TIDMERGO
RNS Number : 6844T
Ergomed plc
26 July 2022
PRESS RELEASE
Ergomed H1 2022 Trading Update
Strong H1 performance: high growth, resilience and positive
outlook
-- Total revenue growth of 24.8% over H1 2021 to GBP69.9 million
-- Total order book of GBP284.5 million with growth of 18.7%
since 1 January 2022, providing high visibility into H2 2022 and
beyond
-- Total revenue and adjusted EBITDA for full year expected to
be in line with current market expectations
-- ADAMAS acquired in February 2022 ; integration progressing well
-- Strong operational cash flow with cash balance of GBP12.0
million after GBP24.2 million net cash purchase of ADAMAS
-- Debt free with available debt facilities recently increased
from GBP30 million to GBP80 million
Guildford, UK - 26 July 2022 : Ergomed plc (LSE: ERGO)
("Ergomed" or the "Company"), a company focused on providing
specialised services to the pharmaceutical industry, today
announces a trading update for the first half of 2022. The Company
will provide further details on the first half performance in its
interim results in September 2022.
Strong trading in H1 2022 with positive outlook
Ergomed had a strong first half of 2022 with total revenue of
GBP69.9 million (H1 2021: GBP56.0 million), an increase of 24.8%
(20.0% in constant currency) over H1 2021. Service fee revenue of
GBP59.8 million (H1 2021: GBP47.6 million) were up 25.6% (20.7% in
constant currency) over H1 2021.
The Clinical Research Services (CRO) business increased its
total revenue by 26.2% (21.4% in constant currency) to GBP34.3
million from GBP27.2 million in H1 2021.
PrimeVigilance, the pharmacovigilance (PV) business, increased
its total revenue by 23.4% (18.7% in constant currency) to GBP35.6
million from GBP28.8 million in H1 2021.
Cash balances at 30 June 2022 were GBP12.0 million (H1 2021:
GBP24.6 million), after the GBP24.2 million net cash purchase of
ADAMAS, with strong underlying operating cash flow. The Company has
increased its multi-currency revolving credit facility (RCF) from
GBP30.0 million to GBP80.0 million, comprising a GBP50.0 million
facility and an additional GBP30.0 million accordion. The RCF is
currently undrawn and the Company remains debt free, with these
substantial new facilities available to support continued
expansion.
Revenue and adjusted EBITDA for the full year are expected to be
in line with current market expectations, demonstrating the
Company's resilience and ability to maintain its strong financial
performance despite the challenging macro-economic environment.
Strong order book growth and excellent forward visibility
Ergomed's order book remains healthy at GBP284.5 million at the
end of H1 2022, an increase of 18.7% from GBP239.7 million at 31
December 2021 and up 24.9% on the prior year (H1 2021: GBP227.8
million), providing excellent visibility of contracted revenue for
the second half of the year and beyond.
Acquisition of ADAMAS
Ergomed completed the acquisition of ADAMAS, an international
specialist consultancy offering a full range of independent quality
assurance services, in February 2022. The integration of ADAMAS
into Ergomed's business is progressing well and further significant
synergistic benefits are expected.
Strengthening of the Board and senior leadership team
During the first half of 2022, John Dawson, CBE joined the Board
as an independent Non-Executive Director and Chair of the Audit
Committee, and Anne Whitaker joined as an independent Non-Executive
Director. The Company has continued to attract senior executives
with highly relevant experience and expertise in our areas of CRO
and PV specialisation, with recent key appointments in commercial
leadership roles.
Further strategic progress
The Company has continued to make considerable strategic
progress in the current year.
The CRO business has seen further robust growth in the first
half of 2022, including a number of major new awards. Ergomed's CRO
business recently celebrated 25 years since its foundation and has
continued its long tradition of specialism and innovation with the
launch in February 2022 of the Ergomed Rare Disease Innovation
Centre, providing tailored and innovative solutions for sponsors of
rare disease drug development programs.
PrimeVigilance has also delivered a significant revenue increase
in the first half of 2022 driven by steady sales and repeat
business, continuing to demonstrate its long-term resilience and
ability to generate sustained growth during a time of market
volatility. Further substantial progress has been achieved in the
development and deployment of proprietary automation technology.
PrimeVigilance has also invested further in training and skills
development across its existing team, whilst continuing to attract
senior industry experts to join the business. These investments
have enabled organisational improvements to further enhance
efficiency and productivity.
Ergomed's organic international expansion has continued at pace
with new legal entities in France and Italy, with others in
progress in Romania, Ireland and Portugal.
Dr Miroslav Reljanović, Executive Chairman of Ergomed,
commented:
"Ergomed has delivered further significant strategic progress in
H1 2022. Our strong organic growth has continued, with expansion
into new territories and further strengthening of the Company's
Board and leadership team. We also continued to execute our
disciplined M&A strategy with the acquisition of ADAMAS. This
progress once again demonstrates Ergomed's robustness, resilience
and ability to sustain high growth, notwithstanding the challenging
macro-economic environment. The Board expects to deliver the
anticipated trading growth and financial results for the full year
in line with current market expectations , and we look forward with
confidence to the rest of this year and beyond."
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402 975
Miroslav Reljanović (Executive
Chairman)
Richard Barfield (Chief Financial Officer)
Keith Byrne (Senior Vice President,
Capital Markets & Strategy)
Numis Tel: +44 (0) 20 7260 1000
Freddie Barnfield / Euan Brown (Nominated
Adviser)
James Black (Broker)
Peel Hunt (Joint Broker) Tel: +44 (0) 20 7418 8852
James Steel / Dr. Christopher Golden
Consilium Strategic Communications Tel: +44 (0) 20 3709 5700
Chris Gardner / Matthew Neal / Angela ergomed@consilium-comms.com
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, a full range of high-quality clinical
research and trial management services under the Ergomed brand
(CRO) and mission-critical regulatory compliance and consulting
services under the ADAMAS brand. For further information, visit:
http://ergomedplc.com .
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END
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