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CEO of hVIVO steps down as profits fall
Clinical development and drug discovery services firm hVIVO announced on Thursday that Kym Denny is stepping down as chief executive, with immediate effect.
The AIM-traded firm said executive chairman Trevor Phillips would take over Denny's responsibilities.
"We would like to thank Kym for her contribution to the Group and wish her well for the future," said Trevor Phillips.
The news came at the same time as hVIVO's preliminary results for the year ended 31 December, with revenue dalling to £10.9m from £19.9m, which included £8mfrom third-party client engagements and £2.9m from equity investments.
A further £1.3m of other income from a cost-share grant with the US governmental agency Defense Advanced Research Projects Agency was also highlighted.
Also, the board noted a £1m scope change to the FLU-v study had not been recognised in the consolidated statement of comprehensive income, as it was entirely funded by hVIVO through a royalty purchase.
Gross profit slipped to £3.6m with a gross profit margin of 32.7%, fro £4.2m and 21.3% in 2016, through improved volunteer recruitment funnel efficiencies, speed of performance delivery and headcount reduction.
The company's research and development expense was £6.1m, down slightly from £6.3m, which the board said was due to a more concentrated spend on a smaller number of prioritised projects, balanced by the flu contagiousness project, with the DARPA cost-share grant included in other income.
Administrative expenses totalled £11.4m, down from £13.8m, which was reportedly driven by headcount reductions and a continued drive to tighten third-party costs.
Short-term deposits, cash and cash equivalents fell to £20.3m at year-end from £25.7m, as a result of the company building a client clinical study pipeline, invoicing milestones and good cash collection, together with operational efficiencies and cost savings initiatives.