Ergomed reports decent first quarter

Specialist pharmaceutical services company Ergomed said on Wednesday that it had a “good” first quarter, with “solid” overall growth in revenue.

The AIM-traded firm, which was holding its annual general meeting, told shareholders that following the outbreak of Covid-19 in March, it had been successful in transitioning to a “fully remote working” operation, with “minimal disruption”, and no redundancies or furloughed staff.

Its chairman, Dr Miroslav Reljanović, said the company had made good strategic progress so far in the year, with further integration of the combined business under the pharmaceutical services model.

“The Ashfield Pharmacovigilance business, acquired in January, has been integrated in line with plans as PrimeVigilance USA, providing significant commercial benefit to the group overall.

“Cash generation remains strong, and the company is in a robust financial position.”

Dr Reljanović explained that, despite the impact of Covid-19 on the general business environment, in the second quarter the firm had continued to grow its order book across the business, and maintain its revenue growth trend, while implementing cost control measures.

He said the board was confident in the performance of the business for the first half of 2020.

“In line with our usual practice, in July the company will provide an update on current trading and the outlook for the remainder of the current financial year ending 31 December.

“At this time, the company is confident that results will be in line with current market expectations for the 2020 financial year.”

At 1424 BST, shares in Ergomed were up 1.72% at 442.5p.