Interim results for the six months ended 30 June 2014

Guildford, UK – 30 September 2014: Ergomed plc, (‘Ergomed’, AIM: ERGO) a profitable UK-based company dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its interim results for the six months ended 30 June 2014.

 

KEY HIGHLIGHTS

Financial highlights

Ergomed plc

• Revenues up 14% in H1 2014 to £7.8 million from £6.9 million in H1 2013
• Recurring revenues (excluding milestones) up 40% in H1 2014 to £7.8 million from £5.6 million in H1 2013
• Recurring operating profit up in H1 2014 to £1.0 million from £0.2 million in H1 2013 (excluding non-recurring milestone received in H1 2013)
• Net assets £2.6 million (H1 2013 – £1.7 million; 31 December 2013 – £1.9 million
• Cash and cash equivalents of £1.6 million as of 30 June 2014 (H1 2013 – £2.6 million; 31 December 2013 – £1.9 million)

Pro forma numbers for H1 (including PrimeVigilance (PV) acquired at IPO post-period end in July 2014)

• Pro forma total revenues increased by 20% in H1 2014 to £10.4 million (H1 2013:£8.6 million)
• Pro forma recurring revenues (excluding milestones) up 42% in H1 2014 to £10.4 million from £7.3 million in H1 2013
• Pro forma recurring operating profit increased in H1 2014 to £1.5 million from £0.4 million in H1 2013 (excluding non-recurring milestone received in H1 2013)
• Pro forma Net assets £3.2 million (H1 2013 – £2.0 million; 31 December 2013 – £2.5 million)
• Pro forma Cash and cash equivalents of £1.9 million as of 30 June 2014 (H1 2013 – £2.9 million; 31 December 2013 – £2.2 million)

Operational highlights (including PrimeVigilance acquired post-period end)

• Service contracts with a value of £11.2 million signed for clinical studies and pharmacovigilance in H1 2014 – strong backlog of awarded contracts of over £60 million
• Ferrer’s Lorediplon for insomnia Phase II co-development deal signed in January 2014
• Three Phase III oncology co-development portfolio assets progressing well through ongoing studies. Potential to receive over $100 million in future revenues if successful. Results due in next two to three years
• PrimeVigilance awarded 2014 Queen’s Award for Enterprise in the International Trade Category
• Completion of significant safety base upgrade in PrimeVigilance to version 7 of ARISg and AG Inquirer
• Medical Information business launched in Q1 2014 and first clients signed
• Strengthened Board with appointments of Rolf Stahel as Chairman and Peter George as Non-executive Director

Post-period end highlights

• Raised gross proceeds of £11 million before expenses of £1.3 million following successful initial public offering (IPO) on the AIM Market of the London Stock Exchange in July 2014
• Acquired PrimeVigilance at the time of IPO for £6 million in cash and £3 million in Ergomed plc ordinary shares
• Appointment of Dr Sy-Shi Wang as Executive Director Clinical Operations and Christopher Collins as Non-executive Director

Commenting on the results, Miroslav Reljanovic, Chief Executive Officer of Ergomed plc, said:

“Ergomed has delivered excellent results for the first half of 2014 and is well positioned for the rest of the year and into 2015. We have made very good progress, achieving significant year-on-year growth and are on track to deliver another year of strong performance.

“Our successful IPO in July provides a platform for future growth and the addition of PrimeVigilance strengthens our services offering. Our balanced, profitable, healthcare services business, combined with an exciting co-development portfolio, has the potential to deliver significant value in the next few years.”

For further information, please contact:

Hume Brophy
Mary Clark, Supriya Mathur and Hollie Vile
Tel: + 44 203 440 5654
ergomed@humebrophy.com

Oriel Securities
NOMAD/Broker to the Company
Juliet Thompson, Jonathan Senior
Tel: +44 207 710 7600

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