Ergomed plc Trading Update & Notice of Results (6152G)

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              [e-mail] 
  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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March 05, 2018 02:00 ET (07:00 GMT)