TIDMERGO
RNS Number : 7547N
Ergomed plc
25 January 2023
Ergomed 2022 Trading Update
Strong performance in 2022 delivering excellent financial
results in line with expectations
Board changes
-- Revenue growth of 22.5% over 2021 to GBP145.3 million
-- Adjusted EBITDA1 in line with market expectations
-- Order book growth of 23.1% provides strong revenue visibility
-- Strong cash generation to GBP19.1 million and debt free
-- Michael Spiteri appointed Chief Transformation and Technology Officer
-- Jonathan Curtain to be appointed new CFO, Richard Barfield to retire
Guildford, UK - 25 January 2023 : 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 2022. The Company
will provide further details of its performance for 2022 in its
preliminary results announcement expected in March 2023.
Strong trading with revenue growth in line with expectations
Both Ergomed's pharmacovigilance ( " PV " ) and clinical
research organisation ( " CRO " ) businesses, as well as the ADAMAS
business acquired in February 2022, continued to trade strongly
through to the year end. As a result, revenue for 2022 is expected
to be approximately GBP145.3 million, an increase of 22.5% over
prior year (2021: GBP118.6 million), in line with market
expectations (up 14.5% in constant currency).
The CRO division saw total revenue increase by 22.9% from
GBP58.1 million in 2021 to GBP71.4 million in 2022 (up 14.7% in
constant currency). This included service fee revenue up 27.3% to
GBP50.8 million (2021: GBP39.9 million) (up 18.9% in constant
currency).
The PV division saw total revenue increase by 22.2% from GBP60.5
million in 2021 to GBP73.9 million in 2022 (up 14.3% in constant
currency).
Adjusted EBITDA in line with expectations
Adjusted EBITDA for the year ended 31 December 2022 is expected
to be in line with current market expectations, reflecting the
strong operational performance delivered in both the existing
clinical research and pharmacovigilance businesses and in the
ADAMAS business acquired in February 2022.
Strong order book provides excellent forward visibility
Ergomed's consolidated PV, CRO and ADAMAS order book has grown
strongly during 2022 to an expected total level of around GBP295.0
million, an increase of 23.1% over the full year (2021: GBP239.7
million). The order book continues to highlight Ergomed's growing
presence in its key markets as well as the resilience of the
sectors in which it operates, and provides strong visibility of
revenue for 2023 and later years.
ADAMAS acquisition and integration
The Company acquired ADAMAS on 9 February 2022 for a net cash
consideration of GBP24.2 million. The business has been
successfully integrated with significant synergistic benefits and
has achieved its financial expectations for 2022.
Cash and debt
The Company continued to be strongly cash generative, with cash
and equivalent balances of GBP19.1 million, after payment of
GBP24.2 million net cash for the ADAMAS acquisition (2021: GBP31.2
million). Ergomed is debt free and has unutilised banking
facilities of GBP80.0 million.
Board and Senior Executive Changes
We have continued to strengthen the Board and Senior Executive
Team with key appointments during the second half of 2022.
Michael Spiteri transitioned to the role of Chief Transformation
and Technology Officer in November 2022, having formerly been a
Non-Executive Director. Michael will lead the implementation of new
market-leading technology solutions, both to enhance Ergomed's
overall services to clients as well as to increase efficiencies in
the delivery of those services.
The Board appointed John Dawson CBE and Anne Whitaker as
Non-Executive Directors in March and June 2022 respectively. John,
formerly Chief Executive Officer of Oxford Biomedica plc, was
appointed as Senior Independent Director in December 2022. Both
John and Anne have extensive life sciences industry experience,
including UK-listed healthcare and pharmaceutical services
companies.
Richard Barfield has informed the Board of his intention to
retire on 3 February 2023, following which he will cease to be a
Director. Jonathan Curtain will be appointed as Chief Financial
Officer. The Company intends to appoint Jonathan as an Executive
Director of the Board of Ergomed plc on 3 February 2023. A separate
Stock Exchange announcement has been released this morning with
further details.
Current year outlook
The Company enters 2023 with a positive outlook. Ergomed
continues to take market share and enjoy a resilient position in
the fast-growing rare disease, oncology and pharmacovigilance
sectors, and bolstered its offering during the year with the ADAMAS
acquisition which has a strong position in the specialist audit and
testing market. With a strong global presence, including in the
largest pharmaceutical market globally in the US, the Company
continues to deliver excellent operational execution across the
entire business.
Dr Miroslav Reljanović, Executive Chairman of Ergomed, said
:
"Ergomed has delivered another year of operational and financial
excellence, with strong revenue growth and adjusted EBITDA in line
with market expectations. The successful integration of ADAMAS has
further endorsed our acquisition strategy and our continued
significant organic growth demonstrates our ability to excel in
meeting the needs of our customers. With a strengthened Board and
senior executive team and robust order book, Ergomed is firmly
positioned for further growth both organically and through M&A.
We are confident in our future as a leading global provider of
specialist pharmaceutical services underpinned by market-leading
technology, and look forward enthusiastically to the coming
year."
(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.
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402
975
Miroslav Reljanović (Executive
Chairman)
Richard Barfield (Chief Financial Officer)
Jonathan Curtain (Deputy Chief Financial
Officer)
Keith Byrne (Senior Vice President,
Capital Markets and Strategy)
Numis (Nominated Adviser and Joint Tel: +44 (0) 20 7260
Broker) 1000
Freddie Barnfield / Euan Brown (Nominated
Adviser)
James Black (Broker)
Peel Hunt (Joint Broker) Tel: +44 (0) 20 7418
James Steel / Dr Christopher Golden 8900
Consilium Strategic Communications Tel: +44 (0) 20 3709
- for UK enquiries 5700
Chris Gardner / Matthew Neal ergomed@consilium-comms.com
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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