Ergomed shares rise as annual profit set to beat market expectations

(Alliance News) - Shares rose in Ergomed PLC on Tuesday after the clinical services provider ...

Alliance News 25 January, 2022 | 10:46AM
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(Alliance News) - Shares rose in Ergomed PLC on Tuesday after the clinical services provider guided for annual earnings to be ahead of market expectations, on top of double digit revenue growth.

Shares in the Guildford, England-based company were 10% higher at 1,168.93 pence on Tuesday morning in London.

For 2021, Ergomed said it expects adjusted earnings before interest, tax, depreciation and amortisation to exceed market expectations, driven by an excellent trading performance from the Pharmacovigilance and Clinical Research Organisation business throughout the year.

For 2020, Ergomed's adjusted Ebitda stood at GBP19.4 million.

As a result, total revenue for the year is set to rise 37% year-on-year to GBP118.6 million from GBP86.4 million, while the order book as at December 31 stands at GBP240 million, up 24% from GBP193 million.

Looking ahead, Ergomed holds a positive outlook for 2022, buoyed by its growing market presence in the US, through an ongoing investment in employment and building on past acquisitions.

"Ergomed has delivered another outstanding year operationally and financially, with results ahead of market expectations. Our further significant organic growth demonstrates the strength of our positioning in our key markets and was augmented by the contribution of our latest successfully integrated acquisitions, particularly in the US. We start 2022 with an exceptionally strong platform - a robust order book, a track record of delivery and an offering that demonstrably meets the needs of a growing market," said Executive Chair Miroslav Reljanovic.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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