Ergomed earnings rise as it strengthens US presence

Ergomed reported a 37.3% rise in revenue in its preliminary results for 2021 on Tuesday, to £118.6m, as its strengthened its strategic presence in the United States.

The AIM-traded firm said its adjusted EBITDA was ahead 31.2% at £25.4m, while its forward visibility was “underpinned” by a strong order book of £239.7m, up 24.2% year-on-year for the 12 months ended 31 December.

Its board described a “further strengthening” of its strategic presence in the US, with revenues in that market up 59.5%.

Net cash balances at year-totalled £31.2m, up 64.5% from the end of 2020.

“We have delivered another outstanding year operationally and financially, with results ahead of market expectations,” said executive chairman Miroslav Reljanović.

“The strength of our position in key markets was demonstrated by further significant organic growth and augmented by our latest successfully integrated acquisitions, particularly in the US.”

Dr Reljanović said the company’s “robust” order book, track record of delivery, and “clear demand” for its offering in a growing market created a “strong platform” for organic growth and for geographic and service expansion through mergers and acquisitions.

“We remain extremely confident in Ergomed's future as a leading global provider of specialised pharmaceutical services.”

At 1240 BST, shares in Ergomed were up 4.47% at 1,285p.