Strong financial performance coupled with an extensive backlog London, UK – 12 April 2016: Ergomed plc, (‘Ergomed’, AIM: ERGO) a profitable UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its Preliminary Results for the year ended 31 December 2015. Commenting on the […]
Strong financial performance coupled with an extensive backlog
London, UK – 12 April 2016: Ergomed plc, (‘Ergomed’, AIM: ERGO) a profitable UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its Preliminary Results for the year ended 31 December 2015.
Commenting on the results, Miroslav Reljanovic MD, Chief Executive Officer of Ergomed plc, said:
“In our first full year as a public company we have delivered a very strong financial performance with top-line and adjusted EBITDA growth of 43% and 39% respectively. Our backlog is extremely healthy, with over 85% of 2016 budgeted revenue contracted by the beginning of the year. We continue to look for acquisitions that complement our existing service offerings, adding one during the year. Our co-development business continues to gain traction with another programme added in 2015 and important data expected from two of our five co-development partners during 2016.”
Financial Highlights: Performance in-line with market expectations
- Revenues up 43% to £30.2million (2014: £21.2m)
- Pro forma adjusted for PrimeVigilance1, revenues up 27% (2014: £23.7m)
- Gross profit up 45% to £8.4 million (2014: £5.8m)
- EBITDA (adjusted) up 39% to £3.4 million (2014: £2.4m) (note 8)
- Pro forma adjusted for PrimeVigilance1, EBITDA (adjusted) up 22% (2014: £2.8m)
- Cash and cash equivalents of £4.0 million as at 31 December 2015 (2014: £4.6m) with zero debt
- New contracts worth an initial value of £28 million won in 2015
- Strong backlog of £59 million with more than 85% of planned 2016 revenue already contracted as of 1 January 2016
Operational Highlights: Expanding geographical footprint and service offerings
- Signed first orphan disease co-development agreement with Dilaforette for Phase II clinical development of sevuparin in patients with Sickle-Cell Disease (SCD) experiencing an acute vaso-occlusive crisis (VOC)
- Expanded presence in Asia with the opening of an office in Taipei (Taiwan) as a regional hub
- Acquired Sound Opinion, one of the UK’s leading medical information service providers, which was immediately integrated into PrimeVigilance, Ergomed’ s fast growing post-marketing business
- Strengthened management team with appointment of Andrew Mackie as Chief Business Officer and to the Board
1 PrimeVigilance acquisition completed on 15 July, 2014; Pro forma figures assume contribution for full year 2014 to enable comparison with 2015
- Management team further enhanced with the appointment of Stephen Stamp to the Board as Chief Financial Officer; Neil Clark promoted to Chief Executive Officer of PrimeVigilance
In addition, the Company announces the appointment of Numis Securities Ltd as joint broker to the Company with immediate effect.
Stifel Nicolaus Europe Limited Tel: +44 (0) 20 7710 7600
(Nominated Adviser and Joint Broker)
Jonathan Senior / Stewart Wallace
FTI Consulting Tel: +44 (0) 20 3727 1000
Simon Conway / Mo Noonan / Natalie Garland-Collins
Numis Tel: +44 (0) 20 7260 1000
Michael Meade / James Black
Ergomed plc is a profitable UK-based business providing drug development services to the pharmaceutical industry and has a growing portfolio of co-development partnerships. It operates in over 50 countries.
Ergomed provides clinical development, trial management and pharmacovigilance services to over 80 clients ranging from top 10 pharmaceutical companies to small and mid-sized drug development companies. Ergomed successfully manages clinical development from Phase I through to late phase programmes.
Ergomed has a wide therapeutic focus, with a particular expertise in oncology, neurology and immunology and the development of orphan drugs. Ergomed believes its approach to clinical trials is differentiated from that of other providers by its innovative Study Site Management model and the use of Study Physician Teams, resulting in a close relationship between Ergomed and the physicians involved in clinical trials.
As well as providing high quality clinical development services, Ergomed is building a portfolio of co-development partnerships with pharma and biotech companies which share the risks and rewards of drug development. Ergomed leverages its expertise and services in return for carried interest in the drugs under development. For further information, visit: https://ergomedplc.com
Forward Looking Statements
Certain statements contained within the announcement are forward looking statements and are based on current expectations, estimates and projections about the potential returns of Ergomed plc (“Ergomed”) and industry and markets in which Ergomed operates, the Directors’ beliefs and assumptions made by the Directors. Words such as “expects”, “anticipates”, “should”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”, “pipeline” and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment.
These forward-looking statements speak only as of the date of this announcement. Ergomed expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Ergomed’s expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.