Revenue £35.2m (up 36.8%) Adjusted EBITDA £6.5m vs £0.0m in H1 2018 Backlog £118.3m (up 26.9%) Guildford, UK – 25 September 2019: Ergomed plc, (LSE: ERGO) (‘Ergomed’ or the ‘Company’), a company focused on providing specialised services to the global pharmaceutical industry, announces its unaudited interim results for the six months ended 30 […]
- Revenue £35.2m (up 36.8%)
- Adjusted EBITDA £6.5m vs £0.0m in H1 2018
- Backlog £118.3m (up 26.9%)
Guildford, UK – 25 September 2019: Ergomed plc, (LSE: ERGO) (‘Ergomed’ or the ‘Company’), a company focused on providing specialised services to the global pharmaceutical industry, announces its unaudited interim results for the six months ended 30 June 2019.
Financial Summary
| Unaudited | First Half 2019 | First Half 2018 | % change | ||
| Figures in £ millions, unless otherwise stated | |||||
| (Note 1) | |||||
| Total Revenue | 35.2 | 25.7 | +36.8 | ||
| Gross Profit | 14.5 | 9.0 | +61.4 | ||
| Gross Margin (%) | 41.2% | 34.9% | – | ||
| EBITDA (adjusted) (Note 2) | 6.5 | (0.0) | – | ||
| Cash at 30 June | 8.1 | 7.4 | +9.7 | ||
| Backlog at 30 June | 118.3 | 93.2 | +26.9 | ||
| Basic earnings per share (pence) | 7.8p | (5.7)p | – |
Notes:
(1) First half 2018 originally reported under IAS 18 has been restated following the adoption of IFRS15 for the 2018 full year results.
(2) EBITDA (adjusted) is defined as profit before tax for the period plus finance costs, depreciation and amortization, share-based payment charge, acquisition related contingent consideration, change in fair value of contingent consideration, acquisition costs and exceptional items (Note 10 to the financial statements).
Dr Miroslav Reljanović, Executive Chairman of Ergomed, said:
“During the first half of 2019 Ergomed has taken further significant steps to fully focus on its services business model, execute its strategy to become a leading specialised CRO services business, and fulfil its future growth potential.
“We have strengthened the executive team and Board and further developed our differentiated offering in the clinical services marketplace both through the integration of previous acquisitions and through commercial integration. With an improved financial performance over the first half of 2019 and a strong backlog and H1 sales, Ergomed is now positioned for success through continued growth.”
Key Financial Highlights
- Revenue of £35.2 million, up 36.8% on a comparable IFRS 15 basis (H1 2018: £25.7 million)
- EBITDA (adjusted) of £6.5 million (H1 2018: break-even £0.0 million)
- Basic EPS profit of 7.8 p (H1 2018: (5.7)p loss)
- Cash and cash equivalents of £8.1 million at 30 June 2019 (30 June 2018: £7.4 million)
- Backlog of future contracted revenue £118.3 million, up 26.9% (30 June 2018: £93.2 million)
Operational Highlights (including post-period end)
Strengthening of the executive team and Board changes:
- Richard Barfield, former CFO of Chiltern International, to the Board as Chief Financial Officer
- Roy Ovel, formerly at ICON, Worldwide Clinical Trials and TFS, as Chief Commercial Officer
- Dr Jim Esinhart, former CEO of Chiltern International, Rolf Soderstrom, former CFO of BTG plc and Ian Johnson, former Chairman of Bioquell plc, as Non-Executive Directors
- Dr Jan Petracek has stepped down as Ergomed’s Chief Operating Officer and Board Director, as well as CEO of PrimeVigilance; Jonathan West, previously Chief Business Officer of PrimeVigilance, takes on role of President of PrimeVigilance
- Peter George to step down as Non-Executive Director (see separate announcement)
Meeting and conference call for analysts:
A briefing for analysts will be held at 11am BST on 25 September 2019 at the offices of Numis Securities Limited, 10 Paternoster Square, London, EC4M 7LT. Photo ID will be required for entry. There will be a simultaneous live conference call with Q&A.
Conference call details:
- Participant dial-in: 0800 376 7922
- International dial-in: +44 (0) 2071 928 000
- Participant code: 1035098
Enquiries:
| Ergomed plc | Tel: +44 (0) 1483 402 975 |
| Miroslav Reljanović (Executive Chairman) | |
| Richard Barfield (Chief Financial Officer) | |
| Numis Securities Limited | Tel: +44 (0) 20 7260 1000 |
| Freddie Barnfield / Huw Jeremy (Nominated Adviser) | |
| James Black (Broker) | |
| Consilium Strategic Communications – for UK enquiries | Tel: +44 (0) 20 3709 5700 |
| Chris Gardner / Sue Stuart | ergomed@consilium-comms.com |
| Matthew Neal / Olivia Manser | |
| MC Services – for Continental European enquiries | Tel: +49 211 5292 5222 |
| Anne Hennecke |
Please find the rest of the interim results on Investors – Reports and Presentations page.
About Ergomed plc
Ergomed provides specialist services to the pharmaceutical industry spanning all phases of clinical trials, post-approval pharmacovigilance and medical information. Ergomed’s fast-growing, profitable services business includes a full range of high-quality contract research and clinical trial management (CRO) services under the Ergomed brand together with an industry-leading suite of specialist pharmacovigilance (PV) solutions, integrated under the PrimeVigilance brand, and an internationally recognized specialist expertise in orphan drug development, under the PSR brand. For further information, visit: https://ergomedplc.com.
