Trading Update & Notice of Results

RNS Number : 6152G

Ergomed plc

05 March 2018

 

PRESS RELEASE

Trading Update

and

Notice of Preliminary Results

London, UK - 5 March 2018: Ergomed plc (LSE: ERGO) ('Ergomed' or the 'Company'), a specialised pharmaceutical services and drug development company, announces an update on trading further to the announcement made on 25 January 2018. 

The Company will announce its Preliminary Results for the full year ending 31 December 2017 on 28 March 2018. At the same time, the Company will also provide an update on its strategic priorities which are to be focused on expanding its profitable service offering and particularly the opportunities for PrimeVigilance and specialised CRO services including orphan drug development.

As previously announced, Ergomed's service business saw revenue growth of 35% in 2017 driven by approximately 68% growth in Drug Safety & Medical Information services (DS&MI) which includes PrimeVigilance. The Company announced that net service revenues were expected to be approximately £39 million (2016: £29.2 million) and that total revenues were expected to be approximately £47 million, up 21% (2016: £39.2 million). Neither of these expectations has changed. Ergomed ended 2017 with an order backlog of £88 million of contracted future work (31 December 2016: £70 million).

Adjusted EBITDA before R&D for 2017 is expected to be approximately £0.6 million lower than current market consensus of £6.0 million primarily due to foreign exchange losses arising from the translation of foreign currency denominated balance sheet assets and liabilities. In addition, R&D expense is expected to be £0.3 million higher than current market consensus, primarily due to faster than anticipated completion of the PeproStat Phase II trial. Combined, these factors result in expected post-R&D adjusted EBITDA of approximately £0.9 million lower than current market consensus. The Board of Ergomed has only just become aware of these adjustments as the Company has finalised its 2017 accounts in preparation for the year-end audit, which itself was delayed as the Company implemented a new finance system earlier this year. The Company's results for 2017 are still subject to audit.

Expectations for 2018 revenue and adjusted EBITDA remain unchanged.              

Stephen Stamp, Chief Executive Officer of Ergomed plc, said: "2017 has been a year of exceptional growth and clinical success and it is unfortunate that these late adjustments have just come to light. We believe that our re-focused strategy to take leadership positions in pharmacovigilance and orphan drug development services will take us to the next level. Recent investment in systems will support that growth, most of which remains in front of us."

- ENDS -

Enquiries:

Ergomed plc		Tel: [phone]
Stephen Stamp (Chief Executive Officer)
Numis Securities Limited		Tel: [phone]
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black (Joint Broker)
N+1 Singer		Tel: [phone]
Alex Price (Joint Broker)
Consilium Strategic Communications - for UK enquiries		Tel: [phone]
Chris Gardner / Mary-Jane Elliott Ivar Milligan / Philippa Gardner	[e-mail]
MC Services - for Continental European enquiries		Tel: [phone]
Anne Hennecke

About Ergomed

Ergomed provides specialist services to the pharmaceutical industry and develops drugs both wholly-owned and through partnerships. Ergomed's fast-growing, profitable service offering spans all phases of clinical development and post-approval pharmacovigilance and medical information. Drawing on more than 20 years of expertise in drug development, Ergomed is also building a growing portfolio of drug development partnerships and programmes, including wholly-owned proprietary products for the treatment of surgical bleeding. For further information, visit: http://ergomedplc.com.

 

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