Ergomed posts strong growth after Adamas acquisition

Pharmaceutical service provider Ergomed reported total first-half revenue growth of 24.8% year-on-year in a trading update on Tuesday, to £69.9m.

The AIM-traded firm said its total order book stood at £284.5m, with growth of 18.7% since 1 January, providing it with “high visibility” into the second half and beyond.

It said total revenue and adjusted EBITDA for the full year were expected to be in line with current market expectations.

The board said the integration of Adamas, acquired in February, was “progressing well”.

It reported a “strong” operational cash flow, with cash balances of £12m at the period end, after the £24.2m net cash purchase of Adamas.

The company was also debt-free, with available debt facilities recently increased to £80m from £30m.

“Ergomed has delivered further significant strategic progress in the first half,” said executive chairman Miroslav Reljanović.

“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 merger and acquisition strategy with the acquisition of Adamas.”

Dr Reljanović said the progress demonstrated Ergomed's “robustness, resilience and ability to sustain high growth”, notwithstanding the current, challenging macroeconomic 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.”

At 1601 BST, shares in Ergomed were up 5.94% at 1,070p.

Reporting by Josh White at Sharecast.com.