Ergomed plc Trading Update & Notice of Results (6152G)
March 05 2018 - 1:00AM
UK Regulatory
TIDMERGO
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 GBP39 million (2016:
GBP29.2 million) and that total revenues were expected to be
approximately GBP47 million, up 21% (2016: GBP39.2 million).
Neither of these expectations has changed. Ergomed ended 2017 with
an order backlog of GBP88 million of contracted future work (31
December 2016: GBP70 million).
Adjusted EBITDA before R&D for 2017 is expected to be
approximately GBP0.6 million lower than current market consensus of
GBP6.0 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 GBP0.3 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 GBP0.9 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: +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 (Joint Broker)
Consilium Strategic Communications Tel: +44 (0)
- for UK enquiries 20 3709 5700
Chris Gardner / Mary-Jane ergomed@consilium-comms.com
Elliott
Ivar Milligan / Philippa Gardner
MC Services - for Continental Tel: +49 211
European enquiries 5292 5222
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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