Ergomed 2022 Trading Update
25/01/2023 07:00
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RNS Number : 7547N Ergomed plc 25 January 2023
Ergomed 2022 Trading Update
Strong performance in 2022 delivering excellent financial results in line with
expectations
Board changes
* Revenue growth of 22.5% over 2021 to £145.3 million
* Adjusted EBITDA(1) in line with market expectations
* Order book growth of 23.1% provides strong revenue visibility
* Strong cash generation to £19.1 million and debt free
* Michael Spiteri appointed Chief Transformation and Technology Officer
* Jonathan Curtain to be appointed new CFO, Richard Barfield to retire
Guildford, UK - 25 January 2023: 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 2022. The Company will provide further details of its performance for
2022 in its preliminary results announcement expected in March 2023.
Strong trading with revenue growth in line with expectations
Both Ergomed's pharmacovigilance ("PV") and clinical research organisation
("CRO") businesses, as well as the ADAMAS business acquired in February 2022,
continued to trade strongly through to the year end. As a result, revenue for
2022 is expected to be approximately £145.3 million, an increase of 22.5%
over prior year (2021: £118.6 million), in line with market expectations (up
14.5% in constant currency).
The CRO division saw total revenue increase by 22.9% from £58.1 million in
2021 to £71.4 million in 2022 (up 14.7% in constant currency). This included
service fee revenue up 27.3% to £50.8 million (2021: £39.9 million) (up
18.9% in constant currency).
The PV division saw total revenue increase by 22.2% from £60.5 million in
2021 to £73.9 million in 2022 (up 14.3% in constant currency).
Adjusted EBITDA in line with expectations
Adjusted EBITDA for the year ended 31 December 2022 is expected to be in line
with current market expectations, reflecting the strong operational
performance delivered in both the existing clinical research and
pharmacovigilance businesses and in the ADAMAS business acquired in February
2022.
Strong order book provides excellent forward visibility
Ergomed's consolidated PV, CRO and ADAMAS order book has grown strongly during
2022 to an expected total level of around £295.0 million, an increase of
23.1% over the full year (2021: £239.7 million). The order book continues to
highlight Ergomed's growing presence in its key markets as well as the
resilience of the sectors in which it operates, and provides strong visibility
of revenue for 2023 and later years.
ADAMAS acquisition and integration
The Company acquired ADAMAS on 9 February 2022 for a net cash consideration of
£24.2 million. The business has been successfully integrated with significant
synergistic benefits and has achieved its financial expectations for 2022.
Cash and debt
The Company continued to be strongly cash generative, with cash and equivalent
balances of £19.1 million, after payment of £24.2 million net cash for the
ADAMAS acquisition (2021: £31.2 million). Ergomed is debt free and has
unutilised banking facilities of £80.0 million.
Board and Senior Executive Changes
We have continued to strengthen the Board and Senior Executive Team with key
appointments during the second half of 2022.
Michael Spiteri transitioned to the role of Chief Transformation and
Technology Officer in November 2022, having formerly been a Non-Executive
Director. Michael will lead the implementation of new market-leading
technology solutions, both to enhance Ergomed's overall services to clients as
well as to increase efficiencies in the delivery of those services.
The Board appointed John Dawson CBE and Anne Whitaker as Non-Executive
Directors in March and June 2022 respectively. John, formerly Chief Executive
Officer of Oxford Biomedica plc, was appointed as Senior Independent Director
in December 2022. Both John and Anne have extensive life sciences industry
experience, including UK-listed healthcare and pharmaceutical services
companies.
Richard Barfield has informed the Board of his intention to retire on 3
February 2023, following which he will cease to be a Director. Jonathan
Curtain will be appointed as Chief Financial Officer. The Company intends to
appoint Jonathan as an Executive Director of the Board of Ergomed plc on 3
February 2023. A separate Stock Exchange announcement has been released this
morning with further details.
Current year outlook
The Company enters 2023 with a positive outlook. Ergomed continues to take
market share and enjoy a resilient position in the fast-growing rare disease,
oncology and pharmacovigilance sectors, and bolstered its offering during the
year with the ADAMAS acquisition which has a strong position in the specialist
audit and testing market. With a strong global presence, including in the
largest pharmaceutical market globally in the US, the Company continues to
deliver excellent operational execution across the entire business.
Dr Miroslav Reljanović, Executive Chairman of Ergomed, said:
"Ergomed has delivered another year of operational and financial excellence,
with strong revenue growth and adjusted EBITDA in line with market
expectations. The successful integration of ADAMAS has further endorsed our
acquisition strategy and our continued significant organic growth demonstrates
our ability to excel in meeting the needs of our customers. With a
strengthened Board and senior executive team and robust order book, Ergomed is
firmly positioned for further growth both organically and through M&A. We
are confident in our future as a leading global provider of specialist
pharmaceutical services underpinned by market-leading technology, and look
forward enthusiastically to the coming year."
(1) Adjusted EBITDA is defined as profit before tax for the year, adding back
finance costs, depreciation and amortisation, share-based payments, change in
fair value of contingent consideration, acquisition costs and exceptional
items.
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402 975
Miroslav Reljanović (Executive Chairman)
Richard Barfield (Chief Financial Officer)
Jonathan Curtain (Deputy Chief Financial Officer)
Keith Byrne (Senior Vice President, Capital Markets and Strategy)
Numis (Nominated Adviser and Joint Broker) Tel: +44 (0) 20 7260 1000
Freddie Barnfield / Euan Brown (Nominated Adviser)
James Black (Broker)
Peel Hunt (Joint Broker) Tel: +44 (0) 20 7418 8900
James Steel / Dr Christopher
Golden
Consilium Strategic Communications - for UK enquiries Tel: +44 (0) 20 3709 5700
Chris Gardner / Matthew Neal ergomed@consilium-comms.com
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 mission-critical regulatory compliance and consulting services under the
ADAMAS brand. For further information, visit: http://ergomedplc.com
(http://ergomedplc.com) .
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