Ergomed (ERGO): Poised for a strong FY22

Edison Investment Research Limited Ergomed (ERGO): Poised for a strong FY22 04-Oct-2022 / 12:51 GMT/BST London, UK, 4 October 2022 Ergomed (ERGO): Poised for a strong FY22 Ergomed released full H122 accounts following its July 2022 trading update, the key takeaway of which was the sustained strong momentum across both business segments despite the underlying biotech market softness. The 24.8% y-o-y revenue growth was supported by geographical expansion, forex tailwinds and a £4m contribution from the ADAMAS acquisition. This in turn translated into robust margins (albeit slightly lower than H121), which should benefit further from the consolidation of the higher-margin ADAMAS business. The order book continued to be strong (24.9% y-o-y growth) indicating a solid sales pipeline for the coming quarters. With a £12m cash balance and £80m in undrawn debt facilities, the company remains well capitalised to fund future growth. Our valuation goes up slightly to £783m or 1,568p/share on a higher share count (versus £777m and 1,577p/share previously). We keep our estimates broadly unchanged following the H122 results although our valuation goes up marginally to £783m (from £777m) from rolling forward our model (offset by a lower cash balance). Per share valuation goes down slightly to 1,564p/share (from 1,577p/share) due to higher shares outstanding. Our valuation implies an FY22e EV/EBITDA multiple of 27.3x. Ergomed trades at a premium on FY22e EV/EBITDA (consensus) of 19.6x versus the peer average of 13.4x. Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Soo Romanoff [phone] [e-mail] Jyoti Prakash, CFA [phone] [e-mail] Nidhi Singh [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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1456543 04-Oct-2022