Ergomed hails "resilience" in tough environment as revenue rises

(Alliance News) - Ergomed PLC on Tuesday said it showed "competitive strength" in the first half year, with increased revenue and expectations for further growth.

The Guildford, England-based company, which provides specialised services to the pharmaceutical industry, said it expects to report a revenue increase of 10% to GBP76.7 million in the first half of 2023, from GBP69.9 million a year prior.

Revenue for the Clinical Research Services business increased 11% to GBP38.0 million from GBP34.3 million, while revenue for Ergomed's pharmacovigilance business PrimeVigilence increased 9% to GBP38.7 million from GBP35.6 million.

"Ergomed continues to demonstrate its resilience and increasingly competitive strength, as shown by a strong first half of 2023," the firm commented.

Executive Chair Miroslav Reljanovic added: "Ergomed has made a very solid start to the year demonstrating continued growth, reflecting the resilience of the markets we operate in, our services-based business model, and the global appeal of our offering to our clients.

"We continue to execute on our strategy to transform the business by investing in technology and our commercial infrastructure which has been reflected in robust year over year growth of our new business pipeline."

The order book increased in value by 9% to GBP310 million at June 30 from GBP284 million at the same time last year, which Ergomed said "provides excellent visibility of [future] revenue". Cash at June 30 increased to GBP26.0 million from GBP12.0 million and Ergomed reported zero debt, leaving it in a "robust financial position".

Ergomed expects full-year adjusted earnings before interest, taxes, depreciation, and amortisation to be in line with market expectations. It said this would demonstrate its "resilience and ability to maintain its strong financial performance despite the continued challenging macro-economic environment".

Ergomed will release its full earnings for the half year in September.

"We expect to deliver on our expectations for financial results for 2023, and we look forward with confidence to the rest of this year and beyond," Reljanovic commented.

On Tuesday morning in London, shares in Ergomed were up 3.4% at 1,077.60 pence.

By Emma Curzon, Alliance News reporter

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