Ergomed reports solid overall growth in update

22nd Jun 2023 13:55

(Sharecast News) - Pharmaceutical services provider Ergomed said in an update on Thursday that its revenues had demonstrated solid overall growth, reflecting the resilience of its services-based business model and the global strength of its offerings.

The AIM-traded firm, which was holding its annual general meeting, said that to ensure sustainable future growth, it had continued to invest in commercial expansion, infrastructure, and platform development.

One of its key investment areas was its North American commercial capabilities, as it aimed to strengthen its presence in the market.

Additionally, the company said it had focussed on expanding its global senior leadership presence and enhancing its digital capabilities.

Ergomed said those investments were aimed at further expanding its service offerings to its client base.

In line with its disciplined approach to strategic mergers and acquisitions (M&A), Ergomed said it was actively seeking and evaluating potential acquisitions that would complement its existing business and enhance its global footprint.

The strategic approach aligned with its goal of providing comprehensive and specialised services to the pharmaceutical industry.

Financially, Ergomed said it remained in a robust position, with no outstanding debt and a strong balance sheet.

The firm said it had unutilised facilities of up to £80m available to support its continued expansion, both organically and through potential acquisitions.

"Ergomed continues to demonstrate its resilience and increasing competitive strength, notwithstanding the continued macro-economic challenges," said executive chairman Dr Miroslav Reljanović.

"Based on our trading performance since the start of the year, the board anticipates financial results for the full year 2023 to be in line with market expectations.

"In line with previous practice, we will provide more detail on trading during the first half of 2023 and the outlook for the 2023 financial year in the company's July trading update."

At 1335 BST, shares in Ergomed were up 6.7% at 971p.

Reporting by Josh White for Sharecast.com.