
earnings per share are reconciled below. Where there is a loss in
the period, the share options are deemed to be antidilutive and
therefore not included in the calculation.
6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
Weighted average number of shares in issue
----------------------------------------------- --------------- ------------
Basic 675,075,857 670,929,314 670,943,918
Dilution for share options
and warrants 4,409,547 6,967,997 -
------------------------------ --------------- --------------- ------------
Diluted 679,485,403 677,897,311 670,943,918
------------------------------ --------------- --------------- ------------
4. Trade and other receivables
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------ ------------- ------------- ------------
Trade receivables 4,354 8,658 8,276
Prepayments 948 916 992
Accrued income 1,495 1,119 1,505
Other receivables (incl. R&D
tax credits) 3,150 2,678 2,518
------------------------------- ------------- ------------- ------------
Total non--current
assets 9,947 13,371 13,291
------------------------------- ------------- ------------- ------------
5. Trade and other payables
30 June 2023 30 June 2022 31 December
2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------- ------------
Trade payables 1,318 2,781 2,701
Social security and other
taxes 585 797 738
Other payables 215 458 718
Accrued expenses 5,554 2,486 3,946
Deferred income 19,403 17,207 20,766
---------------------------- ------------- ------------- ------------
Total non--current assets 27,075 23,729 28,869
---------------------------- ------------- ------------- ------------
6. Share based payments
There was a share-based payment charge in the period of
GBP227,000 (H1 2022: GBP18,000).
7. Dividend
A special, one off dividend of 0.45 pence per share was paid to
shareholders on 9 June 2023. The total amount paid by the Company
was GBP3,054,000.
8. Non-adjusting events after the reporting period
In August 2023, the Group agreed to enter into a lease for a
state-of-the-art facility in Canary Wharf, London. The facility
will serve as a comprehensive site, housing quarantine bedrooms,
advanced laboratories, an outpatient unit, and corporate
offices.
On 6 September 2023, the Company issued 1,607,142 shares at
price of 5.6 pence per share as a result of warrants being
exercised by a former nomad and corporate finance adviser.
9. Press
A copy of this announcement is available from the Company's
website, being www.hvivo.com . If you would like to receive a hard
copy of the interim report, please contact the hVIVO plc offices at
ir@hvivo.com to request a copy.
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END
IR FLFITADILLIV
(END) Dow Jones Newswires
September 12, 2023 02:00 ET (06:00 GMT)
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