25/03/2020

Ergomed plc: Audited Full Year Results for the year ended 31 December 2019

 

Revenue £68.3m (up 26.1%)

Adjusted EBITDA £12.5m (up from £2.3m in 2018)

Order book of future contracted revenue £124.1 million (up 13.6%)

New £30m credit facility

Guildford, UK25 March 2020: Ergomed plc (LSE: ERGO) ('Ergomed' or the 'Company'), a company focused on providing specialised services to the pharmaceutical industry, today announces its audited Full Year Results for the year ended 31 December 2019.

 

Selected Financial Highlights

 

Audited

Figures in £ millions, unless otherwise stated

 

Full year

2019

 

 

Full year

2018

%Change

Total Revenue

68.3

54.1

+26.1%

 

 

 

 

Gross Profit

29.5

19.3

+53.3%

Gross Margin

43.3%

35.6%

 

 

 

 

 

Adjusted EBITDA 1

12.5

2.3

+454.6%

Exceptional Items

(2.4)

(8.5)

 

 

 

 

 

Cash and Cash Equivalents

14.3

5.2

+174.8%

 

 

 

 

Order book at 31 December

124.1

109.2

+13.6%

Dr Miroslav Reljanović, Executive Chairman of Ergomed, said: “2019 has been a transformational year for Ergomed, delivering strong financial results and executing our focused strategy to become a leading global provider of specialist services to the pharmaceutical industry. We performed strongly across the business and the post year-end acquisition of Ashfield Pharmacovigilance Inc was a major strategic step for Ergomed in the US and in expanding our global presence. A substantial improvement in our profitability and cash resources, our significantly increased order book and new credit facility position Ergomed with financial resilience and a solid platform from which to achieve growth over the long term.

“The Group is monitoring closely the rapid development of the coronavirus outbreak. COVID-19 represents an unprecedented global healthcare challenge and we are proud to have been able to so rapidly play an integral role in establishing a clinical trial with a hospital at the heart of the outbreak in Bergamo, Italy. We hope we will be able to bring our expertise and proven capabilities to bear in advancing drug development in the field and improving outcomes for patients.”

Key Financial Highlights

 

  • Revenue of £68.3 million increased by 26.1% on a comparable basis (2018: £54.1 million)
  • Revenue growth in Pharmacovigilance (PV) up 28.6% to £35.4 million (2018: £27.5 million)
  • Revenue growth in Clinical Research Outsourcing (CRO) up 23.6% to £32.9 million (2018: £26.6 million)
  • Gross profit up 53% to £29.5 million (2018: £19.3 million)
  • Adjusted EBITDA 1 of £12.5 million (2018: £2.3 million)
  • Basic EPS of 12.0p (2018: loss of 20.0p)
  • Cash and cash equivalents up 174.8% to £14.3 million at 31 December 2019 (31 December 2018: £5.2 million)
  • Order book of £124.1 million future contracted revenue up 13.6% at 31 December 2019 (31 December 2018: £109.2 million)

 

Operational Highlights Including Post Year-End

 

  • Targeted services business strategy around our core expertise has generated strong growth across the business
  • Strengthened management team and Board through the appointment of senior leaders with significant industry experience and proven track records in building international businesses
  • Continued focus on business development and cross-selling opportunities has resulted in double digit order book growth and enhanced confidence in the revenue pipeline for 2020
  • Post year-end acquisition of Ashfield Pharmacovigilance Inc for $10 million cash will expand PrimeVigilance’s geographical reach to North America and enhance the platform for broader clinical services in the region
  • Post year-end initiation of a study at the Papa Giovanni XXIII Hospital in Bergamo, Italy of siltuximab, an interleukin (IL)-6 targeted monoclonal antibody, for the treatment of patients with serious respiratory complications caused by COVID-19

 

New Credit Facility

 

  • Post year-end, agreed a new three-year, multi-currency, £30 million credit facility with the Group’s bankers to facilitate the pursuit of the growth strategy

 

COVID-19 Update

 

  • Ergomed is monitoring closely the rapid development of events in relation to the coronavirus outbreak. To date we have not seen a material impact on the business. Plans for financial risk mitigation are in place and will be implemented should this become necessary. The Group has a strong balance sheet and a £30m credit facility and is a resilient business in the face of the risks posed by COVID-19.

 

Notes:

[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.

 

Conference call for analysts:

A conference call for analysts will be held at 9.30am GMT on 25 March 2020

 

Conference call details:

 

Participant dial-in: 08003767922
International dial-in:
+44 (0) 2071 928000
Participant code:
7082317

 

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 – for UK enquiries

Tel: +44 (0) 20 3709 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, profitable services business includes an industry leading suite of specialist pharmacovigilance (PV) solutions, integrated under the PrimeVigilance brand, a full range of high-quality contract 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.

 

Forward-Looking Statements

 

Certain statements contained within the announcement are forward-looking statements and are based on current expectations, estimates and projections about the potential returns of Ergomed plc (“Ergomed”) and the industry and markets in which Ergomed operates, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline" and variations of such words and similar expressions are intended to identify such forward-looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment.

 

These forward-looking statements speak only as of the date of this announcement. Ergomed expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Ergomed’s expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.

 


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