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hVIVO announces interim results; revenues grow and losses narrow

By BFN News | 09:29 AM | Thursday 19 September, 2019


hVIVO announced its interim results with revenue up 22% to £5.9m (H1 2018: £4.9 million), and loss for the period coming down from £4.4m to £3.8m. The company highlighted cost cutting and operational efficiencies which support the business turnaround, but cancellations of contracted work had impacted the cash position. Cash and cash equivalents fell from £13.4m down to £4m at 30 June 2019. Admin expenses were down 22% to £3.8m (HY 2018: £4.9m). Post period an R&D tax credit refund of £2.4m was received from HM Revenue & Customs on 4th September 2019. Dr Trevor Phillips, Executive Chairman, commented: 'During the period, we experienced what for hVIVO, was, an unprecedented level of late contract cancellations as some of our clients reprioritised their pipelines, which will continue to impact revenue in the second half of the year. At the beginning of 2019, we were on track to show a substantial revenue increase on 2018, and whilst we still anticipate exceeding market expectations for revenue for the full year, these cancellations have tempered the revenue growth and had a negative impact on our cash position.' 'That said, we have continued to make progress on implementing efficiencies and process initiatives and expect the operating cost base to be significantly lower by year end, enabling us to become profitable and generate cash based on achievable revenue levels in 2020.' Story provided by StockMarketWire.com

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