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Ergomed sees earnings ahead of expectations as chairman highlights strong start to 2021

Published: 07:42 10 Jun 2021 BST

Ergomed PLC - Ergomed sees earnings ahead of expectations as it highlights strong start to 2021

Ergomed PLC (LON:ERGO) executive chairman Dr Miroslav Reljanović highlighted a strong start to 2021 in a statement ahead of today’s AGM.

It leads to a positive outlook with earnings (adjusted EBITDA) presently seen materially ahead of market expectations, the chairman noted.

The behind closed doors meeting takes place this morning at 9:30am.

“In the year to date, the conclusion of our strategic transition to a services-based business model, coupled with our ongoing resilience globally through the COVID-19 pandemic, has enabled the company to build further on the momentum seen in 2020,” Reljanović said in a statement.

"The company has continued to make significant strategic progress in the current year.

“With the integration of the Ashfield Pharmacovigilance business successfully concluded, PrimeVigilance, the company's pharmacovigilance division, has seen continued strong growth in revenues in line with prior trends. In the CRO business, integration of MedSource, which was acquired in December 2020, is progressing well and our CRO business as a whole is seeing further acceleration in the growth that resumed in the second half of 2020.”

Reljanović also noted that the integration of the new businesses is fuelling rapid development of the company's operational presence in the United States, and, more broadly its international growth is continuing into other geographic areas, including a recently announced entry into Japan.

"With continuing strong sales and order book growth, solid trading in the first months of the year, effective cost management and acquisition synergies, the board currently expects adjusted EBITDA for the full year to be materially ahead of market expectations.

“Reported revenues for the full year are expected to be in line with market expectations, notwithstanding a higher proportion of US dollar denominated revenues leading to some FX headwinds.”

A more detailed trading update is slated for July.

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