The most important message from the CMD, in our view, is structural. HVO now operates four tightly integrated service lines that, together, support clients from pre-clinical through to Phase 3. Each pillar is a credible business in its own right; the power is in the continuity: a client can be won in one pillar and retained across several, lengthening relationships, smoothing revenue and reducing reliance on any single therapy-area cycle. This is the difference between a specialist vendor and a differentiated mid-sized CRO. FY25 was a clear trough (revenue £46.8m, adj. EBITDA £1.4m) as infectious-disease challenge demand and US activity fell away. But that is precisely the cyclicality management has spent the year diversifying against: acquisitions added cardiometabolic and laboratory revenue, the orderbook is rebuilding, Q1-26 RFPs are up ~50% year-on-year, and the company guides to high-single-digit revenue growth in 2026. With net cash of £14.3m, no debt, and the shares at ~0.8x EV/sales against CRO peers on 2.6x, we think the de-rating overstates the damage and ignores the new, integrated platform.
