hVIVO order book more than doubles as 2026 trading shifts into H2

hVIVO's first-half update presents investors with two very different pictures. Trading during the period was subdued, with revenue falling and adjusted EBITDA moving into negative territory. Commercial activity, however, appears considerably stronger, with the order book more than doubling since the start of 2026.

The clinical development specialist continues to expect high single-digit revenue growth for the full year. Reaching that outcome will require a substantial acceleration in the second half, making the timing and execution of contracted programmes particularly important.

hVIVO's H1 2026 figures at a glance

Measure	H1 2026	Comparison
Revenue	£16.3 million	£24.2 million in H1 2025
Adjusted EBITDA	Negative mid-single digit	£3.0 million in H1 2025
Order book	£65 million	£30 million at the start of 2026
Cash	£13 million	£14.3 million at 31 December 2025
Proposal volumes	Up approximately 45%	Year-on-year
2026 revenue outlook	High single-digit growth	Broadly in line with expectations

The headline weakness is the drop in first-half revenue. At £16.3 million, revenue was £7.9 million below the £24.2 million reported for the same period last year.

Management attributes this to the previously guided weighting of activity towards the second half and timing shifts in revenue recognition on certain contracted client programmes. In other words, the company says the work remains contracted, but some of the associated revenue is being recorded later than initially expected.

Why the £65 million order book matters

The most encouraging figure is the order book, which increased from £30 million at the start of 2026 to £65 million by the end of June. That is an increase of £35 million and means the total has more than doubled in six months.

An order book represents contracted work that has not yet been fully recognised as revenue. It therefore gives investors some visibility over future activity, although it is not the same as revenue already earned or cash received.

hVIVO says the enlarged order book provides improved visibility for the remainder of 2026, through 2027 and into 2028. This is supported by recent contract wins and proposal volumes running approximately 45% above the previous year.

That proposal growth is not guaranteed to turn into contracts. Nevertheless, it indicates that potential clients are engaging more actively with the business, creating opportunities for further order book expansion during H2.

The company reports encouraging demand across infectious disease, respiratory and cardiometabolic programmes. It is also seeing growing interest in its wider early-phase contract research organisation, or CRO, and laboratory capabilities.

A broader service model could improve resilience

hVIVO now operates under one brand across four integrated service lines: Consulting, Clinical Trials, Human Challenge Trials and Laboratory Services.

Human challenge trials deliberately expose carefully selected participants to a pathogen under controlled conditions. The aim is to generate efficacy data more quickly than may be possible through conventional field-based studies.

The broader platform means hVIVO is not relying solely on these specialist studies. Management believes the integrated model can create cross-selling opportunities, diversify the client base and produce a more balanced revenue profile.

That strategic logic is reasonable. A client using hVIVO for consulting or laboratory work may also require clinical trial support, allowing the group to capture more value across a drug development programme.

The key question is whether this commercial activity converts into revenue and profit at the expected pace. The larger order book is promising, but delivery remains the test.

Profitability has weakened in the first half

Adjusted EBITDA for H1 2026 is expected to be negative mid-single digit, compared with positive adjusted EBITDA of £3.0 million in H1 2025. Adjusted EBITDA is a measure of operating profitability before interest, tax, depreciation, amortisation and specified adjustments.

The exact H1 2026 adjusted EBITDA amount is not disclosed. The company says the decline was driven by the lower first-half revenue base and expects the considerably higher revenue planned for H2 to produce positive adjusted EBITDA during that period.

This illustrates the operational risk created by a heavily back-end-weighted year. A business still carries staff, facilities and other operating costs when programme starts move, so lower revenue can have a pronounced effect on short-term profitability.

There were no one-off exceptional items in 2026, compared with £1.4 million in 2025. That should make the underlying first-half performance relatively straightforward to assess when the full interim results are published.

Cash provides some financial flexibility

Cash stood at £13 million on 30 June 2026, down from £14.3 million at the end of December 2025.

Despite the lower balance, hVIVO says it benefited from positive working capital inflows following recent contract wins. Working capital refers to the cash tied up in day-to-day trading, including client payments, receivables and supplier obligations.

Management believes the group retains enough financial flexibility to continue investing in growth initiatives. The update does not disclose debt, net cash or detailed cash-flow figures, so investors will need the interim accounts for a fuller view of balance-sheet strength and cash conversion.

Full-year guidance is intact, but the delivery window is narrower

The board continues to expect 2026 revenue to grow at a high single-digit rate, broadly in line with existing guidance. Revenue is expected to be heavily weighted towards the second half, when management also anticipates returning to positive adjusted EBITDA.

There is an important qualification. Timing shifts affecting some programmes are now expected to cause a modest deferral of revenue previously scheduled for H2 2026 into 2027.

The company has not disclosed the value of that deferred revenue. Maintaining the full-year growth outlook despite the shift suggests other contracted activity is expected to compensate, but it also leaves less room for additional delays.

Investors will therefore want to monitor programme commencements, the rate at which the £65 million order book converts into reported revenue and whether positive H2 adjusted EBITDA is delivered.

What investors should take from the update

The positive case rests on much stronger commercial momentum. hVIVO has added £35 million to its order book since the start of the year, proposal volumes are approximately 45% higher and contracted revenue visibility now extends into 2028.

The less comfortable part is that current financial performance has weakened. First-half revenue declined sharply, adjusted EBITDA turned negative and some revenue has moved from 2026 into 2027.

This makes H2 execution the central issue. If scheduled programmes start and progress as expected, the enlarged order book should support a marked improvement in revenue and profitability. Further timing changes, however, could put pressure on the full-year outcome.

For now, hVIVO's commercial engine appears to be gaining speed. The next task is turning that demand into recognised revenue, positive adjusted EBITDA and cash generation.