25th Mar 2015 10:39
LONDON (Alliance News) - Ergomed PLC Wednesday posted a decline in pretax profit for 2014, as a rise in revenue was offset by costs partly related to its listing on AIM last July, but it expressed confidence for 2015 and beyond as it reported strong growth in profit and revenue excluding the IPO costs and a one-off milestone payment.
The pharmaceutical services provider posted a pretax profit of GBP777,000, down from GBP1.8 million in 2013, as a rise in revenue to GBP21.2 million from GBP15.1 million was offset by costs related to its listing on AIM, costs related to its acquisition of PrimeVigilance, and after the prior year operating profit was buoyed by a GBP1.3 million non-recurring milestone payment from a co-development partner.
Ergomed also reported pro forma figures that assumed it had owned PrimeVigilance for the whole of 2013 and 2014, and excluded the IPO costs and the non-recurring milestone payment. It said pro forma operating profit almost doubled to GBP2.7 million from GBP1.4 million in 2013, as revenue rose by almost a quarter to GBP23.7 million from GBP19.2 million.
Revenue growth was driven by contract wins with late stage biotech and pharmaceutical companies for phase II and phase II studies, as well as other services. Most of these contracts are in process, and are scheduled to be completed over the next few years, Ergomed said.
The company also cited good progress in its four late stage co-development partnerships, and three clinical studies from these partnerships are expected in 2016. Following the year end, it signed a fifth co-development deal with Dilaforette AB for sevuraprin for patients with sickle-cell disease experiencing acute vaso-occlusive crisis.
"Ergomed is well placed to continue to grow and develop its strategy as outlined at its IPO in July 2014 and I look forward to 2015 and beyond with confidence," said Chief Executive Officer Miroslav Reljanovic in a statement.
Shares in Ergomed are untraded Wednesday. It last closed at 165.20 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
ERGO.L