Ergomed plc Trading Update (8304S)
28 June 2018 - 4:01PM
UK Regulatory
TIDMERGO
RNS Number : 8304S
Ergomed plc
28 June 2018
PRESS RELEASE
Trading update
London, UK - 28 June 2018: Ergomed plc (LSE: ERGO) ("Ergomed" or
the "Company"), a company focused on providing specialised services
to the pharmaceutical industry, announces an update on trading for
2018.
Demand for both clinical research services ("CRS") and drug
safety and medical information ("DS&MI") segments remains
generally buoyant. However, due to delays in the start-up of some
contracts and reductions in scope by sponsors of others, revenue
for the first half of 2018 is expected to be below management's
expectations and revenue for the full year is now likely to be
around 5% less than market consensus for 2018.
The Company continues to invest in line with its stated strategy
to position itself as a market leader in pharmacovigilance and
orphan drug development segments by 2020. These investments include
the addition of project personnel across geographies, the
investment in robotic process automation technology to deliver
longer-term operational efficiencies and the upgrading of our
support capabilities in terms of systems and personnel. The Company
expects to continue investing, albeit at a reduced rate, in the
second half of 2018.
From a profitability perspective, 2018 will be impacted by
delayed revenues and the level of investment being made. The
Company believes it is prudent, therefore, to guide investors to
expect adjusted EBITDA for 2018 to be only modestly ahead of 2017's
adjusted EBITDA of GBP2.8 million.
The Company's backlog, including two contracts on the point of
signature, is just over GBP100 million, compared with GBP88 million
on 1 January 2018. The Company's cash position remains strong with
positive cash flows in the period.
Stephen Stamp, Chief Executive Officer of Ergomed plc said:
"This year, we anticipated exceeding market expectations for
revenue, allowing us to more than cover the cost of the additional
investment required to deliver our strategic goals for 2020. It is
unfortunate that delays and reductions in scope of a limited number
of contracts has resulted in us investing ahead of the curve. The
business overall is in robust health, as demonstrated by a backlog
approaching GBP100 million, and we are confident 2018 will provide
a solid foundation for future growth."
- Ends -
Enquiries:
Ergomed plc Tel: +44 (0) 1483 503
205
Stephen Stamp (Chief Executive Officer)
Numis Securities Limited Tel: +44 (0) 20 7260
1000
Michael Meade / Freddie Barnfield (Nominated
Adviser)
James Black (Joint Broker)
N+1 Singer Tel: +44 (0) 20 7496
3000
Aubrey Powell (Joint Broker)
Consilium Strategic Communications Tel: +44 (0) 20 3709
- for UK enquiries 5700
Chris Gardner / Mary-Jane Elliott ergomed@consilium-comms.com
Ivar Milligan / Olivia Manser
MC Services - for Continental European Tel: +49 211 5292 5222
enquiries
Anne Hennecke
About Ergomed plc
Ergomed provides specialist services to the pharmaceutical
industry spanning all phases of clinical development, post-approval
pharmacovigilance and medical information. Ergomed's fast-growing,
profitable services offering encompasses a complete suite of
specialist pharmacovigilance solutions, integrated under the
PrimeVigilance brand, in addition to a full range of high quality
contract research and trial management services (CRO). Leveraging
its CRO expertise, Ergomed also has a drug development portfolio of
co-development partnerships and wholly-owned programmes. For
further information, visit: http://ergomedplc.com.
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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