Biopharma firm Ergomed sees revenues grow by 25 per cent

By Sam Pither

27 July 2022

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Guildford-based biopharma group Ergomed has released a trading update for the first half of 2022, ahead of the publishing of its interim results in September.

Ergomed has announced a total revenue for H1 2022 of £69.9 million, which is a year-on-year increase of 24.8 per cent. Service fee revenues, of £59.8 million, were up 25.6 per cent compared to H1 2021.

The group’s revenue consists of £34.3 million from its Clinical Research Services business and £35.6 million from PrimeVigilance, the pharmacovigilance (PV) business. These work out as increases of 26.2 per cent and 23.4 per cent respectively.

Following February’s £24.2 million net cash purchase of ADAMAS, which has strong underlying cash flow, Ergomed’s cash reserves, as of 30 June, were £12 million.

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The firm has also increased its available credit from £30 million to £80 million, consisting of a £50 million facility and an additional £30 million accordion. This facility is currently undrawn, and the Company is debt-free.

Ergomed has also seen an increase in its order book, from £239.7 million on 31 December to £284.5 million at the end of H1 2022.

Finally, the company has strengthened its senior leadership team. John Dawson, CBE joined the Board as an independent Non-Executive Director and Chair of the Audit Committee, while Anne Whitaker joined as an independent Non-Executive Director.

Dr Miroslav Reljanović, Executive Chairman of Ergomed, said: "Ergomed has delivered further significant strategic progress in H1 2022. Our strong organic growth has continued, with expansion into new territories and further strengthening of the Company's Board and leadership team.

“We also continued to execute our disciplined M&A strategy with the acquisition of ADAMAS. This progress once again demonstrates Ergomed's robustness, resilience and ability to sustain high growth, notwithstanding the challenging macro-economic environment.

“The Board expects to deliver the anticipated trading growth and financial results for the full year in line with current market expectations , and we look forward with confidence to the rest of this year and beyond."

By Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset.

A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise.

Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.