Peel Hunt repeated its ‘buy’ recommendation and 1,490p price target on Ergomed PLC (AIM:ERGO, ETR:2EM), the contract research, which reported full-year results in line with market forecasts.
“We appreciate that the current markets make investing in high-growth healthcare challenging, but Ergomed is one to look at, continuing to deliver whilst spinning-off cash at a rate of around £1.5mln per month,” the broker said in a note to clients.
Earlier the company, which is focused on providing specialised services to the pharmaceutical industry, posted full-year revenue growth of 23% to £145.3mln, up 15% in constant currency and in line with market expectations. North American revenues were up 22% to £90.6mln, accounting for 62% of group revenues.
The company saw its adjusted EBITDA increase by 12% to £28.4mln, in line with market expectations, as the business continued to invest in building a robust platform for sustainable future growth.
The shares fell 1% to 1,010p.