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The clinical services group Ergomed (LON:ERGO) said it had signed £15mln of new contracts in the first half as it unveiled a strong financial performance in that period.
Revenues in the six month to June 30 rose 85% to £7.8mln, giving underlying earnings (EBITDA) of £1.5mln, representing a rise of 66%.
The company, valued at just shy of £50mln, was sitting on net assets of £15.9mln as at the period end and cash of £4.9mln.
Currently Ergomed has what it describes as a “strong backlog” of contracts worth around £60mln.
The company, which also co-develops drugs, said it had three phase III treatments that could generate £66mln (US$100mln) of revenues if successful.
Two of these phase III studies are scheduled to report pivotal results next year, with an interim analysis of the other expected in the final quarter of this. Ergomed also has a phase II trial reporting next year.
"Overall, we continue to believe that our hybrid model of a profitable, healthcare services business, combined with managed investment in an exciting co-development portfolio, has the potential to deliver significant value while balancing the risks over the next few years," said chief executive Miroslav Reljanovic.
The shares, listed at 160p each last July, were up 3% in mid-afternoon trade, valuing the business at £52mln.
“[The] interim results highlight continued progression and robust growth in its services business,” said N+1 Singer, repeating its ‘buy’ recommendation.
Chief financial officer Neil Clark, meanwhile, said the figures sent out a “strong message post IPO of growth and being on target”.
He also hinted Ergomed may close landing a further co-development deal to add to the portfolio.
“We have other leads and we are very active in that process,” Clark told Proactive Investors.
“We will look to do something in the near future. If we can do something this year we shall, but we won’t rush. It is a matter of doing the right deal.