Ergomed PLC (AIM:ERGO, ETR:2EM) shares rose 9% after the company said its earnings would exceed City expectations.
Peel Hunt, the company’s joint broker, said it has been impressed by the 2021 numbers, “especially given the foreign exchange headwinds for the majority of the year”.
Total revenue for the 12 months advanced by 37.2% to £118.6mln, with acquisitions augmenting organic expansion. Turnover in the States was up 59.5%.
Across all metrics, Ergomed’s performance was strong: the order book was £240mln, up 24.4%, while the firm’s cash position increased by £20mln to £32.2mln.
Looking ahead, the company said it was well-positioned in the “resilient and fast-growing” rare disease, oncology and pharmacovigilance sectors
At 12.45 pm, the stock was up £1 at £11.60, reversing some of the 30% slide seen in the last month.
“Recent weakness in the share price is unrelated to the business performance in our view, and we believe Ergomed – with profitable growth – is a world away from the speculative future earnings stories being punished in the current style rotation.
“Investors should take a great deal of comfort from the business performance in [the fourth quarter of last year], and the market should respond well to the optimism in the outlook statement today.”