TIDMERGO
RNS Number : 5276G
Ergomed plc
27 July 2021
PRESS RELEASE
Ergomed H1 2021 Trading Update
-- Total revenue growth of 38.8% over H1 2020 to GBP56.0 million
(up 48.1% in constant currency*)
-- CRO division delivered strong growth with revenue up 90.7%
over H1 2020 to GBP27.2 million, including the MedSource business
acquired in 2020, with like-for-like growth of 16.1% (24.5% in
constant currency)
-- Total revenues and EBITDA for full year expected to be in
line with recently upgraded market expectations
-- Net new sales awards in H1 2021 increased by 50.8% over H1 2020
-- Growth in order book maintained - up 18.0% since 1 January
2021, providing high visibility into H2 2021 and beyond
-- Continued international expansion with growing presence in the USA
-- Cash balance increased to GBP24.6 million and debt free
*Constant currency growth is calculated by restating 2021
performance using 2020 exchange rates
Guildford, UK - 27 July 2021 : 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 2021. The Company
will provide further details on the first half performance in its
interim results in September 2021.
Strong trading in H1 2021
Ergomed had a strong first half of 2021 with total revenues for
H1 2021 of GBP56.0 million (H1 2020: GBP40.4 million), an increase
of 38.8% (48.1% in constant currency). Service fee revenues of
GBP47.6 million (H1 2020: GBP37.0 million) were up 28.6% (37.2% in
constant currency).
Revenues in PrimeVigilance, the pharmacovigilance (PV) business,
increased to GBP28.8 million from GBP26.1 million in H1 2020, up by
10.4% (16.2% in constant currency).
The Clinical Research Services (CRO) division, including
MedSource acquired in December 2020, saw its total revenues
increase by 90.7% from GBP14.3 million in H1 2020 to GBP27.2
million in H1 2021 (106.4% in constant currency). MedSource
performed in line with the acquisition business case. Excluding
revenues from MedSource, the CRO division saw revenues increase by
16.1% (24.5% in constant currency) from GBP14.3 million in H1 2020
to GBP16.6 million in H1 2021.
EBITDA for the full year is expected to be in line with the
upgraded market expectations following the Company's recent AGM
statement, with reported revenues in line with market expectations,
notwithstanding the FX headwinds due to a higher proportion of US
dollar denominated revenues.
Further strategic progress
The Company continued to make significant strategic progress in
the current year, demonstrating its ongoing resilience globally
through the pandemic and concluding its strategic transition to a
services-based business model. Ergomed is a recognised provider of
COVID-19 research support with involvement in a number of COVID-19
projects in its CRO and PV businesses globally.
PrimeVigilance, the Company's pharmacovigilance division, has
continued its strong growth, with the Ashfield Pharmacovigilance
business now fully integrated as its US operation. The CRO business
has seen further acceleration of the growth that resumed in the
second half of 2020 and the integration of MedSource is progressing
well.
Ergomed's international expansion is continuing at pace. Its
operational presence in the US continues to develop rapidly with
strong organic growth alongside the integration of the two new US
businesses acquired in 2020. There is also ongoing expansion into
further geographic areas, including the establishment of new legal
entities in key European countries and the recently announced new
operation in Japan, the fourth largest pharmaceutical market in the
world.
High sales in H1 2021 and excellent forward visibility
Net sales of new business for H1 2021 increased by 50.8% to
GBP90.8 million (H1 2020: GBP60.2 million), accelerated by
effective cross-selling activities between the CRO and PV
businesses as well as the expanded geographic territory and client
bases from the two US acquisitions in 2020.
Ergomed's order book remains healthy at GBP227.8 million at the
end of H1 2021, an increase of 18.0% from GBP193.1 million at 31
December 2020 and up 50.5% on the prior year (H1 2020: GBP151.4
million), providing excellent visibility of contracted revenues for
the second half of the year and beyond.
Cash balances at 30 June 2021 were GBP24.6 million and the
Company continues to be debt-free with additional facilities of up
to GBP30 million available to support expansion.
Dr Miroslav Reljanović, Executive Chairman of Ergomed,
commented: "Ergomed has delivered exceptional results and
operational progress during the first half of the year. We have
concluded our transition to a services-based business model and
rapidly integrated recent acquisitions. Growth in our
pharmacovigilance business has continued and the CRO business saw a
substantial revenue increase supported by the recent US
acquisition. Our excellent sales performance, significantly
increased order book and robust financial platform position the
Company to maintain momentum and deliver on our strategy for
sustained high growth."
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402 975
Miroslav Reljanović (Executive Chairman)
Richard Barfield (Chief Financial Officer)
Numis Securities Limited (Nominated Adviser and Joint Broker) Tel: +44 (0) 20 7260 1000
Freddie Barnfield / Matthew O'Dowd
James Black (Broker)
Peel Hunt LLP (Joint Broker) Tel: +44 (0) 20 7418 8900
James Steel / Dr Christopher Golden
Consilium Strategic Communications Tel: +44 (0) 20 3709 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 .
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END
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