29th Jan 2020 10:58
(Alliance News) - Pharmaceutical services provider Ergomed PLC on Wednesday said its 2019 earnings will be ahead of market expectations.
In the year to December 31 adjusted earnings before interest, tax, depreciation and amortisation are expected to exceed market forecasts. In 2018, Ergomed reported adjusted Ebitda of GBP2.3 million
Revenue in 2019 is expected at GBP68 million, in line with expectations and 26% higher year-on-year from GBP54.1 million in 2018.
Ergomed reported a "positive trading performance" in both its Pharmacovigilance drug safety unit, and the Clinical Research Organisation clinical trial services division.
CRO revenue is forecast to climb 23% to GBP32.6 million with the Pharmacovigilance division set to post revenue of GBP35.4 million, 29% higher year-on-year.
The combined order book from the units at the end of 2019 is expected to rise 15% to GBP125 million from GBP109 million.
Executive Chair Miroslav Reljanovic said: "2019 has been a transformational year for Ergomed. The momentum seen in the first half has continued and the business has performed ahead of market expectations for the full year."
Looking ahead, the company expects more progress in 2020, helped by the USD10 million acquisition of US-based Ashfield Pharmacovigilance Inc from UDG Healthcare PLC.
"Our recent acquisition of Ashfield Pharmacovigilance marks a further major step in our strategy, establishing a broader platform in the US and a substantially enlarged client base," Reljanovic added.
Ergomed shares were 9.8% higher at 472.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
ERGO.L