|
Edison Investment Research Limited
London, UK, 1 August 2022
Ergomed (ERGO): Sustained growth momentum in H122 Ergomed’s H122 trading update re-emphasised its robust business model and resilient growth despite the challenging macro environment. Revenues grew 24.8% y-o-y to £69.9m, underpinned by strong and sustained demand for both the clinical research services (and pharmacovigilance segments. In February 2022, Ergomed acquired ADAMAS, which added supplementary quality assurance services to its portfolio, and we expect this to further enhance group margins in the forthcoming quarters. Importantly, the order book continues to be strong, recording 18.7% growth since end-December 2021, indicating robust contractual revenues into H222. With a £12m cash balance and £80m in debt facilities, the balance sheet remains robust. Management expects FY22 revenue and adjusted EBITDA to be ‘in line with market expectations’. We maintain our estimates and valuation for the company.
Management expects full year revenue and EBITDA to be in line with current market expectations. Our forecasts and consensus estimates for FY22 revenue and adjusted EBITDA are £140.3m/£28.1m and £141m/£28.1m, respectively. Ergomed remains well capitalised to fund further expansion plans with a period-end cash balance of £12m (following its £24.2m net cash purchase of ADAMAS) and an undrawn revolving credit facility worth £80m (increased from £30m in H221). Our estimates and valuation are unchanged.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the . Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Soo Romanoff +44 (0)20 3077 5700 Jyoti Prakash +44 (0)20 3077 5700 Learn more at and connect with Edison on: YouTube
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1409749 01-Aug-2022
