Ergomed (AIM: ERGO)

Last close As at 18/06/2024

1,042.00

−16.00 (−1.51%)

Market capitalisation

529m

Latest Insights

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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

edison tv

Healthcare

Ergomed – Edison Open House interview

Flash note

Healthcare

Ergomed — MedSource acquisition to boost US CRO business

edison tv

Healthcare

Ergomed – executive interview

Flash note

Healthcare

Ergomed — AGM update: ‘Revenue growth trend’ maintained

Initiation

Healthcare

Ergomed — Resilient global pharma services specialist