TIDMERGO
RNS Number : 8391M
Ergomed plc
26 January 2021
PRESS RELEASE
Ergomed 2020 Trading Update
-- Adjusted EBITDA ahead of market expectations
-- Total revenue growth 26.5% over 2019 (2020: GBP86.4 million vs 2019: GBP68.3 million)
-- Strategic acquisitions in CRO and pharmacovigilance in the
USA strengthen global specialist leadership
-- CRO revenues returned to growth with H2 2020 up 11.2% over H1 2020
-- PV revenues increased by 56% overall (30% organic) over 2019
-- Forward visibility underpinned by strong order book up 53%
Guildford, UK - 26 January 2021 : 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 2020. The Company
will provide further details of its performance for 2020 in its
preliminary results announcement expected in March 2021.
Adjusted EBITDA ahead of expectations
Following the positive results for the first half of the year
reported in September 2020, Ergomed continued to deliver strong
year on year top-line growth and financial performance across the
business and expects revenue for the year ended 31 December 2020 to
be in line with current market expectations and adjusted EBITDA for
the year ended 31 December 2020 to be ahead of current market
expectations.
Significant US acquisitions completed
Ergomed completed the acquisitions of Ashfield Pharmacovigilance
("Ashfield PV") in January 2020 and MS Clinical Services, LLC
("MedSource") in December 2020, considerably strengthening its
position in the key strategic market in the USA, the largest global
pharmaceutical services market, adding over 60 new customers and
200 professional staff.
Strong trading and forward-looking order book
The positive trading performance seen in both Ergomed's
pharmacovigilance ( " PV " ) and its Clinical Research Organisation
( " CRO " ) businesses during the first six months of the year has
continued through to the year end and resulted in a strong order
book at the start of 2021.
Revenues for 2020 are expected to be approximately GBP86.4
million (including GBP1.1 million revenues in MedSource in December
2020), an increase of 26.5% over prior year (2019: GBP68.3
million).
PV revenues increased by 56% overall to GBP55.1 million (2019:
GBP35.4 million) and by 30% to GBP46.0 million on a like for like
basis, excluding the impact of Ashfield PV (now PrimeVigilance
USA).
CRO revenues were broadly flat for the full year at GBP31.3
million (including GBP1.1 million MedSource revenues), (2019:
GBP32.9 million, including GBP1.6 million one-off arising from
exceptional change orders). CRO revenues increased in H2 2020 on an
organic basis to GBP15.9 million, up 11.2% over H1 2020 and up
15.2% over prior year (H1 2020: GBP14.3 million).
The strong revenues and continued focus on profitability in 2020
are expected to result in adjusted EBITDA [1] for 2020 being ahead
of current market expectations.
The PV and CRO order books have grown organically and been
augmented by the acquisitions of Ashfield PV and MedSource. The
total combined order book at 31 December 2020 is expected to be
approximately GBP190 million, up 53% over prior year (2019: GBP124
million).
The Company continued to be debt-free at the year end with cash
and equivalent balances of GBP18.9 million (2019: GBP14.3 million)
and unutilised banking facilities of GBP30.0 million.
Current year outlook
The Company's outlook for 2021 is positive, bolstered by the
strong order book and the acquisitions of Ashfield PV and
MedSource. These acquisitions considerably strengthen Ergomed's
presence in the strategically important US market and globally,
further enhancing growth potential in both the PV and CRO
businesses.
Dr Miroslav Reljanović, Executive Chairman of Ergomed, said :
"In 2020 Ergomed demonstrated the resilience and robustness of our
services business model, continuing our strong organic growth and
completing key strategic acquisitions in the USA in both our
pharmacovigilance and CRO businesses. Despite the global COVID-19
pandemic, Ergomed performed ahead of market expectations for the
full year. We start 2021 from a position of considerable strength,
in a robust financial and strategic position and with a strong
order book to support our strategy of leadership as a
pharmaceutical services specialist with a global presence."
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402
975
Miroslav Reljanović (Executive
Chairman)
Richard Barfield (Chief Financial Officer)
Numis Securities Limited Tel: +44 (0) 20 7260
1000
Freddie Barnfield / Huw Jeremy (Nominated
Adviser)
James Black (Broker)
Consilium Strategic Communications Tel: +44 (0) 20 3709
- for UK enquiries 5700
Chris Gardner / Sue Stuart ergomed@consilium-comms.com
Matthew Neal / Olivia Manser
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 an internationally recognised specialist expertise in
orphan drug development, under PSR. 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, acquisition-related contingent consideration,
change in fair value of contingent consideration, acquisition costs
and exceptional items. Adjusted EBITDA is management's key
financial metric for measuring ongoing operational
profitability.
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END
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