Ergomed trading in line after solid first half

25th Jul 2023 10:14

(Sharecast News) - Pharmaceutical service specialist Ergomed descried a robust first-half performance in an update on Tuesday, as well as a positive outlook for the future.

The AIM-traded company said revenue in the first six months of the year totalled £76.7m - up 10% year-on-year, or 7% at constant currency.

It said its clinical research services (CRO) business played a significant role in that growth, as it experienced an 11% increase in revenue to £38m.

Additionally, PrimeVigilance - its pharmacovigilance (PV) business - experienced 9% revenue growth, to £38.7m.

As at 30 June, Ergomed boasted a cash position of £26m, improving from £12m at the same point in 2022.

The firm said its underlying operating cash flow generation during the time was positive.

Additionally, Ergomed said it remained debt-free, and held unused facilities totalling £80m, which could be leveraged to support further organic expansion and acquisitions.

Looking ahead, Ergomed said it expected its revenue and adjusted EBITDA for the full year would be in line with market expectations.

"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," said executive chairman Dr Miroslav Reljanović.

"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.

Dr Reljanović said that additionally, Ergomed was focussing on prudent cost management and executing its "disciplined approach" to mergers and acquisitions.

"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."

Ergomed said it would report its interim results for the first half of 2023 in September.

At 1031 BST, shares in Ergomed were up 3.17% at 1,075p.

Reporting by Josh White for Sharecast.com.