StockMarketWire.com - Clinical development services group hVIVO reported narrowed annual losses as asset writedowns offset an increase in revenues.

For 2018, pre-tax adjusted losses narrowed by 27.6% to £9.6m, while revenue & other income was up 10.5% to £13.6m. Research and development expense fell 21% to £4.8m. For 2019, the R&D was guided in a range of £1m to £1.5m.

Asset writedowns weighed on performance after management aligned assets to the future growth strategy of the business resulting in 'certain impairment charges and the rationalisation of premises and non-essential systems,' the company said.

'The current cost reduction programmes are forecasted to deliver improvements totalling £3.9 million across 2018, 2019 and 2020 and will complete the first stage,' the company said.

'The next phase of process efficiencies is expected to realise an additional operating cost saving per year of similar magnitude to the annual impact of the cost savings and will enable us to manage a significantly increased workload without a concomitant increase in our cost base.'

'The route to profitability requires more adjustments to the business and we are in the process of making additional changes and adjustments to the business operations as we target profitability in 2020.' At 8:00am: [LON:HVO] hVIVO Plc share price was +2p at 30.5p



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