TIDMERGO
RNS Number : 4529Z
Ergomed plc
25 January 2022
PRESS RELEASE
Ergomed 2021 Trading Update
Robust operational execution in 2021 delivers excellent
financial results
Successful strategic positioning creates platform for further
growth
-- Adjusted EBITDA [1] ahead of market expectations
-- Total revenue growth of 37.3% over 2020 to GBP118.6 million
(up 44.3% in constant currency [2] )
-- Robust order book growth, up 24.2% to GBP240 million,
providing excellent visibility into 2022 and beyond
-- Further strong US growth with revenues up 59.5% (up 71.0% in
constant currency), with strengthened US strategic presence driven
by prior year acquisitions
-- Strong cash generation, cash increased GBP12.2 million to GBP31.2 million and debt free
Guildford, UK - 25 January 2022 : Ergomed plc (LSE: ERGO)
("Ergomed" or the "Company"), a company focused on providing
specialised services to the pharmaceutical industry , announces a
trading update for the year ended 31 December 2021. The Company
will provide further details of its performance for 2021 in its
preliminary results announcement expected in March 2022.
Adjusted EBITDA ahead of expectations
Adjusted EBITDA for the year ended 31 December 2021 is expected
to be ahead of current market expectations, reflecting the
excellent operational execution and profit focus delivered across
the business.
Revenue growth and strategic development of robust US platform:
strongly positioned for continued growth
Revenue in the key strategic market of the US grew 59.5% over
prior year on a reported basis (up 71.0% on a constant currency
basis). This revenue growth, combined with the addition of a number
of key senior industry leaders into the US management team and
ongoing investment in employment, builds on acquisitions in the US
in prior years which are now fully integrated. With these
developments, Ergomed is delivering on its strategy to position the
business for further expansion in the US market, the largest
pharmaceutical services market globally.
Strong trading and forward-looking order book
The excellent trading performance seen in both Ergomed's
Pharmacovigilance ( " PV " ) and Clinical Research Organisation ( "
CRO " ) businesses during the first half of 2021 continued through
to the year end and resulted in a strong order book at the start of
2022.
Revenues for 2021 are expected to be approximately GBP118.6
million on a reported basis, an increase of 37.3% over prior year
(2020: GBP86.4 million), achieving market expectations despite
continuing FX headwinds. On a constant currency basis revenues are
expected to be GBP124.7 million, an increase of 44.3% over
2020.
The CRO division, including MedSource acquired in December 2020,
saw total revenue increase by 85.6% from GBP31.3 million in 2020 to
GBP58.1 million in 2021 (up 97.4% in constant currency). Excluding
MedSource, the CRO division revenue increased by 26.2% from GBP30.2
million in 2020 to GBP38.1 million in 2021 on a reported basis and
by 33.4% to GBP40.3 million on a constant currency basis.
The PV division saw revenues increase by 9.8% overall to GBP60.5
million (2020: GBP55.1 million) on a reported basis and by 14.2% to
GBP62.9 million on a constant currency basis.
The strong revenue growth and continued focus on profitability
in 2021 are expected to result in adjusted EBITDA for 2021 being
ahead of current market expectations.
Strong order book provides excellent forward visibility
Both the PV and CRO order books have shown robust growth during
2021. The total combined order book at 31 December 2021 is expected
to be approximately GBP240 million, up 24.2% (2020: GBP193
million), providing excellent visibility of contracted revenues for
2022 and later years.
The Company continued to be strongly cash generative and
debt-free, with cash and equivalent balances of GBP31.2 million up
GBP12.2 million (2019: GBP19.0 million) and unutilised banking
facilities of GBP30.0 million.
Current year outlook
The Company's outlook for 2022 is positive. Ergomed is strongly
positioned in the resilient and fast-growing rare disease, oncology
and pharmacovigilance sectors, now has a significant presence in
the largest pharmaceutical market globally in the US and is
delivering excellent operational execution across the entire
business.
Dr Miroslav Reljanović, Executive Chairman of Ergomed, said
:
"Ergomed has delivered another outstanding year operationally
and financially, with results ahead of market expectations. Our
further significant organic growth demonstrates the strength of our
positioning in our key markets and was augmented by the
contribution of our latest successfully integrated acquisitions,
particularly in the US. We start 2022 with an exceptionally strong
platform - a robust order book, a track record of delivery and an
offering that demonstrably meets the needs of a growing market.
Ergomed is firmly positioned for further growth, both organically
and through M&A, via geographic expansion and broadening of our
service offering. We remain extremely confident in our future as a
leading global provider of specialist pharmaceutical services."
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402
975
Miroslav Reljanović (Executive
Chairman)
Richard Barfield (Chief Financial Officer)
Numis Securities Limited (Nominated Tel: +44 (0) 20 7260
Adviser and Joint Broker) 1000
Freddie Barnfield / Euan Brown (Nominated
Adviser)
James Black (Broker)
Peel Hunt Securities Limited (Joint Tel: +44 (0) 20 7418
Broker) 8900
James Steel / Dr Christopher Golden
Consilium Strategic Communications Tel: +44 (0) 20 3709
- for UK enquiries 5700
Chris Gardner / Matthew Neal ergomed@consilium-comms.com
/ Angela Gray
About Ergomed plc
Ergomed provides specialist services to the pharmaceutical
industry spanning all phases of clinical development, post-approval
pharmacovigilance and medical information. Ergomed's fast-growing
services business includes an industry-leading suite of specialist
pharmacovigilance (PV) solutions, integrated under the
PrimeVigilance brand and a full range of high-quality clinical
research and trial management services under the Ergomed brand
(CRO). For further information, visit: http://ergomedplc.com .
1 - Adjusted EBITDA is defined as profit before tax for the
year, adding back finance costs, depreciation and amortisation,
share-based payments, change in fair value of contingent
consideration, acquisition costs and exceptional items.
2 - Constant currency growth is calculated by restating 2021
performance using 2020 exchange rates.
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END
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