Ergomed H1 2019 Trading Update
Revenue and EBITDA for full year 2019 expected to be ahead of market expectations
Guildford, UK – 22 July 2019: Ergomed plc, (LSE: ERGO) (“Ergomed” or the “Company”), a provider of specialised services to the pharmaceutical industry, announces a trading update for the first half of 2019. The Company will provide further details of its first half performance with its interim results in September 2019.
Summary – trading ahead of expectations
Following a strong first half of the year, and the upgrade to market expectations in May 2019, Ergomed expects both revenue and EBITDA for the year ending 31 December 2019 to be ahead of current market expectations.
Strong trading and forward-looking order book
The strong trading seen across the Company at the start of the year continued throughout the first half of 2019. Unaudited revenues for H1 2019 are expected to be approximately £35.0 million (H1 2018: £25.7 million), an increase of 36%, with CRO revenues increasing 40% from £13.6 million to £19.0 million and PV revenues increasing 32% from £12.1 million to £16.0 million. Sales of new business for H1 2019 are strong, with the largest increase being in the CRO business.
At H1 2019 the Company continues to be debt-free and is expected to report net positive cash balances of around £8 million. The Company has now fully adopted IFRS 15 (revenue recognition) with effect from 1 January 2019 and comparative periods, therefore where relevant all figures are stated on an IFRS 15 basis.
In a separate press release issued today, Ergomed has announced the appointment of Rolf Soderstrom as a Non-Executive Director. Rolf joins the Board of Ergomed having been Chief Financial Officer of BTG plc from 2008 to 2018. Ergomed has also recently strengthened its Board with the appointments of Richard Barfield as Chief Financial Officer and Dr Jim Esinhart as a Non-Executive Director.
Dr Miroslav Reljanović, Executive Chairman of Ergomed, commented: “Following a strong start to the year, we are pleased to have continued performing above expectations, and again upgrade guidance for FY19. Not only have we delivered growth as a profitable and cash-generative business, but we have also strengthened both the management team and the Board. Ergomed is in robust shape, and we are committed to our strategy of focusing on the opportunities in specialised CRO services and pharmacovigilance.”