Ergomed (AIM: ERGO)

Last close As at 24/06/2024

1,042.00

−16.00 (−1.51%)

Market capitalisation

529m

Latest Insights

View More

Healthcare | Update

Ergomed — Solid FY22 marked by broad-based growth

Healthcare | Update

Ergomed — Exiting FY22 on a strong footing

Healthcare | Flash note

Ergomed — Two key management changes

Healthcare | Update

Ergomed — Poised for a strong FY22

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 14.5 4.2 12.9
Relative 14.1 7.6 9.3
52 week high/low 1380.0p/910.0p

Financials

Ergomed reported FY22 results broadly in line with our expectations. Group revenues grew 22.5% y-o-y to £145.3m, underpinned by sustained demand for both the CRO and PV segments and supported by the ADAMAS acquisition and foreign exchange benefit. Adjusted EBITDA rose 11.5% y-o-y, although margins were comparatively lower (19.5% versus 21.4% in FY21) due to previously flagged incremental investments in technology and senior management hires. The order book remained robust at £295m (up 23.1% over FY21), boding well for medium-term sales potential. Year-end net cash of £19.1m was an improvement over the £12m reported in H122 (after the £24.2m net cash purchase of ADAMAS in February 2022) and, with £80m in undrawn credit facilities, Ergomed remains well-capitalised to fund future growth. We make minor adjustments to our estimates and roll forward our model. We upgrade our valuation slightly to 1,577p/share from 1,573p/share previously.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 118.6 25.4 21.6 39.6 26.3 27.0
2022A 145.3 28.4 24.3 41.6 25.0 34.9
2023E 158.3 31.3 27.9 44.5 23.4 21.3
2024E 176.3 35.3 31.9 51.2 20.4 18.5

Research

Update

Healthcare

Ergomed — Poised for a strong FY22

Flash note

Healthcare

Ergomed — Sustained growth momentum in H122

Update

Healthcare

Ergomed — Healthy fundamentals for 2022

Update

Healthcare

Ergomed — Healthy CRO segment rebound confirmed

Update

Healthcare

Ergomed — US is now the biggest market in the mix

Update

Healthcare

Ergomed — Momentum continues with EBITDA upgrades

Flash note

Healthcare

Ergomed — FY21e EBITDA ‘materially ahead’ of consensus

Outlook

Healthcare

Ergomed — What’s next after stellar 2020 performance?

Thematics

thematic

Investment Companies

Emerging markets – Worthy of consideration

thematic

Investment Companies

Dynam Capital at the 2024 Vietnam ESG Conference

thematic

TMT

MediaWatch – Glimpses of positivity

thematic

Consumer

ConsumerWatch – Give me a reason to love you

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free