- Net service revenue growth of 36% driving total revenue growth of 21%
- Within services, Drug Safety & Medical Information (pharmacovigilance) revenue grew 67%
- New business won in 2017 increased 29% to £54 million with a contracted backlog at 1 January 2018 of £88 million
- Positive PeproStat Phase II results
- Corporate strategy refined to focus on services businesses
London, UK – 11 April 2018: Ergomed plc, (LSE: ERGO) (‘Ergomed’ or the ‘Company’), a company focused on providing specialised services to the pharmaceutical industry, today announces its unaudited Preliminary Results for the year ended 31 December 2017.
Commenting on the results, Stephen Stamp, Chief Executive Officer of Ergomed plc, said: “It has been another very strong year for our pharmacovigilance business which continues to outperform a fast-growing market. Our offering is now integrated under the PrimeVigilance brand and our aim is to become a leading global provider of pharmacovigilance services by 2020. Our acquisition of PSR added to our strength as a CRO in orphan diseases and we see the opportunity for Ergomed to take a leadership position in a growing sector where our unique offering positions us well for growth.
“We have an excellent platform on which to build our PrimeVigilance and specialist CRO services, both organically and through strategic acquisitions, to add geographic coverage and complementary skills and services. We have started the year in a position of strength, with a strong order book backlog and, going forwards, our focus is to maximise the potential of our profitable services businesses and execute on our refined strategy towards global leadership in these attractive markets.”
Financial highlights: strong performance in service businesses
- Net service revenue1 up 36% to £39.6 million (2016: £29.2 million)
- Net service revenue excluding acquisitions increased by18%
- Total revenue, including reimbursement revenue, up 21% to £47.6 million (2016: £39.2 million)
- EBITDA (adjusted) 2 was £2.8 million (2016 restated: £2.8 million) and EBITDA loss was £2.3 million (2016 restated: £1.1 million profit), (see note 12)
- EPS (adjusted)3 was 4.2p (2016 restated: 6.8p) and EPS was a loss of 11.0p (2016 restated: 0.2p) (see notes 13 and 5 respectively)
- Cash and cash equivalents of £3.2 million as at 31 December 2017 (2016: £4.4 million)
- New contracts won in 2017 up 29% with a contract value of £54 million (2016: £42 million)
- Strong backlog of £88 million contracted revenue as of 1 January 2018 (1 January 2017: £70 million)
- To align with industry practice, Ergomed is disclosing reimbursement revenue and reimbursable expenses as part of total revenues and separately from cost of sales, respectively. Net service revenues exclude reimbursement revenues.
- Adjustments are made to EBITDA for share-based payment charge, deferred consideration for acquisition relating to post acquisition remuneration, revaluation of deferred consideration for acquisition, acquisition costs and exceptional items.
- Adjustments are made to EPS for amortisation of acquired fair valued intangible assets, share-based payment charge, deferred consideration for acquisition relating to post acquisition remuneration, acquisition costs and exceptional items.
- Acquisition of PSR Group BV (PSR), a leading contract research organisation based in The Netherlands and focused on orphan drug development, for a total consideration of up to €5.7 million (£5.1 million) (October 2017) (note 6)
- Institutional placing raising gross proceeds of £2.9 million to partially fund the initial consideration for PSR (September 2017)
- PrimeVigilance demonstrated its successful pilot project in robotic automation at an intelligent automation seminar for the International Society of Pharmacovigilance (ISOP) (December 2017)
- Board and management appointments including: Peter George, former CEO of Clinigen Group plc and non-executive director of Ergomed to Chairman; Dr Miroslav Reljanovic, founder and former CEO to Executive Vice-Chairman; Stephen Stamp to CEO as well as CFO; and Jan Petracek, CEO of PrimeVigilance Ltd, to COO
- An agreement with Allergy Therapeutics plc for a multi-study co-development partnership to support three of Allergy Therapeutics’ OralVac products (December 2017)
- First commercialisation deal for Haemostatix products with Boryung for South Korea (September 2017)
- Positive Phase II data from PeproStat, our wholly-owned product and the first to come from the Haemostatix pipeline (October 2017)
- Institutional placing raising gross proceeds of £3.9 million for potential acquisitions and working capital (February 2018)
Conference call for analysts:
A briefing for analysts will be held at 9.30am BST on 11 April at the offices of Numis Securities Ltd., 10 Paternoster Square, London, EC4M 7LT. There will be a simultaneous live conference call with Q&A.
Conference call details:
Participant dial-in: 08006945707
International dial-in: +44 (0) 1452 541003
Participant code: 2388447
|Ergomed plc||Tel: +44 (0) 1483 503205|
|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|
|Alex Price / Michael Taylor (Joint Broker)|
|Consilium Strategic Communications – for UK enquiries||Tel: +44 (0) 20 3709 5700|
|Chris Gardner / Mary-Jane Elliott
Ivar Milligan / Philippa Gardner
|MC Services – for Continental European enquiries||Tel: +49 211 5292 5222|
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 has established a 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.
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