StockMarketWire.com - Pharmaceutical services company Ergomed posted a 44% rise in first-half profit after it won new business, including in Covid-19-related trials, and substantially boosted revenue in North America.

The company also said it was planning a capital reduction, in light of its financial progress 'and to increase its ability to pay dividends, to facilitate any prospective buy back of shares and for any other general corporate purposes'.

Pre-tax profit for the six months through June increased to £6.0m, up from £4.1m on-year, as revenue climbed 15% to £40.4m, including by 79% in North America.

The company did not declare an interim dividend.

'Ergomed has delivered exceptional progress both operationally and financially during the first half of 2020, continuing to demonstrate our ability to drive sustained growth through a clear focus on our service model strategy,' chief executive Miroslav Reljanovic said.

'We responded robustly to the challenges of the Covid-19 pandemic, with strong revenue and profit growth, a growing order book and sales momentum across the business.'

'We expect to see this momentum continue into the second half of the year, driven by further demand for our PV and CRO services.'

'We will continue to invest for organic growth and efficiency with a disciplined approach to strategic acquisition opportunities and are firmly positioned to realise our potential as a leading global provider of specialist services to the pharmaceutical industry.'

At 2:03pm: [LON:ERGO] Ergomed Plc share price was +85p at 775p



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