Ergomed PLC (LON:ERGO) said it expects its underlying earnings to exceed market forecasts and added that momentum seen in 2019 had continued into the current year.
The company noted that its order book currently stands at £125mln as at December 31, up 15% year-on-year, which bodes well for 2020.
Ergomed has two arms to its business – contract research outsourcing (CRO) division, which carries out R&D work for drug developers, and pharmacovigilance (PV) operation that monitors pharmaceutical products already on sale.
Revenues for the 12 months ended last month were £68mln, up 26% on the year earlier, with CRO ahead 23% and PV up 29%.
The firm said its “focus on profitability” meant adjusted EBITDA would be ahead of current market expectations.
Cash at the period end was £14mln, up from £5.2mln a year earlier.
Looking ahead, Ergomed said expects recently-acquired Ashfield Pharmacovigilance, which cost £7.8mln (US$10mln), is expected to contribute to growth.
“With a robust financial position, strong order book and strengthened leadership team, we are firmly positioned to deliver on the promise of becoming a leading mid-tier pharmaceutical services specialist with a global presence,” said chief executive Dr Miroslav Reljanović.