T ransforming drug 
development
Ergomed plc Annual Report 2014
Ergomed plc Annual Report 2014 Ergomed provides clinical development, trial management and pharmacovigilance 
services to over 60 clients ranging from top 10 pharmaceutical companies to small and 
mid-sized drug development companies. Ergomed successfully manages clinical 
development from Phase I through to late phase programmes.
Ergomed has a wide therapeutic focus, with a particular expertise in oncology, neurology 
and immunology and the development of orphan drugs. Ergomed believes its approach 
to clinical trials is differentiated from that of other providers by its innovative Study Site 
Management model and the use of Study Physician Teams, resulting in a close 
relationship between Ergomed and the physicians involved in clinical trials.
As well as providing high quality clinical development services, Ergomed is building a 
portfolio of co-development partnerships with pharma and biotech companies which 
share the risks and rewards of drug development. Ergomed leverages its expertise and 
services in return for carried interest in the drugs under development. For further 
information, visit: http://ergomedplc.com.
The Group has a clear growth strategy to become one of the leading global providers for:
• Post marketing services e.g. drug safety and medical information (pharmacovigilance)
• Rare disease/orphan drug development services
• Co-development partnerships.
Strategic 
01 Highlights
02 At a glance
04 Chairman’s statement
05	 C h i e f 	 Ex ec u t iv e 	 Of fi c e r’ s 	 revi ew
10 Business model
11 Strategic report 
Governance
16 Board of Directors
17 Directors’ report 
18 Corporate governance statement
20 Directors’ remuneration report
22 Directors’ responsibilities statement
Financial information
23 Independent auditor’s report 
to the members of Ergomed plc
24 Consolidated income statement
25 Consolidated statement of 
comprehensive income
26 Consolidated balance sheet
27 Consolidated statement of 
changes in equity
28	 Co n so li d a t ed 	 ca s h 	 flow 	 sta t e m e n t 	
29 Notes to the consolidated
	 fi n an c ia l 	 sta t em en ts	
54 Company balance sheet
55 Company statement of 
changes in equity
56	 Co m pa n y 	 ca s h 	 flow 	 sta t e m e n t
57 Notes to the company  
fi n an c ia l 	 sta t em en ts	
67 Pro forma 	 fi na n ci a l 	 i n fo rma t i o n
68 Glossary
ibc Advisors
www.ergomedplc.com
Ergomed plc (“Ergomed” or the “Group”) 
is a profitable UK-based business providing 
drug development services to the 
pharmaceutical industry and has a growing 
portfolio of co-development partnerships.  
It operates in over 40 countries. 01 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Highlights 2014
Financial highlights
 — Revenues up 40% in 2014 to £21.2 million (2013: £15.1 million)
 — Gross profit up 16% in 2014 to £5.8 million (2013: £5.0 million – 
includes £1.3 million co-development milestone) 
 — Net assets £15.3 million as at 31 December 2014 (2013: £1.9 million)
 — Cash and cash equivalents of £4.6 million as at 31 December 2014 
(2013: £1.9 million)
 — Successful initial public offering (IPO) on the AIM Market of the  
London Stock Exchange in July 2014
 — Acquired PrimeVigilance at IPO for £6.0 million in cash and  
£3.0 million in shares
 — £26.8 million of service contracts won in 2014. Total backlog  
of awarded contracts as at 1 March 2015 of approximately  
£60.0 million
Co-development highlights
 — Three Phase III oncology co-development portfolio assets 
progressing well through ongoing studies
 — Ferrer’s Lorediplon for insomnia Phase II co-development deal 
signed in January 2014 on track to start Phase II clinical studies  
in H1 2015. Site selection and initiation has commenced and the 
study is on track
 — Aeterna Zentaris (AEZS) signed Master Collaboration Agreement 
with Sinopharm A-Think for Zoptarelin Doxorubicin in China in 
December 2014. Ergomed will receive a single digit percentage  
of any net income from this China deal under the AEZS co-
development agreement for endometrial cancer signed in 2013
 — Three important clinical study results expected in 2016 from two 
Phase III studies and one Phase II study in the current portfolio
Post-period end highlights
 — Signed first orphan disease co-development agreement with 
Dilaforette for Phase II clinical development of sevuparin in patients 
with Sickle-Cell Disease (SCD) experiencing acute Vaso-Occlusive 
Crisis (VOC). The study is planned to start in H2 2015. Dilaforette 
was granted Orphan Drug Designation by the US Food and Drug 
Administration (FDA) for sevuparin in SCD in March 2015
 — Expanded presence in Asia with opening of office in Taiwan. This 
expansion is a key element of the Company’s strategic growth plan  
set out at the IPO and the Taipei base will be used as a hub for 
expansion into Asia
Revenue
+40
%
£21.2 million (2013: £15.1 million)
Gross profit
+16
%
£5.8 million (2013: £5.0 million – includes 
£1.3 million co-development milestone)
Backlog 
£60
m
at 1 March 2015
Cash and cash equivalents 
£4.6
m
at 31 December 2014 (2013: £1.9 million) 02 Ergomed plc Annual Report 2014
www.ergomedplc.com
2014 Pro forma revenue split
£23.7
m
n Ergomed n PrimeVigilance 
(acquired July 2014)
76%
24%
(see note 67 for full detail) 
Pro forma financial summary (£m) 
Revenue EBITDA Revenue EBITDA
2.3
2.8
19.2
23.7
2013 2014
Ergomed provides clinical development 
services to over 60 clients ranging from 
top 10 pharmaceutical companies to 
small and mid-sized drug development 
companies. Ergomed successfully 
manages clinical development from 
Phase I through to late phase 
programmes.
Ergomed has a wide therapeutic focus, 
with a particular expertise in oncology, 
neurology and immunology and the 
development of orphan drugs. Ergomed 
believes its approach to clinical trials is 
differentiated from that of other 
providers by its innovative Study Site 
Management model and the use of Study 
Physician Teams, resulting in a close 
relationship between Ergomed and the 
physicians involved in clinical trials.
As well as providing high quality clinical 
development services, Ergomed is 
building a portfolio of co-development 
partnerships with pharma and biotech 
companies which share the risks and 
rewards of drug development. Ergomed 
leverages its expertise and services in 
return for carried interest in the drugs 
under development. 
PrimeVigilance specialises in helping 
emerging and established companies  
to comply with post-marketing 
pharmacovigilance regulations and also 
provides medical information services. 
Offering full pharmacovigilance services 
and specialist consulting, PrimeVigilance 
covers all the regulatory, medical 
and scientific elements of PV required to 
obtain and maintain a product license 
within Europe, including:
 § EU Qualified Person
 § Detailed description of PV system
 § Validated ARISg safety database
 § Compliant PV system with robust 
Quality Management
 § REMS and RMPs
 § Medical information services
At a glance
Founded in 1997 , Ergomed plc is a 
profitable UK-based company dedicated  
to the provision of specialised services to 
the pharmaceutical industry and the 
development of new drugs. It operates 
globally in over 40 countries.
see page 06 for more 
information on Ergomed
see page 06 for more 
information on PrimeVigilance 03 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
1
2
3
6
7 8
9 5
4
10
11
12
14
13
Ergomed offices
1. San Antonio
2. Guildford
3. Frankfurt
4. Geneva
5. Pisa
6. Krakow
7. Zagreb
8. Novi Sad
9. Sarajevo
10. Kiev
11. Moscow
12. Dubai
13. Mumbai
14. Taipei
Blue areas show countries in which Ergomed has managed clinical trials for clients.
Operational network
Ergomed Clinical Research & Development
+40
Operations in over 
40 countries across five 
continents
+80
Managed the clinical 
development programmes 
of over 80 products and 
product candidates
+60
Over 60 current 
clients including top 10 
pharma and generics to 
small biotechs
15
15 years’ successful 
track record
+300
Over 300 employees, 
85 of whom are 
medically qualified
Regulatory Affairs Consultancy
Quality Assurance
Data Management
& Biostatistics
Central Laboratory
Assistance
Medical Writing
Project Management
& Monitoring
Unique Site Management
Study Physician Support 
Full range of clinical development services 04 Ergomed plc Annual Report 2014
www.ergomedplc.com
Chairman’s statement
Ergomed has made a strong start as a 
newly listed AIM Company, and on behalf 
of the Board, I welcome our new 
shareholders. The Board is committed 
to delivering the strategy as set out in 
the IPO Admission Document with the 
goal of building significant value over  
the next few years through continuing  
to grow the established, profitable 
services businesses – Ergomed and 
PrimeVigilance. Concurrently, Ergomed 
will expand its co-development portfolio 
on a selected basis with the intention of 
delivering significant clinical data over 
Ergomed has made a 
strong start as a newly 
listed AIM Company, 
and on behalf of the 
Board, I welcome our 
new shareholders.
Rolf Stahel 
Chairman
the next few years that, if the data is 
positive, will generate additional income 
and value for shareholders as the 
partnered assets are commercialised.
I would like to thank the Board, 
Ergomed’s employees and our advisors 
for all their hard work in 2014, and based 
on our continued combined efforts,  
I look to the future with confidence.
Our history
1997 Foundation in Zagreb, Croatia
2000 Established UK holding company
2001 International expansion started, 
including:
2003 Germany office – Frankfurt 
2004 Poland office – Krakow
2005 USA office – San Antonio
2007 Russia office – Moscow
2007 Middle East office – Dubai
2015 Taiwan office – Taipei
2006 First co-development deal signed
2008 Foundation of PrimeVigilance  
in UK
2009 Genzyme co-development  
deal signed
2011 Synta co-development  
deal signed
2013 Cel Sci and Aeterna Zentaris 
co-development deals signed
2014 Ferrer co-development  
deal signed
2014 PrimeVigilance wins Queen’s 
Award
2014 AIM listing on London Stock 
Exchange and acquires 
PrimeVigilance
2015 Dilaforette co-development  
deal signed 05 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Chief Executive Officer’s review
2014 has been a transformational year 
for Ergomed, and we are excited by the 
continued prospects for growth for our 
business as outlined at the IPO on the 
AIM market in July 2014.
The Group had a successful year with a 
total of £26.8 million of contracts won in 
2014, a 40% increase on 2013, reflecting 
a strong demand across all divisions  
and Ergomed’s well-established market 
position.
The 2014 contract wins included several 
multi-million pound full service Phase II 
and Phase III studies and full service 
pharmacovigilance services to late stage 
biotech and pharma companies. The 
majority of these contracts are already 
in process and are scheduled to be 
completed over the next few years. 
Ergomed ended 2014 with a total 
backlog of contracted work from all its 
business segments with a value to be 
invoiced in the future of approximately 
£60.0 million. This strong close to the 
year has been driven by the continued 
recognition of the benefits of Ergomed’s 
approach to drug development,  
co-development and drug safety services 
from new and existing partners.
Global demand for quality drug 
development services remains strong 
and Ergomed is benefiting from this 
demand. In addition, the fundraising 
environment for biotech in the US and 
EU will increase the need for clinical 
trial related services. Ergomed has 
significant experience of working with 
such biotech and pharmaceutical 
companies and has a track record of 
being able to tailor its full service 
capability to meet clients’ particular 
requirements. Ergomed is also in  
the unique position of offering  
co-development partnerships and is 
committed to building its portfolio of 
co-development assets and delivering 
significant clinical data, thereby creating 
shareholder value in the next few years.
The Board was very pleased to acquire 
PrimeVigilance at the time of the IPO. 
PrimeVigilance is a fast growing 
business with a strong brand in its 
sector. Its specialisation in marketed 
drug safety services broadens the 
overall Ergomed offering. While 
Ergomed is principally R&D focused, 
PrimeVigilance typically targets 
companies marketing pharmaceutical 
and/or generic drugs. There is also the 
potential for synergy and cross selling 
between the two companies through 
their well-established business 
development networks.
2014 has been a 
transformational year 
for Ergomed, and we 
are excited by the 
continued prospects  
for growth for our 
business as outlined  
at the IPO on the AIM 
market in July 2014.
Dr Miroslav Reljanovic 
Chief Executive Officer About Ergomed
About PrimeVigilance
06 Ergomed plc Annual Report 2014
www.ergomedplc.com
Chief Executive Officer’s review continued
37
%
Revenue growth from 2013 to 2014.
+140
Over 140 employees, most of whom are medics, 
pharmacists or life science graduates.
Ergomed plc has two complementary 
businesses:
(1) The Services Business – a well-
established clinical research business 
providing services to the pharmaceutical 
and biotechnology industry; and
(2) The Co-Development Business – a 
growing portfolio of partnerships with 
pharmaceutical and biotech companies, 
providing its drug development services 
in exchange for a carried interest in any 
revenues attributable to the drug asset, 
including outlicensing milestones as well 
as sales of the product.
Since its formation, Ergomed plc has 
been providing expertise in clinical 
development/trial management from  
PrimeVigilance is a Pharmacovigilance 
(PV) and Medical Information Services 
company with an established international 
footprint and a heritage of excellence  
and leadership in the field of 
pharmacovigilance.
PrimeVigilance was established in 2008 
and offers a comprehensive, top quality, 
cost-effective, innovative safety services 
and medical information services for 
pharmaceutical, generic and 
biotechnology companies. 
the largest pharmaceutical companies, as 
well as many small and mid-sized drug 
development companies. Ergomed plc 
successfully manages clinical 
development from Phase I through to late 
phase programmes.
Ergomed plc has a wide therapeutic focus, 
but has particular expertise in oncology, 
neurology and immunology and the 
development of orphan drugs. Ergomed 
plc believes its approach to clinical trials is 
differentiated from that of other providers 
by its innovative Study Site Management 
model and the use of Study Physician 
Teams, resulting in a close relationship 
between Ergomed plc and the 
investigational sites involved in clinical 
trials. As well as providing high quality 
clinical development services,  
Ergomed plc is building a portfolio of 
co-development partnerships with  
pharma and biotech companies which 
share the risks and rewards of drug 
development. Ergomed plc leverages its 
expertise and services in return for 
carried interest in the drugs under 
development.
The Company has planned, managed, 
monitored and reported clinical trials 
with a range of technologies that include 
small molecule drugs, monoclonal 
antibodies, tri-functional antibodies, 
soluble receptors and other targeted 
agents, cancer vaccines and 
immunotherapy, radioactive agents and 
photodynamic therapies.
Expert pharmacovigilance services
The pharmacovigilance services offered by 
PrimeVigilance cover all the regulatory 
and scientific elements of PV required to 
obtain and maintain a product licence 
within Europe: Qualified Person, Risk 
Management Planning (RMP), and a 
compliant PV System with consistent 
Adverse Event data capture, robust Quality 
Management, expedited reporting, 
preparation of PSURs, literature 
screening, signal detection and evaluation, 
benefit-risk assessment, compliance 
auditing, support during crisis and various 
ad hoc assignments. PrimeVigilance also 
offers fully integrated international 
Medical Information service.
PrimeVigilance specialises in helping 
emerging companies comply with 
regulations, from developing the initial 
Detailed Description of PV System and 
RMP to full management of safety 
operations.
A global reach
PrimeVigilance has grown organically 
since 2008 and now has over 140 staff 
employed in its main offices in Guildford, 
UK, and Zagreb, Croatia. PrimeVigilance  
is currently providing services across  
100 countries.
“ 
During the past months we have seen very rapid increases in the rate 
of enrolment in this study… due to the addition of new centres and the 
intense site support by our clinical research partner Ergomed…
”
Co-development partner’s CEO comment. May 2014
PrimeVigilance received  the Queen’s Award for 
Enterprise Recognition of Substantial Growth 
and Commercial Success in April 2014. 07 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
In line with its strategy to expand 
through organic growth and acquisitions, 
Ergomed announced the opening of a 
new office in Taiwan in March 2015 – its 
first office in Asia. The new subsidiary 
company in Taipei will act as a hub for 
business activity across the country and 
the wider Asian market, ensuring 
Ergomed is best placed to support 
existing and new clients with business 
interests in the region. The Taiwan 
operations will be led by Executive 
Director of Global Clinical Operations,  
Dr Sy-Shi Wang. Born in Taiwan and now 
a US citizen, Dr Wang brings extensive 
international experience.
The Ergomed co-development model
Ergomed’s four late stage co-development 
partnerships progressed well in 2014. 
Under these agreements, Ergomed is 
contributing to the cost of the clinical 
trials and in return will receive a share 
of any proceeds generated from the 
commercialisation of the partnered  
drug asset.
Ergomed has the potential to receive 
over $100 million in its share of future 
revenues from the three ongoing 
co-development deals it has in oncology 
with three different US listed 
biotechnology companies. The actual 
revenues that will be generated are 
dependent on the projects’ future clinical 
results and also their subsequent 
commercialisation by our partners.
In January 2014, Ergomed signed a 
co-development agreement with Ferrer 
for a Phase II study in insomnia which is 
ready to start in H1 2015. Additionally, 
Ergomed’s co-development partner 
Aeterna Zentaris signed a Master 
Collaboration Agreement for zoptarelin 
doxorubicin in China with Sinopharm 
A-Think in December 2014, triggering a 
payment to Ergomed of a single digit 
percentage of any net income from  
this China deal under the AEZS  
co-development agreement.
Co-development portfolio
Current portfolio of co-development projects that share risks/rewards:
n Indicates Ergomed 
co-development 
investment phase
Co-development Phase 1 Phase II Phase III Results
Ferrer 
Lorediplon
Insomnia Results 2016
Synta Pharma 
Ganetespib
NSLC Phase III Results 2016
Aeterna Zentaris 
EZS 108
Endometrial Cancer Results 2016
Cel-Sci 
Multikine
®
Head & Neck Cancer Results 2018
Cel-Sci 
Multikine
®
Peri-anal warts in HIV/HPV Results TBC
Dilaforette 
Sevuparin
Sickle-Cell Disease Results TBC
Targeting two new deals per year
Ergomed and 
PrimeVigilance target  
a wide range of 
international healthcare 
clients – biotech, 
pharma and generics. 08 Ergomed plc Annual Report 2014
www.ergomedplc.com
Ergomed continues to advance its 
leading co-development model and  
in February 2015 signed its fifth  
co-development agreement, and first 
co-development agreement in orphan 
drug development, with Dilaforette  
for Phase II clinical development of 
sevuparin in patients with Sickle-Cell 
Disease (SCD) experiencing  
acute Vaso-Occlusive Crisis (VOC). 
Ergomed will co-invest a proportion of 
its revenues from the clinical and 
regulatory activities of the trial in return 
for an equity stake in Dilaforette.
The status of Ergomed’s current 
partnerships is summarised below.
CEL-SCI (NYSE MKT: CVM): 
Ergomed is working with CEL -SCI on the 
largest ever Phase III study in head and 
neck cancer with lead product 
Multikine
®
. The trial will enrol 
approximately 880 patients with 
advanced primary head and neck cancer. 
CEL -SCI recently announced that a total 
of 252 patients had been enrolled, 
representing over one quarter of the 
total enrolment for the study. Four 
clinical sites in the US have been added 
and the trial is currently being expanded 
to the UK, Austria, Sri Lanka, Turkey and 
France. Ergomed and CEL -SCI have also 
agreed to commence Phase I studies in 
the additional indication of peri-anal 
warts in HIV/HPV co-infected patients 
and have commenced planning for a 
Phase II study in cervical dysplasia in 
HIV/HPV co-infected patients.
Synta Pharmaceuticals (NASDAQ: SNTA): 
Ergomed is in a co-development 
partnership on Synta’s lead development 
candidate, ganetespib, in clinical studies 
for a number of cancer indications. Synta 
reported final results from the global, 
randomised, multi-centre Phase IIb 
GALAXY-1 study in advanced non-small 
cell lung cancer (NSCLC) 
adenocarcinoma in May 2014. Final 
results from this trial, in particular 
encouraging overall survival results and 
tolerability profile in chemosensitive 
patients, supports the selection of the 
chemosensitive population for the 
pivotal Phase III GALAXY-2 study. Synta’s 
pivotal Phase III GALAXY-2 study of 
ganetespib and docetaxel vs. docetaxel 
alone for the 2nd line treatment of 
patients with NSCLC adenocarcinoma 
remains on track to meet previously 
guided data readout timelines in H2 2015 
and the final analysis to be conducted in 
2016. In July 2014, Synta announced the 
advancement of ganetespib into a Phase 
III extension of the AML LI-1 (less 
intensive) study in newly diagnosed 
elderly patients with acute myeloid 
leukemia (AML) or high-risk 
myelodysplastic syndrome (MDS) who 
are not eligible for intensive 
chemotherapy. In addition, Synta has 
recently announced that enrolment has 
begun in the Phase I safety portion of the 
GANNET53 study in ovarian cancer.
Aeterna Zentaris Inc. (NASDAQ: AEZS; 
TSX: AEZ): 
Ergomed is working with Aeterna 
Zentaris on the Phase III pivotal study 
comparing zoptaerlin doxorubicin 
(“ZoptEC” study) as second line therapy 
for locally-advanced, recurrent or 
metastatic endometrial cancer. The 
ZoptEC study is being conducted over 
120 sites in North America, Europe, 
Israel and other countries under a 
Special Protocol Assessment. Site 
initiation is complete and patient 
recruitment is on track with over 400 of 
the expected 500 patients entered into 
the study. The primary efficacy endpoint 
is improvement in median overall 
survival. The ZoptEC study is on track to 
reach the number of patients required to 
secure the first interim analysis in the 
H1 2015, and patient recruitment should 
be completed by year-end.
Chief Executive Officer’s review continued
Ergomed’s  
co-development 
partnerships are  
on plan to deliver 
important Phase III and 
Phase II data in 2016. 09 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Ferrer: 
Ergomed has partnered with Ferrer on 
Lorediplon which is a novel, longer 
acting non-BZD hypnotic drug that 
modulates the GABAa receptor. 
Compared to other non-BZD receptor 
agonists (such as zolpidem), Lorediplon 
has demonstrated in preclinical and 
clinical studies a potent hypnotic profile 
and extended systemic half-life, 
properties that could confer potential 
clinical benefits in terms of sleep 
maintenance and sleep architecture. 
Ergomed is on track to start the Phase II 
study in insomnia with first patient to be 
dosed in H1 2015. Site selection and 
initiation has commenced and the study 
is on track.
Dilaforette: 
Ergomed is working with Dilaforette on 
the Phase II study of sevuparin in 
patients with Sickle-Cell Disease (SCD) 
experiencing acute Vaso-Occlusive 
Crisis (VOC). Dilaforette was granted 
Orphan Drug Designation by the US Food 
and Drug Administration (FDA) for 
sevuparin in SCD in March 2015. The 
study is planned to start in H2 2015. 
Dilaforette is part of the Karolinska 
Development AB (STO: KDEV, 
‘Karolinska Development’) portfolio.
Dr Miroslav Reljanovic
Chief Executive Officer
Chief Executive 
Officer Q&A
Q. What are Ergomed’s unique  
selling points? 
A. Ergomed was founded by Dr Miroslav 
Reljanovic, a hospital neurologist 
participating in clinical research who 
identified a need for more efficiently 
run clinical studies. Ergomed’s 
operational approach was 
established from the start to ensure 
that the crucial role of the hospital 
investigator in a clinical study is 
supported by a better administrative 
structure in order to deliver higher 
quality and efficiency, and ensure that 
key timelines are met. Ergomed does 
this through its unique Study Site 
Management System and Study 
Physician Team.
Q. How does Ergomed carry out clinical 
studies across the world? 
A. Ergomed has many well established 
offices staffed with its own employees 
and is also expanding into new 
territories led by customer demand. 
An example of this is Taiwan where 
Ergomed’s new office will act as a 
hub for business activity across the 
country and the wider Asian market. 
Ergomed also has a network of 
sub-contractors who can support its 
own employees in running studies in 
countries where Ergomed currently 
does not have an office, for example 
in South America.
Q. What is Ergomed’s co-development 
business? 
A. Ergomed believes that having a share 
in the commercialisation potential  
of drug assets could potentially 
generate significant cash inflows and 
a higher valuation from Ergomed’s 
broad expertise in drug development. 
This is in addition to the value 
generated by the growing full  
service businesses.
Q. How does Ergomed select  
co-development projects? 
A. Ergomed has established a due 
diligence team of in-house and 
external consultant experts who can 
review potential co-development 
projects and also negotiate the 
partnership agreements.
 
Q. When will Ergomed receive 
significant revenues from its 
co-development portfolio? 
A. Ergomed expects significant clinical 
data to be announced in 2016 from 
two Phase III and one Phase II 
co-development partnership. If these 
studies are successful, it is possible 
that Ergomed’s partners will then 
commercialise the assets generating 
revenues from which Ergomed will 
get paid its due share from the 
co-development agreement.
Q. Why is PrimeVigilance a good addition 
to the Ergomed group? 
A. PrimeVigilance focuses on supplying 
safety services to companies selling 
drugs across the world. This is an 
additional market to Ergomed’s 
traditional focus on clinical drug 
development and diversifies the risk of 
focusing solely on drug development 
spend. PrimeVigilance is fast growing 
as it is benefitting from increased 
international regulations and a trend 
for outsourcing.
Q. What is Ergomed’s long term 
strategy? 
A. The Ergomed Board plans to build a 
global company that has a strong, 
profitable services business  
focused on drug development and  
post-marketing services such as 
pharmacovigilance. At the same time 
Ergomed is building a portfolio  
of selected co-development 
partnerships that leverage its drug 
development expertise and have the 
potential to add significant income 
and shareholder value as the 
successful co-development assets 
are commercialised. 10 Ergomed plc Annual Report 2014
www.ergomedplc.com
Business model
A high-growth, low-risk service business 
combined with co-development partnerships 
which offer the potential for substantial capital 
returns from an expanding portfolio of assets.
Fast growing, profitable, international business
Underpinned by our key strengths
 § Our unique co-development 
business differentiates us 
from our competitors
 § Expertise – over 15 years’ 
experience, working across the 
world with large and small 
companies testing a wide range of 
drug types from biologics to 
classical new chemical entities
 § Tailored solutions to each 
client and project. Quality driven 
processes at the heart of all 
operations
 § Highly qualified staff – many hold 
medical qualifications and PhDs, 
and know our company well due to 
extremely high staff retention rates 
(<10%), so company experience 
resides within Ergomed teams
 § Specialised Study Site Management 
model allows smooth interaction of 
the sites and investigators, patient 
organisations and advocacy groups
 § Close medical relationships with 
investigational sites involved 
in clinical trials
 § PrimeVigilance provides a 
comprehensive range of high 
quality and cost-effective safety 
and medical information services
Services
 § Clinical research and development from 
Phase I-IV trials 
 § PrimeVigilance – drug safety – clinical and 
post-marketing
 § Specialists in oncology, neurology, 
immunology and rare diseases
 § Well established, profitable business
 § Attractive financial profile of high growth, 
low risk, diversified markets
 § Well positioned to capitalise on industry trends 
to outsource drug development 
Co-development
 § Portfolio of carried interests 
 § Five current active partnerships
 § Significant potential returns from 
current agreements 
 § New deals under review 11 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Ergomed has identified the following key 
strategic goals to grow the business:
To expand the portfolio of co-development 
partnerships
The Directors plan to sign, on average, 
two co-development agreements a year 
with the aim of building a portfolio of ten 
active partnerships in the mid-term.
Over the longer term, the Directors will 
also look to acquire larger carried 
interests in selected assets through the 
acquisition of regional rights or similar 
arrangements whereby Ergomed can 
gain greater control over the 
commercialisation of the drug.
To become one of the leading global 
providers for orphan/rare disease drug 
development
Ergomed will seek to expand its rare 
disease franchise to become one of the 
leading global providers of clinical trials 
and consultancy services for these 
difficult conditions. Ergomed’s medically 
led approach to the planning and 
execution of clinical studies is 
particularly suited to orphan drug 
development studies because of the 
difficulty in recruiting patients and the 
complexity of these trials.
To become a leading global provider of 
pharmacovigilance, medical information 
and other post-marketing services
Ergomed plans to expand further into 
post-marketing services as the 
Directors believe that Ergomed will be 
well positioned to take advantage of this 
rapidly growing market with its high 
barriers to entry. It also diversifies risk 
for Ergomed by accessing the product/
marketing budgets as well as the 
research and development budgets  
of pharmaceutical and biotech 
companies. To achieve this goal, 
Ergomed will seek to build additional 
expertise in regulatory, clinical and  
post-marketing services.
To complete key acquisitions
The Directors believe that the Services 
Business is well positioned to win more 
clients from mid-sized pharma and 
biotechnology companies across the 
world and a planned increase in activity 
in North America and in particular in 
Asia is a fundamental part of the 
strategy.
In order to accelerate the expansion of 
the Service Business, the Directors plan 
to use the proceeds of the IPO to 
complete a select number of strategic 
acquisitions of service businesses and 
have initiated discussions with several 
possible targets. These include existing 
partners with strong brand presence or 
other small CROs and data management 
providers enabling Ergomed to expand 
rapidly both its geographical footprint 
and service capabilities.
The planned expansion of the Services 
Business will also increase the number 
of opportunities for co-development 
agreements as both Ergomed’s access 
to partners in new markets and its 
ability to undertake a greater number of 
partnerships, from a financial and 
operational perspective, increase.
Outlook
Following its IPO, Ergomed has a strong 
balance sheet and a good backlog  
of signed contracts that will be  
delivered over the next few years. The  
co-development portfolio is on plan to 
deliver important clinical trial results in 
2016. If these clinical trial results are 
positive they have the potential to deliver 
significant financial returns in cash to 
the Group. The Board expects to 
continue to expand its co-development 
portfolio in line with the objectives 
stated at the IPO. Ergomed also has a 
strong set of new co-development leads 
under discussion and the Board expects 
to expand the portfolio in 2015 in  
line with its stated strategy. The 
PrimeVigilance drug safety business is 
also trading in line with expectations and 
has a strong order book including some 
recent high quality contract wins in the 
UK and US. Ergomed is looking at 
several growth opportunities to add to 
its international footprint and strengthen 
its service offerings as outlined in the 
IPO Admission Document. We are 
working hard across the business to 
ensure that 2015 is another year of 
strong progress for Ergomed.
Strategic report 12 Ergomed plc Annual Report 2014
www.ergomedplc.com
Strategic report continued
Financial review
Key Performance Indicators
The Directors consider the principal financial performance 
indicators of the Group to be those shown below:
2014 
£m 
2013 
£m
Revenue 21.2 15.1
Gross profit 5.8 5.0
Operating profit
1
0.8 1.8
Cash and cash equivalents 4.6 1.9
1 Please refer to the pro forma financial information on page 67, which explains the 
adjustments between the pro forma operating profit and the operating profit in 
the above table.
The Directors consider the principal non-financial 
performance indicators of the Group to be:
• The expansion of the co-development portfolio and the 
addition of two new partnerships per year
• The development of new and/or the expansion of existing 
service offerings
• The delivery of high quality services that continue to meet 
the highest industry standards as evidenced by internal and 
external quality audits which have been completed 
satisfactorily in both the current and prior years
Consolidated statement of comprehensive income
Revenue for the year ended 31 December 2014 was £21.2 
million (2013: £15.1 million). Note that 2014 included the 
post-acquisition results of PrimeVigilance and 2013 included a 
non-recurring milestone payment from a co-development 
partner of £1.3 million. PrimeVigilance was acquired in July 
2014 and the impact of this acquisition on the 2014 results is 
shown in note 28 and PrimeVigilance financial records are 
consolidated from the acquisition on 15 July 2014.
Gross profit was £5.8 million and gross margin was 27% (2013: 
gross profit £5.0 million and gross profit margin 33%. After 
adjusting for the non-recurring co-development milestone of 
£1.3 million received in 2013 the gross profit for 2013 was £3.7 
million and gross margin 27%). Ergomed’s gross margin 
fluctuates compared to a traditional clinical research 
organisation (CRO) service provider as Ergomed operates a 
hybrid model working with customers on a normal full priced 
basis as well as working with co-development partners where 
Ergomed is carrying out clinical studies at reduced fees in 
return for carried interests in the partnered product. The mix 
of full service work to co-development work in any given period 
will therefore affect the gross profit and gross margin.
Operating expenses and operating profit
Administration expenses in 2014 of £3.7 million are higher than 
the prior year costs of £3.2 million mainly due to corporate 
costs and the inclusion of PrimeVigilance. There is also an 
increased depreciation/amortisation charge in 2014 of £0.4 
million (2013: £nil) due to the amortisation of the intangible 
assets associated with Ergomed Virtuoso acquisition that was 
completed on 30 September 2013 and the PrimeVigilance 
acquisition that was completed in July 2014. There is also a 
non-cash share-based payment charge in 2014 of £0.3 million 
relating to share options issued prior to the IPO in April 2014. 
Operating expenses for 2014 also include the non-recurring 
IPO and acquisition costs of £0.6 million.
Operating profit in 2014 was £0.8 million (2013: £1.8 million). 
The 2014 profit is reduced in line with the increased expenses 
noted above. Also it should be noted that 2013 operating  
profit included a non-recurring milestone payment from  
a co-development partner of £1.3 million.
Consolidated balance sheet
As at 31 December 2014 total assets less total liabilities 
amounted to £15.3 million (2013: £1.9 million) including cash 
and cash equivalents of £4.6 million (2013: £1.9 million).
The principal movements in the Consolidated balance sheet 
during the year were:
• Acquisition of PrimeVigilance in July 2014 and the 
associated acquisition of goodwill, intangible and other 
assets (see note 28)
• Increase in cash and cash equivalents of £2.6 million due to 
the net funds raised at the IPO
• Increase in trade and other receivables of £3.1 million, with 
debtor days increasing from 56 to 81, reflecting the growth 
in revenues in 2014 and also the inclusion of PrimeVigilance 
trade and other receivables following its acquisition in  
July 2014
• Increase in trade and other payables of £0.6 million due to 
increased trading and the inclusion of PrimeVigilance
• Issue of 6.875 million shares at £1.60 raising £11.0 million 
before expenses. In accounting for the costs associated with 
the IPO in July 2014, £1.6 million of allowable expenses have 
been debited to the share premium account 13 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Consolidated cash flow statement
The Ergomed Group was profitable and cash generative during 
2014 and 2013. The IPO in 2014 has had a significant impact on 
the cash flows for the year as noted below. At present the 
Group does not have any borrowings or long term debt apart 
from a few immaterial fixed asset finance leases.
The principal cash inflows in the year were the significant cash 
inflow from the IPO gross proceeds of £11.0 million and also 
cash inflow from operating activities of £0.5 million.
The principal cash outflows were the cash used to acquire 
PrimeVigilance of £6.3 million including expenses and also the 
total expenses and other costs directly relating to the IPO of 
£1.9 million. The Group also paid taxation of £0.4 million in 2014.
Financial outlook
As stated at the IPO in the Admission Document, Ergomed’s 
Board has set the objective of remaining profitable and cash 
generative. This is being achieved by running profitable 
healthcare services businesses alongside a managed portfolio 
of drug co-development partnerships where Ergomed 
contributes services at reduced prices in return for a carried 
interest in the potential commercial returns that may be 
generated in the future if the clinical studies are successful.
Ergomed currently has a strong contracted backlog of about 
£60.0 million and the overall trading environment for full 
service business is generally strong although still very 
competitive. Ergomed’s Board believes it can continue to 
generate further growth and profits from both Ergomed and 
PrimeVigilance businesses in 2015 and beyond, whilst at the 
same time expanding the co-development portfolio on a 
selected basis.
Going concern
As at 31 December 2014 the Group had £4.6 million in cash or 
cash equivalents and a strong backlog of signed contracts and 
is currently forecasting to be profitable and cash positive for 
the 12 months from the date of this report and the foreseeable 
future. Therefore, after due consideration of the cash flow 
forecasts of the Group and the risks and uncertainties 
associated with the business of the Group, the Directors are of 
the view that Ergomed will continue to have access to adequate 
resources and have the ability to meet its liabilities as and 
when they fall due to allow the Group to continue trading on 
normal terms of business for no less than 12 months from the 
date of signing of the financial statements and have therefore 
prepared the financial statements on a going concern basis. 14 Ergomed plc Annual Report 2014
www.ergomedplc.com
Strategic report continued
Risks relating to the Group and the markets in which the Group operates
Competition
Ergomed’s competitors and potential competitors include 
companies which may have substantially greater resources 
than those of Ergomed. The additional financial transparency 
to which Ergomed is subject following Admission may have the 
effect of increasing the number of competitors. Generally, the 
ability of Ergomed to win new business or repeat business 
from existing customers is a key risk and if the business 
development function fails to deliver new, profitable contracts 
then Ergomed’s profits and cash flows will suffer.
Dependency on pharmaceutical industry
A significant proportion of Ergomed’s current revenue results 
from expenditure by pharmaceutical and biotech businesses 
on research and development and regulatory compliance. If 
customers or potential customers in this sector were to:
• reduce such expenditure, in particular by reducing the 
numbers of drugs put into clinical trials;
• seek to retain work in-house rather than outsourcing it; 
and/or
• consolidate through the vertical integration of their 
businesses and choose not to engage Ergomed,
Ergomed’s business could be negatively impacted.
Legislation and regulation of the pharmaceutical and biotechnology 
industries
An element of Ergomed’s competitive advantage stems from 
its ability to navigate the strictly regulated medicinal products 
and clinical trial services approval processes, which are 
expensive, complex and demanding. If there were to be 
substantial relaxation of such processes, cross jurisdictional 
harmonisation or simplification of the legislative or regulatory 
framework, this could reduce the barriers to entry which 
prospective competitors face, thereby eroding part of the 
Group’s competitive advantage. If such a change were to occur, 
this may have a negative impact on Ergomed’s business 
opportunities. Conversely, any change to, or increase in the 
complexity of, legislative or regulatory requirements having 
the effect of preventing Ergomed operating in a particular 
country, or compliance with which would require significant 
expenditure on the part of Ergomed, could have a material 
adverse effect on Ergomed’s operations, profitability and 
financial performance.
Licences, approvals and compliance
Ergomed is dependent to a significant degree on certain 
licences and regulatory approvals. Non-compliance with those 
licences is likely to result in a warning from the relevant 
authority. However, in extreme cases, licences may be 
restricted or revoked, which could adversely affect Ergomed’s 
business, results of operations, financial condition and future 
prospects. More generally, Ergomed operates in an 
environment which is subject to detailed and complex 
regulation. This places a significant compliance burden on 
Ergomed, since any failure to achieve compliance could result 
in the termination of Ergomed’s contracts and in significant 
reputational damage as well as regulatory fines.
Customers, pricing and payment terms
Some of Ergomed’s customers may have substantial 
purchasing power and negotiating leverage. While Ergomed 
has historically been able to secure good contractual terms, 
there can be no assurance that it will continue to be able to do 
so in the future. In certain cases Ergomed may accept payment 
terms which impact adversely upon the revenue received by, 
the margins achieved by, and the cash flow of, Ergomed in any 
given period.
Dependence on a limited number of key clients
A significant proportion of the Group’s revenue is derived from 
a relatively small number of clients, although the identity of the 
top five clients has varied over the last three financial years. 
The percentage of the Group’s total invoiced revenue generated 
by the top five clients in the year ended 31 December 2014 was 
59%. The loss of any client or clients who represent a 
significant proportion of Ergomed’s revenue could have a 
negative impact on Ergomed’s operating results and cash 
flows.
Cancellation or delay of clinical trials by customers
The customers of Ergomed may cancel or delay proposed 
clinical trials either without notice or upon short notice. The 
cancellation or delay of a clinical trial may result in a risk of 
Ergomed having to reduce its staff overheads which could in 
turn have a negative impact on the Group’s profitability, albeit 
that the terms of Ergomed’s contracts seek to mitigate the 
impact of any such cancellation or delay by structuring 
standard study close down procedures with the customer. 15 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Treasury policy and financial risk
The Group maintains a centralised treasury function, which 
operates under policies and guidelines approved by the Board. 
These cover funding, management of foreign exchange 
exposure and interest-rate risk. The purpose is to manage  
the financial risks of the business and to secure the most 
cost-effective funding. The Group’s principal financial assets 
are bank balances and long term deposits, which are exposed 
to varying degrees to the following risks: liquidity risk, credit 
risk and foreign currency risk. The policy for managing these 
risks is outlined below:
• liquidity risk – the Group maintains good relationships with 
its banks, financial institutions with high credit ratings, and 
its working capital requirements are anticipated via the 
forecasting and budgetary process; and
• credit risk – the Group is mainly exposed to credit risk from 
its trade and other receivables, short term deposits and 
bank balances, and mitigates the risk by managing any 
exposure to a single institution.
An allowance for impairment is made where there is an 
identified loss event which, based on previous experience, is 
evidence of a reduction in the recoverability of the cash flows.
Management considers the above measures to be sufficient to 
control the credit risk exposure.
Foreign currency risk
A significant proportion of Ergomed’s business is carried out, 
and is intended to be carried out in the future, outside the UK 
and in the relevant local currency. To the extent that there are 
fluctuations in exchange rates outside any hedged positions 
that the Group may contract, this may have a material impact 
on Ergomed’s financial position or results of operations, as 
shown in Ergomed’s accounts. Ergomed manages this risk by 
seeking advice from specialist foreign currency brokers, 
regularly reviewing the geographical mix of its operational 
costs and also its currency revenue streams and by the 
inclusion of exchange rate reviews in its major commercial 
contracts.
Approved by the Board of Directors and signed on behalf of  
the Board.
N Clark
Director
15 May 2015 16 Ergomed plc Annual Report 2014
www.ergomedplc.com
Board of Directors
Rolf Stahel – Non-Executive Chairman
Rolf Stahel brings over 30 years’ experience in the global 
pharmaceutical industry. He led Shire Pharmaceuticals Group 
plc as Chief Executive Officer from 1994 to 2003 building Shire 
into a FTSE 100 Company.
Rolf worked for 27 years with Wellcome plc in Switzerland, 
Italy, Thailand, Singapore and the UK. Rolf sits on the Advisory 
Board of Imperial Business School (Imperial College London). 
He has been non-executive Chairman of several companies 
including: Newron Pharmaceuticals; Cosmo Pharmaceuticals; 
PowderMed; EUSA Pharma. He is currently Non-Executive 
Chairman of Connexios Life Sciences and Midatech. Rolf, a 
Swiss national, is a graduate in Business Studies (KSL, CH) and 
attended 97th AMP (Harvard).
Dr Miroslav Reljanovic – Founder and Chief Executive Officer 
Dr Miroslav Reljanovic is a medical doctor and a board-
certified neurologist. Whilst practicing as a physician in a large 
WHO Collaborating Centre in Zagreb, he was the clinical 
investigator in numerous Phase II and III studies in the field of 
neurology and a consultant to various pharmaceutical 
companies. In 1997 Miro founded Ergomed and he introduced 
the novel Study Site Coordination model as an intrinsic part of 
the conduct of clinical studies. Together with co-founder Elliot 
Brown, MB, MRCGP, FFPM, a well-known international expert 
in drug safety, Miro started PrimeVigilance in 2008, which soon 
became a leading specialist vendor of contracted 
pharmacovigilance services to the pharmaceutical industry.
Neil Clark – Chief Financial Officer
Neil Clark joined Ergomed as Chief Financial Officer in January 
2009. Prior to joining Ergomed, Neil was Chief Executive Officer 
of CeNeS Pharmaceuticals plc, a UK biotech company listed in 
London. CeNeS was acquired by the German biotech company 
Paion in 2008. Neil joined CeNeS in 1997 when it was a venture 
capital backed private biotech company and later became Chief 
Financial Officer. CeNeS was listed in 1999 and Neil was 
appointed Chief Executive Officer in 2001. Prior to joining 
CeNeS, Neil worked for PWC in Cambridge, UK, for over ten 
years on a variety of local, national and international 
assignments in audit, corporate finance and consultancy. Neil 
is a qualified chartered accountant (FCA).
Peter George – Non-Executive Director
Peter George joined Ergomed as a non-executive director in 
May 2014. Peter has over 20 years’ experience in the 
pharmaceutical services industry and is currently Chief 
Executive Officer of Clinigen Group plc (AIM: CLIN), the global 
specialty pharmaceuticals and pharmaceutical services 
business. Prior to Clinigen, he was CEO at Penn Pharma, 
having led a £67m management company buy-out in 2007. 
Before this, Peter was executive Vice President for Wolters 
Kluwer Health with responsibility for Europe and Asia Pacific 
regions. Peter has also held roles as the Chief Operating 
Officer of Unilabs Clinical Trials International Limited, Head of 
Clinical Pathology in the Oxford region of the NHS and as 
Director of PharmaPatents Global.
Christopher Collins – Non-Executive Director
Christopher was the CEO and a founding partner of Code 
Securities, a healthcare-focused advisory and broking firm, 
which was formed in 2003, acquired by Nomura in 2005 and 
continued as Nomura Code Securities until late 2013. Chris 
was previously head of the Life Sciences Group at 
WestLBPanmure, having founded that firm’s activities in the 
sector in 1993. He has advised companies at all stages of 
development on transactions including private financings, 
IPOs, secondary offerings and mergers and acquisitions. Prior 
to WestLBPanmure, Chris was Managing Director of Corporate 
Finance at Panmure Gordon, after eight years as a Director of 
Corporate Finance at Hoare Govett and nine years in corporate 
finance at Charterhouse Japhet. He has an MBA and read 
Biology at Sussex University.
The Executive Directors have served throughout 2014 and the prior year. 
The Non-Executive Directors were appointed to the Board in preparation 
for the Admission to AIM at the IPO to broaden the experience of the 
Board and to ensure sufficient Non-Executive Directors in accordance 
with best practice of corporate governance. 17 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Directors’ report
For the year ended 31 December 2014
The Directors present their report and financial statements for 
the Company and Group for the year ended 31 December 2014.
Principal activities
Ergomed is a profitable global business providing drug 
development and safety services to the pharmaceutical 
industry and has a growing portfolio of co-development 
partnerships. It operates in over 40 countries.
Business review and key performance indicators
The Group’s results are set out in the Consolidated statement 
of comprehensive income on page 25 and are explained in the 
Financial review on pages 12 and 13. A detailed review of the 
business, its results and future direction is included in the 
Chief Executive Officer’s statement on pages 5 to 9.
Change of name
On 6 June 2014, the Company changed its name from Ergomed 
Clinical Research Limited to Ergomed plc.
Capital structure
The Group is primarily financed through equity provided by its 
shareholders and cash generated from its profitable 
operations.
Dividends
The Directors do not recommend the payment of a dividend 
(2013: £nil).
Directors
The Directors of the Company are as follows:
Rolf Stahel (appointed 18 April 2014)
Peter George (appointed 20 May 2014)
Chris Collins (appointed 14 July 2014)
Miroslav Reljanovic
Neil Clark
At 31 December 2014, the Directors had the following 
beneficial interests in the Company’s shares:
Number of 
shares
Percentage 
of total 
issued 
share 
capital
Miroslav Reljanovic 21,190,257 73.7%
Neil Clark 91,912 0.3%
Rolf Stahel 125,000 0.4%
Peter George 31,250 0.1%
Christopher Collins 31,250 0.1%
Biographical details of the Directors are given on page 16.
Directors’ interests
The interests of Directors in the shares and options of the 
Company are given above and in the Directors’ remuneration 
report on pages 20 and 21.
Apart from the acquisition of PrimeVigilance, none of the 
Directors had a material interest at any time during the year in 
any contract of significance with the Group other than a service 
contract or an arm’s length commercial contract. See note 32 
for all Related party transactions. Information regarding 
Directors’ service contracts is given on page 20 within the 
Directors’ remuneration report.
Share capital
On 14 July 2014, 6,875,000 ordinary shares of 1 pence each 
were issued via a placing at a price of 160 pence per ordinary 
share. A further 1,875,000 ordinary shares of 1 pence each 
were issued as part consideration for the acquisition of 
PrimeVigilance Limited.
As at 31 December 2014, the issued share capital of the 
Company was:
Number of Nominal ordinary value 1 pence shares issued and 
fully paid up – 28,750,000 
The closing market price of the Company’s ordinary shares at 
close of business on 31 December 2014 was 152.5 pence.
The maximum share price during the period from 15 July 2014, 
being the date of admission, to 31 December 2014 was 162.5 
pence and the minimum price was 139.5 pence per share.
Auditor
Each of the persons who is a Director at the date of approval of 
this annual report confirms that:
• so far as the Director is aware, there is no relevant audit 
information of which the Company’s auditor is unaware; and
• the Director has taken all the steps that he ought to have 
taken as a Director to make himself aware of any relevant 
audit information and to establish that the Company’s 
auditor is aware of that information.
This confirmation is given and should be interpreted in 
accordance with the provisions of S418 of the Companies  
Act 2006.
Approved by the Board of Directors and signed on behalf of  
the Board.
N Clark
Director 
18 May 2015 18 Ergomed plc Annual Report 2014
www.ergomedplc.com
Corporate governance statement
Corporate Governance
The Company is listed on the Alternative Investment Market 
(AIM) and is not required to comply with the provisions of the 
UK Corporate Governance Code 2010 (2010 Code), as set out in 
the Financial Services Authority Listing Rules. However, the 
Directors recognise the importance of sound corporate 
governance and intend to comply with the Corporate 
Governance Guidelines, to the extent appropriate for a 
company of its nature and size. The Corporate Governance 
Guidelines were devised by the QCA, in consultation with a 
number of significant institutional small company investors, as 
an alternative corporate governance code applicable to AIM 
companies. An alternative code was proposed because the 
QCA considers the Corporate Governance Code to be 
inappropriate to many AIM companies. The Corporate 
Governance Guidelines state that ‘‘The purpose of good 
corporate governance is to ensure that the company is 
managed in an efficient, effective and entrepreneurial manner 
for the benefit of all shareholders over the longer term.’’
The Board comprises a Chairman, two executive directors and 
two non-executive directors. The Board meets regularly to 
consider strategy, performance and the framework of internal 
controls. To enable the Board to discharge its duties, the 
Directors receive appropriate and timely information. Briefing 
papers are distributed to the Directors in advance of Board 
meetings. The Directors have access to the advice and services 
of the Company Secretary and the Chief Financial Officer, who 
is responsible for ensuring that the Board procedures are 
followed and that applicable rules and regulations are 
complied with. In addition, procedures are in place to enable 
the Directors to obtain independent professional advice in the 
furtherance of their duties, if necessary, at the Company’s 
expense.
Board committees
The Company has Audit and Risk, Nomination, AIM Compliance 
and Remuneration Committees. The Audit and Risk Committee 
has Christopher Collins as Chairman, and has primary 
responsibility for monitoring the quality of internal controls, 
ensuring that the financial performance of the Company is 
properly measured and reported on and reviewing reports 
from the Company’s auditors relating to the Company’s 
accounting and internal controls, in all cases having due regard 
to the interests of shareholders. The Audit and Risk Committee 
meets at least twice a year. Peter George is the other member 
of the Audit and Risk Committee. The Nomination Committee 
has Rolf Stahel as Chairman, and identifies and nominates for 
the approval of the Board, candidates to fill board vacancies as 
and when they arise. The Nomination Committee meets at 
least twice a year. Miroslav Reljanovic, Peter George, 
Christopher Collins and Neil Clark are the other members of 
the Nomination Committee. The Remuneration Committee has 
Peter George as Chairman, and reviews the performance of 
the executive directors and determine their terms and 
conditions of service, including their remuneration and the 
grant of options, having due regard to the interests of 
Shareholders. The Remuneration Committee meets at least 
twice a year. Christopher Collins and Rolf Stahel are the other 
members of the Remuneration Committee.
The Company has established an AIM Compliance Committee 
to ensure that the Company is complying with the AIM Rules. In 
addition, the committee assesses the Company’s Corporate 
Governance obligations every year. The AIM compliance and 
corporate governance committee is chaired by Christopher 
Collins and its other member is Peter George.
The Directors understand the importance of complying with 
the AIM Rules relating to Directors’ dealings and have 
established a share dealing code which is appropriate for an 
AIM listed company.
Internal control and risk management
The Board acknowledges its responsibility for safeguarding 
the shareholders’ investments and the Group’s assets. In 
applying this principle, the Board recognises that it has overall 
responsibility for ensuring that the Group maintains a system 
of internal control that provides it with reasonable assurance 
regarding effective and efficient operations, internal financial 
control and compliance with laws and regulations. The system 
of internal control is designed to manage rather than eliminate 
the risk of failure to achieve business objectives, and can only 
provide reasonable and not absolute assurance against 
material misstatement or loss.
Through the Audit Committee, the Directors have reviewed the 
effectiveness of the internal controls. Since admission to AIM 
in July 2014, management is continuing to invest significant 
time in further developing the Group’s internal control 
environment. The key features of the internal control system 
are described below: 
• control procedures and environment – the Group has an 
organisational structure with clearly drawn lines of 
accountability and authority. Employees are required to 
follow well-defined internal procedures and policies 
appropriate to the business and their position within the 
business and management promotes the highest levels of 
professionalism and ethical standards;
• identification and evaluation of risks – the Group employs 
Executive Directors and senior management with the 
appropriate knowledge and experience required for a 
medical and scientific research group. Identification and 
evaluation of risk is a continuous process running in parallel 
with the significant organic growth of the Group;
• financial information – the Group prepares detailed budgets 
and working capital forecasts annually. These are based 
upon the strategy of the Group and are approved by the 
Board. Detailed management accounts and working capital 
re-forecasts are reviewed at least quarterly for each Board 
meeting, with any variances from budget investigated  19 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
thoroughly and a summary provided to the Board. Annual 
Reports, Preliminary Statements and Half-year Reports 
prepared by the Group are reviewed by the Audit Committee 
prior to approval by the Board;
• monitoring – the Board monitors the activities of the Group 
through the supply of reports from various areas of the 
business as contained in the Board papers. The Executive 
Committee performs a more detailed review, taking 
corrective action if required.
The Board, through the Audit Committee, reviews the 
effectiveness of the systems of internal control. Given the 
Group’s relative small size, the Board does not consider it 
either necessary or practical at present to have its own internal 
audit function. The Board continues to monitor the requirement 
to have an internal audit function.
Communication with shareholders
The Board attaches great importance to communication with 
both institutional and private shareholders. Regular 
communication is maintained with all shareholders through 
Company announcements, the Annual Report and Accounts, 
Preliminary Statements and Half-year Report. The Directors 
seek to build on a mutual understanding of objectives between 
the Company and its shareholders, especially considering the 
long term nature of the business. Institutional shareholders 
are in contact with the Directors through presentations and 
meetings to discuss issues and to give feedback regularly 
throughout the year. With private shareholders this is not 
always practical. The Board, therefore, intends to use the 
Company’s Annual General Meeting as the opportunity to meet 
private shareholders who are encouraged to attend, after 
which the Chief Executive Officer will give a presentation on the 
activities of the Group. Following the presentation there will be 
an opportunity to ask questions of Directors on a formal and 
informal basis and to discuss development of the business.
The Company operates a website at www.ergomedplc.com. 
The website contains details of the Group and its activities, 
regulatory announcements and Company announcements, 
Annual Reports and Half-year Reports, and the Terms of 
Reference of the Audit and Remuneration Committees.
Going concern
As disclosed in note 1 to the consolidated financial statements, 
having made relevant and appropriate enquiries, including 
consideration of the Company and Group current resources 
and working capital forecasts, the Directors have a reasonable 
expectation that, at the time of approving the financial 
statements, the Company has adequate resources to continue 
in operational existence for at least the next twelve months. 
Accordingly, the Board continues to adopt the going concern 
basis in preparing the financial statements. 20 Ergomed plc Annual Report 2014
www.ergomedplc.com
Directors’ remuneration report 
(Unaudited)
Ergomed has elected voluntarily to prepare an unaudited 
Directors’ remuneration report as set out below.
Remuneration policy overview
The aim of the remuneration policy is to encourage and reward 
superior performance by the Executive Directors and senior 
management, with performance being measured by reference 
to the achievement of corporate goals, strong financial 
performance and the delivery of value to shareholders.
The policy is designed to offer rewards that:
• enable the Group to attract and retain the management 
talent it needs to ensure its success;
• incentivise the achievement of the Group’s strategy and the 
delivery of sustainable long term performance of the Group 
by the executives; and
• have flexibility to accommodate the changing needs of the 
Group as it grows and its strategy evolves.
Remuneration levels are benchmarked against a subset of 
companies in the UK life sciences and biotechnology sectors 
with the aim of achieving the following:
• Base salary between average and upper quartile
• Performance-based bonus between average and  
upper quartile
• Share incentives industry average
• Total compensation between average and upper quartile
The Remuneration Committee intends to establish a policy that 
enables the Group to retain and motivate the Executive 
Directors and senior management appropriately while still 
maintaining a strong “pay-for-performance” culture within the 
Group. The remuneration policy is reviewed by the 
Remuneration Committee on an annual basis to ensure that it 
is in line with the Group’s objectives and shareholders’ 
interests.
Executive Directors
Miroslav Reljanovic has a service agreement with Ergomed plc 
dated 14 July 2014, with continuous employment from 28 
September 2009. His appointment is terminable on six months’ 
notice by himself and twelve months by the Company.
Neil Clark has a service agreement with Ergomed plc dated 14 
July 2014, with continuous employment from January 2009. His 
appointment is terminable on six months’ notice by himself and 
twelve months by the Company.
Non-Executive Directors
The Non-Executive Directors have entered into letters of 
appointment with the Company, with the Board determining 
any fees paid.
The Non-Executive Directors do not participate in the Group’s 
pension, bonus or option schemes. Rolf Stahel’s appointment is 
terminable on three months’ notice by either party. The other 
two Non-Executive appointments are terminable on one 
month’s notice by either party.
Remuneration
The Executive Directors, Miroslav Reljanovic and Neil Clark, 
are entitled to receive base salary, travel allowance, employer 
pension contributions, share options and a discretionary 
performance-related bonus.
Salary
Base salaries are reviewed annually and effective from the 
beginning of January. The Remuneration Committee seeks to 
assess the market competitiveness of pay primarily in terms of 
total remuneration, with less emphasis on base salary.
Bonuses
The timing and amount of bonuses are decided by the 
Remuneration Committee with reference to the individual’s 
performance and contribution to the Group. The maximum 
bonus that can be earned by an Executive Director is 75% of 
base salary.
Pensions
The Group does not operate a Group pension scheme. The 
Group pays an employer pension contribution of 10% of base 
salary to personal pension schemes established by the 
Executive Directors. 21 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Directors’ remuneration
The Directors received the following remuneration during the year:
Name of Director
Fees & 
Salary 
£000s
Benefits 
£000s
Annual 
Bonus 
£000s
Pension 
£000s
Total 
2014 
£000s
Total 
2013 
£000s
Miroslav Reljanovic 112 – 40 – 152 –
Neil Clark
1
189 2 40 19 250 180
Rolf Stahel
2,3
135 – – – 135 –
Peter George
3
20 – – – 20 –
Chris Collins
3
20 – – – 20 –
1. Neil Clark receives private medical insurance as a benefit.
2. The remuneration of Rolf Stahel includes consultancy fees of £98,000 paid to Chesyl Pharma Limited.
3. Rolf Stahel, Peter George and Chris Collins were not directors of the Company in 2013.
Share options
The Company issues share options to the Directors and employees to reward performance, to encourage loyalty and to enable 
valued employees to share in the success of the Company.
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire Ordinary shares in the 
Company granted to or held by the Directors.
Prior to the IPO Ergomed had established an Unapproved Executive Share Option 2007 Scheme and the Rolf Stahel Option 
Agreement. A new share option scheme, the “Ergomed plc Long Term Incentive Plan”, was established immediately following the 
Company’s IPO in July 2014.
Options granted as at 31 December 2014
Name of Director Date of grant
Number of Ordinary 
shares under option
Exercise 
price per 
Ordinary 
share
Exercise 
period from
Exercise 
period to Name of scheme
Neil Clark 31/12/2009 1,000,000 £0.01 31/12/2009 31/12/2019
Unapproved 
Share Option 
Scheme 2007
Rolf Stahel 18/4/2014 1,260,000 £1.60 18/4/2014 17/4/2024
Stahel Option 
Agreement
No options held by the Directors were exercised or lapsed during the year. 22 Ergomed plc Annual Report 2014
www.ergomedplc.com
Directors’ responsibilities statement
The Directors are responsible for preparing the Annual report 
and the financial statements in accordance with applicable law 
and regulations. Company law requires the Directors to 
prepare Group and Company financial statements for each 
financial year. The Directors are required by the AIM Rules of 
the London Stock Exchange to prepare Group financial 
statements in accordance with International Financial 
Reporting Standards (“IFRS”) as adopted by the European 
Union (“EU”) and have elected under company law to prepare 
the Company financial statements in accordance with IFRS as 
adopted by the EU.
The financial statements are required by law and IFRS adopted 
by the EU to present fairly the financial position of the Group 
and the Company and the financial performance of the Group. 
The Companies Act 2006 provides in relation to such financial 
statements that references in the relevant part of that Act to 
financial statements giving a true and fair view are references 
to their achieving a fair presentation.
Under company law the Directors must not approve the 
financial statements unless they are satisfied that they give a 
true and fair view of the state of affairs of the Group and the 
Company and of the profit or loss of the Group for that period. 
In preparing each of the Group and Company financial 
statements, the Directors are required to:
• select suitable accounting policies and then apply them 
consistently;
• make judgements and estimates that are reasonable and 
prudent;
• present information, including accounting policies, in a 
manner that provides relevant, reliable, comparable and 
understandable information;
• state whether they have been prepared in accordance with 
applicable IFRS as adopted by the EU; and
• prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Group and the 
Company will continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Group’s and 
the Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Group and the 
Company and enable them to ensure that the financial 
statements comply with the Companies Act 2006. They are also 
responsible for safeguarding the assets of the Group and the 
Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities. The 
Directors are responsible for the maintenance and integrity of 
the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the 
relevant financial reporting framework, give a true and fair 
view of the assets, liabilities, financial position and profit or 
loss of the Company and the undertakings included in the 
consolidation taken as a whole;
• the Strategic report includes a fair view of the development 
and performance of the business and the position of the 
Company and undertakings included in the consolidation 
taken as a whole, together with a description of the principal 
risks and uncertainties that they face; and
• the Annual Report and financial statements, taken as a 
whole, are fair, balanced and understandable and provide 
information necessary for shareholders to assess the 
Company’s performance, business model and strategy.
This responsibility statement was approved by the Board of 
Directors on 18 May 2015 and is signed on its behalf by
N Clark
By order of the Board 23 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Independent auditor’s report
To the members of Ergomed plc
We have audited the financial statements of Ergomed plc 
(formerly Ergomed Clinical Research Limited) for the year 
ended 31 December 2014 which comprise the Consolidated 
income statement, the Consolidated statement of 
comprehensive income, the Consolidated and parent company 
balance sheets, the Consolidated and parent company 
statements of changes in equity, the Consolidated and parent 
company cash flow statements and the related notes 1 to 51.
The financial reporting framework that has been applied in the 
preparation of the group financial statements is applicable law 
and International Financial Reporting Standards (IFRSs) as 
adopted by the European Union, and as regards the parent 
company financial statements, as applied in accordance with 
the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a 
body, in accordance with Chapter 3 of Part 16 of the Companies 
Act 2006. Our audit work has been undertaken so that we 
might state to the Company’s members those matters we are 
required to state to them in an auditors’ report and for no other 
purpose. To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other than the 
Company and the Company’s members as a body, for our audit 
work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities 
Statement, the Directors are responsible for preparation of the 
financial statements and for being satisfied that they give a true 
and fair view. Our responsibility is to audit and express an 
opinion on the financial statements in accordance with 
applicable law and International Standards on Auditing (UK and 
Ireland). These standards require us to comply with the 
Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free 
from material misstatement, whether caused by fraud or error. 
This includes an assessment of: whether the accounting 
policies are appropriate to the Group’s and the parent 
company’s circumstances and have been consistently applied 
and adequately disclosed; the reasonableness of significant 
accounting estimates made by the Directors; and the overall 
presentation of the financial statements. In addition, we read 
all the financial and non-financial information in the Annual 
Report to identify any material inconsistencies with the audited 
financial statements and to identify any information that is 
apparently materially incorrect based on, or materially 
inconsistent with, the knowledge acquired by us in the course 
of performing the audit. If we become aware of any apparent 
material misstatements or inconsistencies we consider the 
implications for our report.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state 
of the group’s and the parent company’s affairs as at 31 
December 2014 and of the group’s profit for the year then 
ended;
• the group financial statements have been properly prepared 
in accordance with IFRSs as adopted by the European Union;
• the parent company financial statements have been 
properly prepared in accordance with IFRSs as adopted by 
the European Union; and
• the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and 
Directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial 
statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
• adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have not 
been received from branches not visited by us; or
• the parent company financial statements are not in 
agreement with the accounting records and returns; or,
• certain disclosures of Directors’ remuneration specified by 
law are not made; or
• we have not received all the information and explanations 
we require for our audit.
Matthew Hall
FCA, (Senior Statutory Auditor)
for and on behalf of Deloitte LLP 
Chartered Accountants
Statutory Auditor  
18 May 2015
City House
126-130 Hills Road
Cambridge
CB2 1RY 24 Ergomed plc Annual Report 2014
www.ergomedplc.com
Consolidated income statement
For the year ended 31 December 2014
Notes
2014 
£000s
2013 
£000s
REVENUE 3, 4 21,155 15,147
Cost of sales (15,385) (10,146)
Gross profit 5,770 5,001
Administrative expenses (3,677) (3,234)
Other operating income 54 9
Amortisation of acquired revalued intangible assets 14 (446) –
Share-based payment charge 26 (338) –
Exceptional items 7 (584) –
OPERATING PROFIT 779 1,776
Investment revenues 8 – 4
Finance costs 9 (2) (2)
PROFIT BEFORE TAXATION 777 1,778
Taxation 11 (199) (232)
PROFIT FOR THE YEAR 5 578 1,546
EARNINGS PER SHARE
Basic 12 2.4p 7.7p 
Diluted 12 2.3p 7.4p
All activities in the current and prior period relate to continuing operations.
The notes on pages 29 to 53 form an integral part of these financial statements. 25 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Consolidated statement of comprehensive income
For the year ended 31 December 2014
2014 
£000s
2013 
£000s
Profit for the year 578 1,546
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations (212) 8
Other comprehensive income for the year net of tax (212) 8
Total comprehensive income for the year 366 1,554 26 Ergomed plc Annual Report 2014
www.ergomedplc.com
Consolidated balance sheet
As at 31 December 2014
Note
2014 
£000s
2013 
£000s
Non current assets
Goodwill 13 7,282 1,332
Other intangible assets 14 2,927 –
Property, plant and equipment 15 185 148
Investments 17 39 – 
Deferred tax asset 18 323 2 
10,756 1,482
Current assets
Trade and other receivables 19 6,343 3,283
Cash and cash equivalents 20 4,576 1,950
10,919 5,233
Total assets 21,675 6,715
Current liabilities
Borrowings 21 (7) (29)
Trade and other payables 22 (5,010) (4,405)
Deferred revenue (594) (210)
Current tax liability (144) (156)
Total current liabilities (5,755) (4,800)
Net current assets 5,164 433
Non current liabilities
Borrowings 21 (6) (8)
Deferred tax liability 18 (575) –
Total liabilities (6,336) (4,808)
Net assets 15,339 1,907
Equity 
Share capital 23 288 200
Share premium account 24 12,342 –
Share-based payment reserve 25 362 24
Translation reserve 25 (293) (81)
Retained earnings 2,640 1,764
Total equity 15,339 1,907
The notes on pages 29 to 53 form an integral part of these financial statements.
Approved by the Board of Directors and authorised for issue on 18 May 2015.
N Clark
Director
Company Registration No. 04081094 27 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Consolidated statement of changes in equity
For the year ended 31 December 2014
Share 
capital 
£000s
Share 
premium 
account 
£000s
Share-
based 
payment 
reserve 
£000s
Translation 
reserve 
£000s
Retained 
earnings 
£000s
Total 
£000s
Balance at 31 December 2012 200 – 24 (89) 218 353
Profit for the year – – – – 1,546 1,546
Other comprehensive income for the year – – – 8 – 8
Total comprehensive income for the year – – – 8 1,546 1,554
Balance at 31 December 2013 200 – 24 (81) 1,764 1,907
Share issues during the year (net of expenses) 88 12,342 – – – 12,430
Options granted during the year – – 338 – – 338
Deferred tax credit taken directly to equity – – – – 298 298
Profit for the year – – – – 578 578
Other comprehensive income for the year – – – (212) – (212)
Total comprehensive income for the year – – – (212) 578 366
Balance at 31 December 2014 288 12,342 362 (293) 2,640 15,339 28 Ergomed plc Annual Report 2014
www.ergomedplc.com
Consolidated cash flow statement
For the year ended 31 December 2014
Note
2014 
£000s
2013 
£000s
Cash flows from operating activities
Profit before taxation 777 1,778
Adjustment for:
Amortisation and depreciation 518 63
Gain on disposal of fixed assets (5) (15)
Share-based payment charge 338 –
Exchange adjustments (208) 8
Exceptional items 584 –
Finance income – (5)
Finance expenses 2 2
Operating cash flow before changes in working capital and provisions 2,006 1,831
(Increase)/decrease in trade and other receivables (1,993) 618
Increase/(decrease) in trade and other payables 954 (978)
Cash generated from operations 967 1,471
Taxation paid (430) (93)
Net cash inflow from operating activities 537 1,378
Investing activities
Finance income received – 5
Acquisition of property, plant and equipment (62) (70)
Acquisition of intangible assets (84) –
Investment in joint venture (40) –
Acquisition of subsidiaries including expenses of acquisition (6,846) 222
Receipts from sale of property, plant and equipment 11 38
Net cash (outflow)/inflow from investing activities (7,021) 195
Financing activities
Issue of new shares 11,000 –
Expenses of fundraising (1,869) –
Finance expense paid (2) (2)
Increase in borrowings 11 –
Repayment of borrowings (30) (66)
Net cash inflow/(outflow) from financing activities 9,110 (68)
Net increase in cash and cash equivalents 2,626 1,505
Cash and cash equivalents at start of the year 1,950 445
Cash and cash equivalents at end of year 20 4,576 1,950 29 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Notes to the consolidated financial statements
For the year ended 31 December 2014
1 Accounting policies
Ergomed plc and its wholly owned subsidiaries provide a full range of clinical monitoring services. This includes providing consultancy 
services as well as organising and monitoring the performance of clinical trials. The Group has a world wide presence with operations in 
the UK, Poland, Germany, Bosnia, Denmark, Croatia, Serbia, Russia, the United Arab Emirates and the USA. Ergomed plc is a company 
incorporated and domiciled in the UK.
The Group financial statements were authorised for issue by the Board of Directors on 18 May 2015.
Basis of accounting
Consolidated financial statements
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and the Companies 
Act 2006. The financial statements have also been prepared in accordance with IFRSs adopted by the European Union and therefore the 
Group financial statements comply with Article of the EU IAS Regulation.
The financial statements have also been prepared in accordance with IFRSs adopted by the European Union and therefore the Group 
financial statements comply with Article 4 of the EU IAS regulation.
The financial statements have been prepared on the historical cost basis. The principal accounting policies are set out below.
Parent company financial statements
The Company financial statements have been produced in accordance with International Financial Reporting Standards, the Companies 
Act 2006 and under the historical cost convention.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its 
subsidiaries) made up to 31 December each year. Control is achieved when the Company:
• has the power over the investee;
• is exposed, or has rights, to variable return from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more 
of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the 
voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers 
all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, 
including:
• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant 
activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control 
of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in the Consolidated income 
statement from the date the Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company. Total comprehensive 
income of the subsidiaries is attributed to the owners of the Company.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transitions between the members of the Group 
are eliminated on consolidation.
When the Group loses control of a subsidiary, the gain or loss on disposal recognised in profit or loss is calculated as the difference 
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous 
carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All amounts 
previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed 
of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as 
specified/permitted by applicable IFRS). The fair value of any investment retained in the former subsidiary at the date when control is lost 
is regarded as the fair value on initial recognition for subsequent accounting under IAS 39 Financial Instruments: Recognition and 
Measurement or, when applicable, the costs on initial recognition of an investment in an associate or jointly controlled entity. 30 Ergomed plc Annual Report 2014
www.ergomedplc.com
Going concern
The financial statements have been prepared on the going concern basis, which assumes that the Group will have sufficient funds to 
continue in operational existence for the foreseeable future, being a period of no less than 12 months from the date of signing of the 
financial statements. The Directors have reviewed a cash flow forecast (“the Forecast”) for the period ending 31 December 2016. The 
Forecast represents the Directors’ best estimate of the Group’s future performance and necessarily includes a number of assumptions, 
including the level of revenues, which are subject to inherent uncertainties. However, the Forecast demonstrates that the Directors have 
a reasonable expectation that the Group will be able to meet its liabilities as they fall due, for a period of at least 12 months from the date 
of approval of these financial statements.
On the basis of the above factors and, having made appropriate enquiries, the Directors have a reasonable expectation that the Company 
and Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt 
the going concern basis in preparing these financial statements.
Compliance with accounting standards
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in 
these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
IFRS 9 Financial Instruments
IFRS 15 Revenue from Contracts with Customers
IAS 16 and IAS 38 (amendments) Clarification of Acceptable Methods of Depreciation and Amortisation
IAS 27 (amendments) Equity Method in Separate Financial Statements
IFRS 10 and IAS 28 (amendments) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Annual Improvements to IFRSs:
2010-2012
Amendments to: IFRS2: Share-based Payments, IFRS 3 Business Combinations, IFRS 8 Operating 
Segments, IFRS 13 Fair Value Measurement, IAS 16 Property, Plant and Equipment, IAS 24 Related 
Party Disclosures and IAS 38 Intangible Assets.
Annual Improvements to  
IFRSs: 2012-2014 Cycle
Amendments to: IFRS 7 Financial Instruments: Disclosures, IAS 19 Employee Benefits and IAS 34 
Interim Financial Reporting.
The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the 
Group in future periods, except that IFRS 9 will impact both the measurement and disclosures of financial instruments and IFRS 15 may 
have an impact on revenue recognition and related disclosures. Beyond the information above, it is not practicable to provide a reasonable 
estimate of the effect of IFRS 9 and IFRS 15 until a detailed review has been completed.
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost less depreciation less any provision for impairment. Depreciation is provided on assets 
at rates calculated to write off the cost, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold improvements 2.5% straight line
Motor vehicles 8.33-50% straight line
Fixtures and fittings 10-50% straight line
Business combinations
Acquisition of companies including those under common control are accounted for in accordance with the principles of IFRS3, as the 
Directors consider it reflects the economic substance of transactions.
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred in a business 
combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the 
Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the Group in exchange for 
control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition 
date, except that:
• deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised and measured in 
accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively; and
• assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non current Assets Held for Sale and 
Discontinued Operations are measured in accordance with that Standard.
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
1 Accounting policies continued 31 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the 
acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date 
amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of 
the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is 
recognised immediately in profit or loss as a bargain purchase gain.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the 
Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during 
the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and 
circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date.
Goodwill
Goodwill arising in a business combination is recognised as an asset at the date that control is acquired (the acquisition date). Goodwill is 
measured as the excess of the fair value of the sum of the consideration transferred, the amount of any non-controlling interest in the 
acquiree and the fair value of the acquirer’s previously held equity interest (if any) in the entity over the net of the acquisition-date 
amounts of the identifiable assets acquired and the liabilities assumed.
Goodwill is not amortised but is reviewed for impairment at least annually. An impairment loss recognised for goodwill is not reversed in 
a subsequent period.
Investments
Investments are stated at cost less provision for impairment in value.
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated 
impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives as follows:
Software 20-30% straight line
The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in 
estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried 
at cost less accumulated impairment losses.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at 
the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated 
amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately, as follows.
Customer contract 20% straight line
Customer relationships 20% straight line
Brand 13.3% straight line
Impairment of tangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication 
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to 
determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other 
assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and 
consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they 
are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
An intangible asset with an indefinite useful life is tested for impairment at least annually and whenever there is an indication that the 
asset may be impaired.
The recoverable amount is the higher of the fair value less costs to sell, and the value in use. In assessing value in use, the estimated 
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1 Accounting policies continued 32 Ergomed plc Annual Report 2014
www.ergomedplc.com
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of 
the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, 
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the 
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through 
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial 
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or 
loss are recognised immediately in profit or loss.
Financial assets
The Company classifies its financial assets in the following categories:
• at fair value through profit or loss (“FVTPL ”)
• loans and receivables
• available-for-sale financial assets (“AFS”)
• held-to-maturity investments
The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its 
financial assets at initial recognition and re -evaluates this designation at every reporting date.
Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit or loss at 
inception. A financial asset is classified in this category if it was acquired principally for the purpose of selling it in the short term or if so 
designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges. Financial 
instruments at fair value through profit and loss comprise of “derivative financial instruments”. Assets in this category are classified as 
current assets, if they are either held for trading or are expected to be realised within 12 months of the balance sheet date.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. 
They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as 
non  current assets. Loans and receivables comprise of “trade and other receivables” and “cash and cash equivalents” in the balance 
sheet.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance sheet date. Financial assets are 
impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial 
asset, the estimated future cash flows of the investment have been affected.
For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the fair value of the security below its 
cost is considered to be objective evidence of impairment.
For all other financial assets, including redeemable notes classified as AFS and finance lease receivables, objective evidence of 
impairment could include:
• significant financial difficulty of the issuer or counterparty; or
• default or delinquency in interest or principal payments; or
• it becoming probable that the borrower will enter bankruptcy or financial re-organisation.
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in 
addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the 
Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit 
period of 60 days, as well as observable changes in national or local economic conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment is the differences between the asset’s carrying amount and 
the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
1 Accounting policies continued 33 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade 
receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered 
uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against 
the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.
Financial liabilities and equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual 
arrangement.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity 
instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit 
or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
Financial liabilities
Financial liabilities are classified as either financial liabilities ‘at FVTPL ’ or ‘other financial liabilities’.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense 
recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over 
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life 
of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short term highly liquid investments that are readily 
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services 
provided in the normal course of business, net of discounts and estimated credit notes.
Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract based on time spent. 
Revenue is recognised when it is probable that economic benefits will flow to the Company.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
Operating profit
Operating profit is stated before investment income, finance costs and tax.
Taxation
The tax expense represents the sum of tax currently payable and deferred tax.
Taxable profit differs from net profit as reported in the income statement because it excludes items of income and expenditure that are 
taxable or deductible in other periods and it further excludes items that are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance 
sheet liability method. Deferred tax liabilities are recognised for all temporary differences and deferred tax assets are recognised to the 
extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets 
and liabilities are not recognised if the temporary differences arise from goodwill or from the initial recognition (other than in a business 
combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
1 Accounting policies continued 34 Ergomed plc Annual Report 2014
www.ergomedplc.com
Deferred tax is calculated at the tax rates that are enacted or substantively enacted at the reporting date.
Foreign currency translation
The functional currency of the Company is the Euro, and the presentational currency is UK Sterling, meeting the requirements of 
shareholders. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange 
ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All 
differences are taken to the income statement.
The results and financial position of all the group entities that have a functional currency different from the presentation currency are 
translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the reporting date;
• income and expenses for each income statement are translated on a monthly basis at average exchange rates (unless this average is 
not a reasonable approximation of the exchange rates at the dates of the transactions, in which case income and expense items are 
translated at the exchange rates at the dates of the transactions); and
• all resulting exchange differences are recognised directly in Other comprehensive income.
Pensions
The pension costs charged in the financial statements represent the contributions payable by the Company during the year in accordance 
with lAS 19.
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over their useful 
lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance 
element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net 
obligation outstanding in each period.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Share-based payments
The Company operates an equity settled share-based option scheme under which the entity receives services from employees in 
consideration for equity instruments (options) of the Company. The fair value of the employees’ services received in exchange for the 
grant of options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options 
granted, excluding the impact of any non-market service and performance vesting conditions. The total amount expensed is recognised 
over the vesting period, which is the period over which all the specified conditions are satisfied. At each balance sheet date, the entity 
revises its estimates of the number of options that are expected to vest based on the vesting conditions.
2. Critical accounting estimates and judgements
In the application of the Group’s accounting policies, which are described in note 1, the Directors are required to make judgements, 
estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The 
estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual 
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the 
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the 
revision affects both current and future periods.
The following areas are those in which the Directors have made critical judgements and estimates in the process of applying the Group’s 
accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Revenue recognition
The amount of revenue to be recognised is based on, inter alia, management’s estimate of the fair value of the consideration received or 
receivable, the stage of completion and of the point in time at which management considers that it becomes probable that economic 
benefits will flow to the entity (as the outcome is not always certain at the inception of a contract).
Impairment of goodwill
Under IFRS, goodwill is reviewed for impairment at least annually. Determining whether goodwill is impaired requires an estimation of 
the recoverable amount of the cash-generating units to which goodwill has been allocated. The calculation of the recoverable amount 
requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order 
to determine whether the recoverable amount is greater than the carrying value. The carrying amount of goodwill and any impairment 
loss is disclosed in note 13.
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
1 Accounting policies continued 35 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Bad debt provision
In determining the level of provisioning for bad debts, the Directors have considered the aging of trade receivables, and the payment 
history and financial position of debtors. They have made a provision of £200,000 against trade receivables (note 19).
Exceptional items
In accordance with the way the Board and the chief operating decision maker review the business, large, one-off exceptional costs are 
separately identified as shown in the financial statements. The types of costs included within the exceptional items line include acquisition 
costs in relation to PrimeVigilance, and costs related to the IPO which were not eligible to be taken to the share premium account. These 
are detailed in note 7.
Identification and valuation of acquired intangibles
In making judgements in relation to the identification, valuation and useful economic life of acquired intangibles, the Directors base their 
assessment on valuation reports prepared by external, expert third parties at the time of acquisition.
3. Revenue
An analysis of the Group’s revenue is as follows:
2014 
£000s
2013 
£000s
Provision of clinical research services 18,062 15,147
Provision of drug safety and medical information services 3,093 –
21,155 15,147
Other operating income 54 9
Investment revenues – 4
21,209 15,160
4. Operating segments
Products and services from which reportable segments derive their revenues
Information reported to the Group’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), for the purpose of 
resource allocation and assessment of segment performance is focussed on the Group operating as two business segments, being 
clinical research services (“CRS”) and drug safety and medical information services (“DS&MI”). All revenues arise from direct sales to 
customers. The results of the Group for the year ended 31 December 2013 are all attributable to clinical research services. The business 
segment DS&MI relates to the results of PrimeVigilance following its acquisition by the Company on 15 July 2014. The segment 
information reported below all relates to continuing operations.
Geographical information
The Group’s revenue from external customers by geographical location is detailed below:
Revenue from external customers
CRS 
£000s
DS&MI 
£000s
2014 
£000s
UK 2,744 1,097 3,841
Rest of Europe, Middle East and Africa 8,478 1,113 9,591
North America 5,856 855 6,711
Asia 984 – 984
Australia – 28 28
18,062 3,093 21,155
Revenue from external customers
CRS 
£000s
DS&MI 
£000s
2013 
£000s
UK 35 – 35
Rest of Europe, Middle East and Africa 8,019 – 8,019
North America 6,236 – 6,236
Asia 857 – 857
15,147 – 15,147
2. Critical accounting estimates and judgements continued 36 Ergomed plc Annual Report 2014
www.ergomedplc.com
Revenue
CRS
£000s
DS&MI
£000s
Eliminations
£000s
Consolidated
2014
£000s
Third party sales 18,062 3,093 – 21,155
Intersegment sales and recharges 38 – (38) –
Total revenue 18,100 3,093 (38) 21,155
CRS
£000s
DS&MI
£000s
Eliminations
£000s
Consolidated
2014
£000s
Segment result 1,667 480 – 2,147
Expenses in relation to IPO (299)
Expenses in relation to acquisition of PrimeVigilance (285)
Share-based payment charge (338)
Amortisation of acquired revalued intangible assets (446)
Operating profit 779
Finance costs (2)
Profit before tax 777
Tax (199)
Profit after tax 578
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in note 1. Segment profit 
represents the profit earned by each segment. This is the measure reported to the Group’s Chief Executive Officer for the purpose of 
resource allocation and assessment of segment performance.
Segment net assets
2014 
£000s
2013 
£000s
CRS 6,129 1,907
DS&MI 9,210 –
Consolidated total net assets 15,339 1,907
For the purposes of monitoring segment performance and allocating resources between segments, the Group’s Chief Executive Officer 
monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable segments. 
Goodwill has been allocated to reportable segments as described in note 13.
Other segment information
Depreciation and 
amortisation Additions to non current assets
2014 
£000s
2013 
£000s
2014 
£000s
2013 
£000s
CRS 322 63 51 70
DS&MI 197 – 95 –
519 63 146 70
Information about major customers
In 2014, the Group had three customers that contributed 10% or more to the Group’s revenue. Revenues of approximately £4,370,000, 
£2,982,000 and £2,673,000 were recognised from these customers respectively, all relating to the provision of clinical research services.
In 2013, the Group had three customers that contributed 10% or more to the Group’s revenue. Revenues of approximately £2,225,000, 
£2,273,000 and £3,026,000 were recognised from these customers respectively, all relating to the provision of clinical research services. 
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
4. Operating segments continued 37 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
5. Profit for the year
2014 
£000s
2013 
£000s
Profit for the year is stated after charging/(crediting):
Depreciation of property, plant and equipment - owned 66 58
Depreciation of property, plant and equipment - leased 5 5
Amortisation of intangible assets 2 –
Amortisation of acquired revalued intangible assets 446 –
Exchange (gain)/loss (76) 210
Gain on disposals of property, plant and equipment (5) (15)
Staff costs (note 10) 4,501 2,446
6. Auditor’s remuneration
The analysis of the auditor’s remuneration is as follows:
2014 
£000s
2013 
£000s
Fees payable to the Company’s auditor and their associates for the audit of the Company’s annual accounts 110 57
Fees payable to the Company’s auditor and their associates for other services to the Group
– The audit of the Company’s subsidiaries – 2
Total audit fees 110 59
– Interim review 30 –
– Taxation compliance services – 9
– Other taxation advisory services 47 –
– Corporate finance services 320 –
– Other services – 9
Total non-audit fees 397 18
Fees payable to Deloitte LLP (2013: Riches & Company) and their associates for non-audit services to the Company are not required to be 
disclosed because the consolidated financial statements are required to disclose such fees on a consolidated basis.
7. Exceptional items
2014 
£000s
2013 
£000s
Expenses in relation to IPO (note 24) 299 – 
Expenses in relation to acquisition of PrimeVigilance (note 28) 285 – 
584 –
In line with the way the Board and chief operating decision maker reviews the business, large one-off exceptional costs directly related to 
the IPO, which were not eligible to be taken to the Share premium account, and to the acquisition of PrimeVigilance are separately 
identified and shown as exceptional costs. 
8. Investment revenues
2014 
£000s
2013 
£000s
Loan interest from connected party – 3
Loan interest from employee – 1
– 4
9. Finance costs
2014 
£000s
2013 
£000s
Loan and other interest payable 2 2 38 Ergomed plc Annual Report 2014
www.ergomedplc.com
10. Employees
Number of employees
The average monthly number of persons employed by the Group (including Executive Directors and excluding Non-Executive Directors) 
during the year was:
2014 
Number
2013 
Number
Administration 21 20
Project staff 117 66
Management 10 2
Directors 2 2
150 90
Employment costs
2014 
£000s
2013 
£000s
Wages and salaries 3,977 2,146
Social security costs 472 234
Other pension costs 52 66
4,501 2,446
Disclosures relating to key management personnel are included within the Directors’ remuneration report on pages 20 to 21.
11. Taxation
2014 
£000s
2013 
£000s
Current tax
UK corporation tax charge for the year 109 152
Overseas corporation tax 147 71
Adjustment in respect of prior years (3) (8)
Current tax charge for the year 253 215
Deferred tax
Origination and reversal of timing differences (51) 16
Effect of changes in tax rates (3) 1
Total tax charge for the year 199 232
Under IAS 12 Income Taxes, the amount of tax benefit that can be recognised in the income statement is limited by reference to the IFRS 2 
share-based payment charge. The excess amount of tax benefit in respect of share options gives rise to a credit which has been 
recognised directly in equity, in addition to the amounts charged to the income statement and other comprehensive income, as follows:
2014 
£000s
2013 
£000s
Deferred tax
Change in estimated excess tax deductions related to share-based payments. (298) –
Total income tax credit recognised directly in equity (298) –
The standard rate of tax for the year, based on the UK standard rate of corporation tax, is 21.5% (2013: 23.25%). The actual tax charges for 
the years differ from the standard rate for the reasons set out in the following reconciliation.
Notes to the consolidated financial statements continued
For the year ended 31 December 2014 39 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
2014 
£000s
2013 
£000s
Profit on ordinary activities before taxation 777 1,778
Tax on profit on ordinary activities at blended standard rate of 21.5% (2013: 23.25%). 167 409
Non-deductible expenses 279 23
Additional allowable expenses (35) (85)
Timing differences arising in the year (77) –
Non-taxable income (138) –
Adjustments to previous periods (3) (8)
Effect of different tax rates of subsidiaries operating in other jurisdictions 1 (43) 
Difference due to change in rate of taxation (3) 1
Increase/(utilisation) of tax losses 25 (65)
Translation effect (17) –
Tax expense for the year 199 232
The Finance Act 2014, which provides for a reduction in the main rate of corporation tax from 21% to 20% effective from 1 April 2015, was 
substantively enacted on 12 July 2014. This rate reduction has been reflected in the calculation of deferred tax at the balance sheet date.
12. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
2014 
£000s
2013 
£000s
Earnings for the purposes of basic earnings per share being net profit attributable to owners of the Company 578 1,546
Effect of dilutive potential ordinary shares – –
Earnings for the purposes of diluted earnings per share 578 1,546
2014 
No.
2013 
No.
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 24,075,342 20,000,000
Effect of dilutive potential ordinary shares
Share options 993,600 941,176
Weighted average number of ordinary shares for the purposes of diluted earnings per share 25,068,942 20,941,176
13. Goodwill
£000s
Cost
At 1 January 2013 –
Additions 1,332
At 1 January 2014 1,332
Arising on acquisition of subsidiary (note 28) 6,827
Revaluation of provisional values in accordance with IFRS 3 (note 29) (877)
At 31 December 2014 7,282
Accumulated impairment losses
At 1 January 2013, 1 January 2014 and 31 December 2014 –
Net book value
At 31 December 2014 7,282
At 31 December 2013 1,332
The goodwill arising during the year ended 31 December 2013 relates to the acquisition of Ergomed Virtuoso Sarl on 30 September 2013. 
That valuation of goodwill was a preliminary assessment. During the year ended 31 December 2014, a valuation exercise was completed 
on Intangibles acquired as part of Ergomed Virtuoso Sarl, resulting in a revaluation of goodwill (note 29).
The goodwill arising during the year ended 31 December 2014 relates to the acquisition of PrimeVigilance Limited and its subsidiaries on 
15 July 2014 (note 28).
11. Taxation continued 40 Ergomed plc Annual Report 2014
www.ergomedplc.com
Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected to benefit 
from that business combination. Before recognition of impairment losses, the carrying amount of goodwill had been allocated as follows:
2014 
£000s
2013 
£000s
2012 
£000s
Clinical research services
Ergomed Virtuoso Sarl 455 1,332 –
Drug safety and medical information services
PrimeVigilance 6,827 – –
7,282 1,332 –
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. At 
31 December 2013, no impairment testing of the goodwill recognised on the balance sheet was carried out since this was a preliminary 
valuation of the goodwill arising from the acquisition of Ergomed Virtuoso Sarl in September 2013.
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use 
calculations are those regarding discount rates and growth rates.
Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and the 
risks specific to the CGUs. The growth rates are based on management’s estimates based on the Group’s planned organic and acquisitive 
expansion of its operations and broadened overall offering, and the increased demand for services. Profit margins included in the 
projections are based on industry standards.
The Group has conducted a sensitivity analysis on the impairment test of each of the CGUs’ carrying value.
The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next five years 
and extrapolates cash flows for the following five years based on a terminal growth rate of 2%. This rate does not exceed the average 
long term growth rate for the relevant markets.
The pre-tax rate used to discount the forecast cash flows from the Ergomed Virtuoso Sarl CGU of the clinical research services (CRS) 
segment is 20.7% and from the drug safety and medical information (DS&MI) segment is 13.6%.
14. Other intangible assets
Software 
£000s
Customer 
contract 
£000s
Customer 
relationships 
£000s
Brand 
£000s
Total 
£000s
Cost
At 1 January 2013 and 1 January 2014 – – – – –
Acquired with subsidiary (note 28) 280 – 1,480 460 2,220
Revaluation of provisional values in accordance with IFRS 3 (note 29) – 1,070 – – 1,070
Additions 84 – – – 84
Re-allocation from Property, plant & equipment 116 – – – 116
Exchange differences (8) – – – (8)
At 31 December 2014 472 1,070 1,480 460 3,482
Amortisation 
At 1 January 2013 and 1 January 2014 – – – – –
Charge for the year 2 – – – 2
Amortisation cost of revalued intangible assets – 267 148 31 446
Re-allocation from Property, plant & equipment 115 – – – 115
Exchange differences (8) – – – (8)
At 31 December 2014 109 267 148 31 555
Net book value
At 31 December 2014 363 803 1,332 429 2,927
At 31 December 2013 – – – – –
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
13. Goodwill continued 41 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
The re-allocation of Software from Property, plant and equipment during the year relates to software currently in use by the business 
that had been included as Property, plant and equipment (note 15) in prior periods.
The intangible assets acquired with subsidiary during the year relate to the acquisition of PrimeVigilance on 15 July 2014. The value for 
acquired intangible assets is based on a preliminary assessment of assets acquired (note 28).
The revaluation of acquired intangible assets during the year relates to the acquisition of Ergomed Virtuoso Sarl on 30 September 2013. 
The value for acquired assets reported for the year ended 31 December 2013 was based on a preliminary assessment of acquired assets. 
During the year ended 31 December 2014, a valuation exercise on intangible assets acquired was completed, resulting in a revaluation of 
intangible assets (note 29).
15. Property, plant and equipment
Leasehold 
improvements 
£000s
Fixtures 
and fittings 
£000s
Motor 
vehicles 
£000s
Computer 
equipment 
£000s
Total 
£000s
Cost
At 1 January 2013 53 78 93 399 623
Additions – 30 2 38 70
Disposals – (24) (51) (48) (123)
At 1 January 2014 53 84 44 389 570
Additions – 7 8 47 62
Acquired with subsidiary – 10 – 52 62
Re-allocation to Other intangible assets – – – (116) (116)
Re-allocation – (40) 38 2 –
Disposals (11) (6) (14) (12) (43)
Exchange differences (4) (4) (8) (16) (32)
At 31 December 2014 38 51 68 346 503
Depreciation 
At 1 January 2013 33 39 67 320 459
Charge for the year 3 12 3 45 63
Disposals – (7) (50) (43) (100)
At 1 January 2013 36 44 20 322 422
Charge for the year 4 7 8 52 71
Re-allocation to Other intangible assets – – – (115) (115)
Re-allocation – (14) 12 2 –
Disposals (11) (6) (9) (11) (37)
Exchange differences (3) (3) (3) (14) (23)
At 31 December 2014 26 28 28 236 318
Net book value
At 31 December 2014 12 23 40 110 185
At 31 December 2013 17 40 24 67 148
The re-allocation to Intangible assets during the year relates to Software that had been categorised as Property, plant and equipment in 
prior periods (note 14).
Included above are assets held under finance leases or hire purchase contracts as follows:
Motor 
vehicles 
£000s
Net book value
At 31 December 2014 33
At 31 December 2013 36
Depreciation charge for the year
Year ended 31 December 2014 5
Year ended 31 December 2013 5
14. Other intangible assets continued 42 Ergomed plc Annual Report 2014
www.ergomedplc.com
16. Subsidiaries
The Ergomed Group consists of a parent company, Ergomed plc, incorporated in the UK, and a number of subsidiaries held directly and 
indirectly by Ergomed plc which operate and are incorporated around the world. Note 39 to the parent company’s separate financial 
statements lists details of the material interests in subsidiaries.
Information about the composition of the Group at the end of the reporting period is as follows:
Principal activity
Place of incorporation 
and operation
Number of wholly owned 
subsidiaries
2014 2013
Clinical research services Germany 1 2
Clinical research services Poland 1 1
Clinical research services Serbia 1 1
Clinical research services USA 1 1
Clinical research services Croatia 1 1
Clinical research services Russia 1 1
Clinical research services Bosnia 1 1
Clinical research services Dubai 1 1
Clinical research services Switzerland 1 1
Drug safety and medical information services United Kingdom 1 –
Drug safety and medical information services Croatia 1 –
Drug safety and medical information services Poland 1 –
Dormant United Kingdom 1 1
17. Investments
Joint 
venture 
£000s
Cost
At 1 January 2013 and 1 January 2014 –
Additions 40
Translation movement (1)
At 31 December 2014 39
Provision for impairment
At 31 December 2013 and 31 December 2014 –
Net book value
At 31 December 2014 39
At 31 December 2013 –
Joint venture
On 22 July 2014, the Group invested £40,000 for a 50% holding in a joint venture in Saudi Arabia. The operation is yet to commence trading, 
and the asset is held at cost.
 
18. Deferred tax
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and 
prior reporting period.
Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the 
deferred tax balances (after offset) for financial reporting purposes:
Notes to the consolidated financial statements continued
For the year ended 31 December 2014 43 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Deferred tax assets
Tax losses 
£000s
Timing 
differences 
£000s
Total 
£000s
At 1 January 2013 19 – 19 
Charge to profit or loss (17) – (17) 
At 1 January 2014 2 – 2
(Charge)/credit to profit or loss (2) 25 23
Credit direct to equity – 298 298
At 31 December 2014 – 323 323
Deferred tax liabilities
ACAs 
£000s
Timing 
differences 
£000s
Total 
£000s
At 1 January 2013 and 1 January 2014 – – –
Acquired with subsidiary (25) (581) (606)
(Charge)/credit to profit or loss (53) 84 31
At 31 December 2014 (78) (497) (575)
2014 
£000s
2013 
£000s
Deferred tax assets 323 2
Deferred tax liabilities (575) – 
Net deferred tax (liabilities)/assets (252) 2
At 31 December 2014, the Group had unused tax losses of £435,000 (2013: £338,000) available for offset against future profits. A deferred 
tax asset has been recognised in respect of £nil (2013: £6,000) of such losses. No deferred tax asset has been recognised in respect of  
the remaining £558,000 (2013: £456,000) as it is not considered probable that that there will be future profits available. Included in 
unrecognised tax losses are losses of £106,000 (2013: £207,000) that will expire in 2026. Other losses may be carried forward indefinitely.
 
19. Trade and other receivables
2014 
£000s
2013 
£000s
Trade receivables 4,675 2,336
Amounts receivable from related parties 14 91
Other receivables 327 366
Prepayments 205 109
Accrued income 999 381
Corporation tax receivable 123 –
6,343 3,283
Included in trade receivables are the following amounts that are past due at the reporting date by the following periods.
2014 
£000s
2013 
£000s
Less than 30 days overdue 1,263 707
31 to 60 days overdue 85 155
61 to 90 days overdue 12 –
More than 90 days overdue 480 125
1,840 987
18. Deferred tax continued 44 Ergomed plc Annual Report 2014
www.ergomedplc.com
Movement in the provision for doubtful debts
2014 
£000s
2013 
£000s
Balance at the beginning of the year 13 –
Impairment losses recognised 187 13
Balance at the end of the year 200 13
The carrying value of trade receivables approximates to their fair value at the balance sheet date.
The carrying values of the Group’s trade and other receivables are uncovered. The Group has not pledged as security any of the amounts 
included in receivables.
20. Cash and cash equivalents
2014 
£000s
2013 
£000s
Cash at bank 4,576 1,950
  
The effective interest rate at the balance sheet date on cash at bank was 0.003% (2013: 0.005%).
The carrying amount of cash and cash equivalents approximates to their fair value at the balance sheet date and are denominated in the 
following currencies:
2014 
£000s
2013 
£000s
GBP 2,252 12
Euro 849 401
USD 794 595
Other 681 942
4,576 1,950
21. Borrowings
2014 2013
Capital 
£000s
Interest 
£000s
Capital 
£000s
Interest 
£000s
Secured borrowings at amortised cost
Within one year
 Bank loans – – 22 1
 Finance leases 7 1 7 1
Borrowings within one year 7 1 29 2
Between one and two years
Finance leases 3 – 6 –
3 – 6 –
Between two and five years
Finance leases 3 – 2 –
3 – 2 –
Borrowings greater than one year 6 – 8 –
Totals 13 1 37 2
Bank loans are secured on the assets and liabilities of the Company. Finance leases are secured on the assets to which they relate.
 
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
19. Trade and other receivables continued 45 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
22. Trade and other payables
2014 
£000s
2013 
£000s
Trade creditors 2,650 2,526
Amounts payable to related parties 12 1,148
Social security and other taxes 332 80
Other payables 275 96
Accruals 1,741 555
5,010 4,405
The carrying amount of the Group’s trade and other payables approximates to their fair value at the balance sheet date and are 
uncovered.
23. Share capital
2014 
No.
2013 
No.
Allotted, called up and fully paid
Ordinary shares of £0.01 each
Balance at 1 January 20,000,000 20,000,000
Shares issued during the year 8,750,000 –
Balance at 31 December 28,750,000 20,000,000
2014 
£000s
2013 
£000s
Allotted, called up and fully paid
Ordinary shares of £0.01 each
Balance at 1 January 200 200
Shares issued during the year 88 –
Balance at 31 December 288 200
On 14 July 2014, as part of the Initial Public Offering by the Company, 6,875,000 ordinary shares of £0.01 each (“Ordinary shares”) were 
issued at a price of £1.60 per share. A further 1,875,000 Ordinary shares were issued as part consideration for the acquisition of 
PrimeVigilance Limited (note 28).
 
24. Share premium account
Share 
premium 
account 
£000s
Balance at 31 December 2012 and 31 December 2013 –
Share issue during the year 13,912
Expenses of share issue during the year (1,570)
Balance at 31 December 2014 12,342
The share premium arising during the year relates to the issue of 6,875,000 Ordinary shares at a price of £1.60 per share on 14 July 2014 
as part of the IPO, and a further 1,875,000 Ordinary shares were issued as part consideration for the acquisition of PrimeVigilance Limited 
(note 28). Expenses of £1,570,000 relating to the issue of shares were deducted from the Share premium account. Additional expenses of 
£299,000 have been charged to the income statement as Exceptional items (note 7). 46 Ergomed plc Annual Report 2014
www.ergomedplc.com
25. Reserves
The movements in reserves are shown in the Consolidated statement of changes in equity.
Share-based payment reserve
The corresponding credit associated with the charge for share options (note 26) is recognised as a credit to the share-based payment 
reserve.
Translation reserve
The translation reserve records any exchange differences arising as a result of the translation of foreign currency equity balances and 
foreign currency non-monetary items.
26. Share-based payments
The Company operates three share option schemes:
• the Ergomed plc Long Term Incentive Plan
• the Unapproved Executive Share Option Scheme 2007
• an Unapproved Executive Share Option Agreement made with Rolf Stahel
Ergomed plc Long Term Incentive Plan
The Ergomed plc Long Term Incentive Plan allows for the grant of options to both executives and all other Group employees, which may 
or may not be subject to performance criteria. It further provides for any options granted under its terms to be options that qualify under 
the Enterprise Management Incentives legislation (‘‘qualifying EMI options’’), as well as options that do not qualify (‘‘Unapproved 
options’’).
Selected directors and employees of the Group may be granted options under the Long Term Incentive Plan at the discretion of the 
Company’s Board of Directors or a duly authorised committee thereof (the ‘‘Committee’’). Employees and directors will be eligible to 
participate in the Long Term Incentive Plan as follows:
i) EMI qualifying options can be granted to an employee or director of the Company (or a Group company) who commits at least 25 hours 
per week or, if less, at least 75% of his or her working time on the business of the Company (or Group company) and, at the grant date, 
does not either individually or together with his associates control more than 30% of the ordinary share capital of the Company.
ii) Unapproved options can be granted to any employee (including an executive director) of a Group company.
No options have been awarded under this scheme and no charge has been made to the income statement with respect to awards under 
this scheme.
Unapproved Executive Share Option Scheme 2007
The Unapproved Executive Share Option Scheme 2007 is an unapproved equity-settled share option scheme for the benefit of its 
employees. Grants are made at the discretion of the Board of Directors, or an authorised committee thereof.
Options are forfeited (even if already vested) if the employee ceases employment with the Company and can only be exercised upon a sale, 
listing or the passing of a resolution for the voluntary winding-up of the Company or making of an order for the compulsory winding up of 
the Company. The employee retains the options vested at the time of the cessation of the employee’s employment for a six month period. 
The movement on options in issue under these schemes is set out below:
2014 2013
Number of 
share options
Weighted 
average 
exercise price 
Number of 
share options
Weighted 
average 
exercise price 
Outstanding at the beginning and end of the year 1,000,000 0.01 1,000,000 0.01
Vested at the end of the year 1,000,000 1,000,000
Exercisable at the end of the year 1,000,000 –
Based on the calculation of the total fair value of the options granted, the Company recognised a total charge through the income 
statement of £nil related to equity-settled share-based payment transactions in the year ended 31 December 2014 (2013: £nil).
Notes to the consolidated financial statements continued
For the year ended 31 December 2014 47 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
At 31 December 2014, the following unexercised share options to acquire ordinary shares were outstanding:
Year of grant Exercise period
Exercise price  
per share
2014
No.
2013
No.
2009 1/1/2009 – 31/12/2019 £0.01 1,000,000 1,000,000
The weighted average remaining life was 5 years (2013: 6 years).
Unapproved Executive Share Option Agreement made with Rolf Stahel
On 18 April 2014, an award of share options was made to Rolf Stahel (Chairman) under a separate Option Agreement. The award 
comprised options over 1,260,000 ordinary shares. The exercise of the options is linked to the timing of the Admission which has given 
rise to an exercise price of £1.60 per share. The option becomes exercisable in respect of one thirty-sixth of the options one month from 
the date of the share option agreement and on the same date in each subsequent calendar month over one thirty-sixth of the options.
2014 2013
Number of 
share options
Weighted average exercise 
price 
Number of 
share options
Weighted average 
exercise price 
Outstanding at the beginning of the year – – – –
Granted during the year 1,260,000 1.60 – –
Outstanding at the end of the year 1,260,000 1.60 – –
Vested at the end of the year 280,000 –
Exercisable at the end of the year 280,000 –
Eight thirty-sixths of the total amount of options awarded have vested by 31 December 2014, representing 280,000 shares at an exercise 
price of £1.60. All unexercised options carry an exercise price of £1.60. The awards have a 10 year contractual life. At 31 December 2014, 
the awards therefore had a remaining contractual life of 9 years and 4 months.
The options were valued using a Black-Scholes option pricing model, using the following inputs:
• Fair Value: 47.79p per share option
• Share Price: £1.60
• Exercise Price: £1.60
• Volatility: 30%
• Expected Life: 5 years
• Expected Dividends: 0%
• Risk Free Rate: 1.91%
Volatility was based upon the historical volatility for a basket of comparable listed companies measured over a period commensurate 
with the expected life of the grant.
Based on the calculation of the total fair value of the options granted, the share-based remuneration expense in respect of equity settled 
schemes is an amount of £338,000 (2013: £nil). There are no outstanding liabilities.
Year of grant Exercise period
Exercise price  
per share
2014
No.
2013
No.
2014 18/4/2014 - 17/4/2024 £1.60 1,260,000 -
The weighted average remaining life was 9 years and 4 months (2013: nil years).
26. Share-based payments continued 48 Ergomed plc Annual Report 2014
www.ergomedplc.com
27. Financial instruments
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide 
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
Significant accounting policies
Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and 
the bases for recognition of income and expenses) for each class of financial asset, financial liability and equity instrument are disclosed 
in note 1.
Categories of financial instruments
31 December 2014
Loans and 
receivables 
£000s
Current 
financial 
liabilities at 
amortised 
cost 
£000s
Non current 
financial 
liabilities at 
amortised 
cost 
£000s
Carrying 
amount 
£000s
Fair value 
£000s
Financial assets
Trade receivables 4,675 – – 4,675 4,675
Accrued income 715 – – 715 715
Amounts receivable from related parties 14 – – 14 14
Other receivables 162 – – 162 162
Cash and cash equivalents 4,576 – – 4,576 4,576
10,142 – – 10,142 10,142
Financial liabilities
Finance leases – 7 6 13 13
Trade payables – 2,650 – 2,650 2,650
Amounts owed to related parties – 12 – 12 12
Other payables – 275 – 275 275
Accruals – 1,741 – 1,741 1,741
– 4,685 6 4,691 4,691
Categories of financial instruments
31 December 2013
Loans and 
receivables 
£000s
Current 
financial 
liabilities at 
amortised 
cost 
£000s
Non current 
financial 
liabilities at 
amortised 
cost 
£000s
Carrying 
amount 
£000s
Fair value 
£000s
Financial assets
Trade receivables 2,336 – – 2,336 2,336
Accrued income 381 – – 381 381
Amounts receivable from related parties 91 – – 91 91
Other receivables 130 – – 130 130
Cash and cash equivalents 1,950 – – 1,950 1,950
4,888 – – 4,888 4,888
Financial liabilities
Bank loans – 22 – 22 22
Finance leases – 7 8 15 15
Trade payables – 2,526 – 2,526 2,526
Amounts owed to related parties – 1,148 – 1,148 1,148
Other payables – 96 – 96 96
Accruals – 555 – 555 555
– 4,354 8 4,362 4,362
The Group’s financial assets held for managing liquidity risk, being loans and receivables, which are considered to be readily saleable or 
are expected to generate cash inflows to meet cash outflows on financial liabilities within 6 months.
Notes to the consolidated financial statements continued
For the year ended 31 December 2014 49 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Financial risk management objectives
The Group’s Finance function provides services to the business, monitors and manages the financial risks relating to the operations of 
the Group. These risks include market risk (including currency risk), credit risk, liquidity risk and cash flow interest rate risk.
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates (see 
below).
Foreign currency risk management
The Group undertakes transactions denominated in foreign currencies; consequently exposures to exchange rate fluctuations arise. 
Exchange rate exposures are managed by natural hedging in currency accounts, and the functional currency is the Euro. The carrying 
amounts of the Group’s financial assets and financial liabilities by currency at the reporting date are as follows:
Financial assets
2014 
£000s
2013 
£000s
GBP 3,195 23
Euro 2,336 1,812
USD 3,203 1,887
Other 1,408 1,166
10,142 4,888
Financial liabilities
2014 
£000s
2013 
£000s
GBP 625 237
Euro 3,389 3,365
USD 274 79
Other 403 681
4,691 4,362
Foreign currency sensitivity analysis
The Group is mainly exposed to the Euro currency and the US Dollar currency. However as the Euro is the functional currency their 
exposure is less sensitive.
The following table details the Group’s sensitivity to a 10% increase and decrease in Sterling against the relevant foreign currencies. 10% 
is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s 
assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign 
currency denominated monetary assets and liabilities and adjusts their translation at the period end for a 10% change in foreign currency 
rates. A positive number below indicates an increase in profit and other equity and a negative number indicates a decrease in profit and 
other equity.
2014
Strengthen 
+10% £000s
Weaken 
-10% £000s
Euro 95 (117)
USD (266) 325
Other (91) 112
(262) 320
2013
Strengthen 
+10% £000s
Weaken 
-10% £000s
Euro 141 (173)
USD (164) 201
Other (44) 54
(67) 82
27. Financial instruments continued 50 Ergomed plc Annual Report 2014
www.ergomedplc.com
Interest rate risk management
The Group is exposed to the interest rate risks associated with its holdings of cash and cash equivalents and short term deposits and 
finance leases payable.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which regularly monitors the Group’s short, 
medium and long term funding, and liquidity management requirements. The Group manages liquidity risk by maintaining adequate cash 
and cash equivalents and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial 
assets and liabilities.
The impact on profit and other comprehensive income due to interest rate exposure is not considered significant, and no interest rate 
sensitivity has been performed.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The 
Group has adopted a policy of only dealing with creditworthy counterparties. The Group assesses the creditworthiness of customers in 
advance of entering into any contract. During the life of a contract, the customer’s financial status is monitored as well as payment 
history. The Group does have some larger customer balances representing more than 15% of the trade receivables at a particular time, 
but these will be large profitable pharmaceutical companies with good credit ratings or smaller biotech companies with supportive 
shareholders and a history of successful fund-raising, and this is not considered indicative of an increased credit risk. Credit information 
is supplied by independent rating agencies where appropriate and if available. Alternatively the Group uses other publicly available 
financial information and its own trading records to rate its major customers.
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is 
performed on the financial condition of accounts receivable.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international 
credit-rating agencies.
There has been no history of bad debts as the majority of its sales are to multinational pharmaceutical companies and as a consequence 
the Directors do not consider that the Group has a credit risk.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Group’s 
maximum exposure to credit risk as no collateral or other credit enhancements are held.
Liquidity and interest risk tables
The Group has no significant long term financial liabilities.
Fair value estimation
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair 
value of long term trade receivables and payables is estimated by discounting the future contractual cash flows at the current market 
interest rate for the underlying currency of the transaction.
Fair value measurements
The Group did not have any financial instruments that are measured subsequent to initial recognition at fair value. An analysis of the fair 
value hierarchy has therefore not been presented.
Notes to the consolidated financial statements continued
For the year ended 31 December 2014
27. Financial instruments continued 51 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
28. Acquisition of subsidiary – PrimeVigilance Limited
On 15 July 2014, Ergomed plc acquired 100% of the issued share capital of PrimeVigilance Limited, a leading provider of drug safety and 
medical information services, obtaining control. PrimeVigilance Limited was acquired in order to broaden the range of healthcare 
services provided by the business and to thereby increase the profitability of Ergomed plc.
Management has engaged a third party valuation expert to assist in valuing the assets acquired, and has set out the provisional fair 
values allocated to the business below. Management will work with the valuation expert to finalise these provisional values, and any 
subsequent changes to the values within the measurement period will be shown as adjustments to the provisional fair values. No such 
adjustments have yet been identified.
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below.
Book 
values 
£000s
Fair value 
adjustments 
£000s
Provisional 
fair values 
£000s
Property, plant and equipment 62 – 62
Intangible assets 280 1,940 2,220
Total non current assets 342 1,940 2,282
Trade and other debtors 598 – 598
Accrued income 347 – 347
Cash and equivalents 402 – 402
Current assets 1,347 – 1,347
Trade and other creditors (941) – (941)
Deferred revenue (101) – (101)
Deferred tax (26) (388) (414)
Financial liabilities (1,068) (388) (1,456)
Total identifiable net assets 621 1,552 2,173
Goodwill 8,379 (1,552) 6,827
Total consideration 9,000 – 9,000
Satisfied by:
Cash 6,000 – 6,000
Shares 3,000 – 3,000
Total consideration transferred 9,000 – 9,000
Net cash outflow arising on acquisition
Cash consideration 6,000 – 6,000
Less: cash and cash equivalent balances acquired (402) – (402)
5,598 – 5,598
The provisional fair value of the financial assets includes receivables with a fair value of £598,000 and a gross contractual value of 
£598,000. The best estimate at acquisition date of the contractual cash flows not to be collected is £nil.
Goodwill is valued at £6,827,000 which arises from the excess of purchase price of £9,000,000 over net assets of £2,173,000. None of the 
goodwill is expected to be deductible for income tax purposes.
The fair value of the Ordinary shares issued as part of the consideration paid for PrimeVigilance Limited (£3,000,000) was determined on 
the basis of the subscription price of Ordinary shares issued as part of the IPO, upon which the acquisition was contingent.
PrimeVigilance contributed £3,093,000 revenue and £352,000 to the Group’s profit for the period between the date of acquisition and the 
balance sheet date.
If the acquisition of PrimeVigilance had been completed on the first day of the financial year, Group revenues for the period would have 
been £2,494,000 higher and Group profit would have been £295,000 higher.
Expenses incurred in relation to the acquisition of £285,000 have been charged as Exceptional items in the income statement (note 7). 52 Ergomed plc Annual Report 2014
www.ergomedplc.com
29. Acquisition of subsidiary – Ergomed Virtuoso Sarl
On 30 September 2013, the Group acquired 100% of the issued share capital of Ergomed Virtuoso Sarl, obtaining control. Ergomed 
Virtuoso Sarl is a clinical research company. Ergomed Virtuoso Sarl was acquired in order to obtain a profitable clinical research 
business.
A provisional valuation was used for the purposes of assessing the transaction for the statutory accounts for the year ended 31 December 
2013. A subsequent valuation exercise performed in accordance with IFRS 3 during the measurement period has revalued the identifiable 
assets acquired and liabilities assumed, and the amounts recognised are as set out in the table below.
Provisional 
valuation 
£000s
Fair value 
adjustments 
£000s
Final 
valuation 
£000s
Intangible assets – 1,070 1,070
Total non current assets – 1,070 1,070
Trade and other debtors 180 – 180
Prepayments and accrued income 120 120
Cash and equivalents 891 – 891
Current assets 1,191 – 1,191
Trade and other creditors (852) – (852)
Deferred tax liability – (193) (193)
Financial liabilities (852) (193) (1,045)
Total identifiable net assets 339 877 1,216
Goodwill 1,332 (877) 455
Total consideration 1,671 – 1,671
Satisfied by:
Cash 1,671 – 1,671
Total consideration transferred 1,671 – 1,671
Net cash outflow arising on acquisition
Cash consideration 1,671 – 1,671
Less: cash and cash equivalent balances acquired (891) – (891)
780 – 780
The fair value of the financial assets includes receivables with a fair value of £180,000 and a gross contractual value of £180,000. The best 
estimate at acquisition date of the contractual cash flows not to be collected is £nil.
Goodwill is valued at £455,000 which arises from the excess of purchase price of £1,671,000 over net assets of £1,216,000. None of the 
goodwill is expected to be deductible for income tax purposes.
Ergomed Virtuoso Sarl contributed £458,000 to revenue and £49,000 to the Group’s profit for the period between the date of acquisition 
and 31 December 2013.
If the acquisition of Ergomed Virtuoso Sarl had been completed on the first day of the financial year ended 31 December 2013, Group 
revenues for the period would have been £2,302,000 higher and Group profit would have been £7,000 higher.
30. Financial commitments
At 31 December 2014 the Group was committed to making the following payments under non-cancellable operating leases which fall due 
as follows:
Group
Land and buildings Other
2014 
£000s
2013 
£000s
2014 
£000s
2013 
£000s
Within one year 389 275 67 59
Between two and five years 641 629 95 67
Over five years – – 1 –
1,030 904 163 126
Notes to the consolidated financial statements continued
For the year ended 31 December 2014 53 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
31. Pension costs
The Group makes contributions to defined contribution personal pension schemes of the employees. The pension cost represents 
contributions payable by the Group to the schemes and amounted to £52,000 (2013: £62,000). Contributions payable to the schemes at 31 
December 2014 were £98,000 (2013: £3,000).
32. Related party transactions
PrimeVigilance Limited, a company of which Miroslav Reljanovic and Neil Clark were shareholders and directors, was acquired by the 
Company for consideration comprising cash and shares on 15 July 2014 (note 28). Dividends payable by PrimeVigilance Limited, which 
were accrued at the time of acquisition, were subsequently paid to former shareholders by PrimeVigilance Limited, in the following 
period when it was a subsidiary of the Company. Miroslav Reljanovic, who is a Director and shareholder of the Company, was paid 
£3,809,000 in cash and issued 1,190,257 ordinary shares of 1 pence each in the Company in consideration for his shares in PrimeVigilance 
Limited, and was paid an accrued dividend from PrimeVigilance Limited of £194,250. Neil Clark, who is a Director of the Company, was 
paid £294,000 in cash and issued 91,912 ordinary shares of 1 pence each in the Company for his shares in PrimeVigilance Limited, and 
was paid an accrued dividend from PrimeVigilance Limited of £15,000.
Ergomed d.o.o., a company registered in Croatia, is under the control of Miroslav Reljanovic, who is a Director and shareholder of the 
Company. During the year the Company was charged £619,000 (2013: £699,000) by Ergomed d.o.o. in respect of clinical research costs, 
other administration and telephone charges. At 31 December 2014 a balance of £14,000 was owed by the Company to Ergomed d.o.o. in 
respect of these costs (2013: £133,000). The Company also invoiced Ergomed d.o.o for loan interest of £nil (2013: £4,000) in relation to a 
loan from the Company to Ergomed d.o.o.. The loan was repaid during the year ended 31 December 2013.
Until 15 July 2014 the Company was under the same control as PrimeVigilance Limited as Miroslav Reljanovic was the majority 
shareholder in both companies. PrimeVigilance is a company registered in the UK but was not part of the same group. At 15 July 2014 
PrimeVigilance Limited was acquired, and is now wholly owned, by the Company. During the period from 1 January 2014 to 15 July 2014, 
the Company charged £41,000 (2013: £193,000) to PrimeVigilance Limited in respect of administration and employee costs incurred by the 
Company on behalf of PrimeVigilance Limited.
At 31 December 2014, the related party receivables in relation to PrimeVigilance Limited were £nil (2013: £91,000). At 31 December 2014, 
the related party payables in relation to PrimeVigilance Limited were £nil (2013: £9,000).
Until 30 September 2013 the Company was under the same control as Ergomed Virtuoso Sarl, a company registered in Switzerland; but 
not part of the same group. At 30 September 2013 Ergomed Virtuoso Sarl was acquired, and is now wholly owned, by the Company. 
During the 9 months ended 30 September 2013 the Company invoiced Ergomed Virtuoso Sarl £267,000 for project management, business 
development and general management services. The related party receivables in relation to Ergomed Virtuoso Sarl were £nil.
The remuneration of the Directors, who are the key management personnel of the Company is set out in the Directors’ remuneration 
report on page 21. Other creditors include a balance of £nil (2013: £1,004,000), principally consisting of the amount due on the purchase of 
Ergomed Virtuoso Sarl due to Miroslav Reljanovic, who is a Director and shareholder of the Company.
All transactions with related parties take place on an arm’s length basis.
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation 
and are not disclosed in this note.
33. Subsequent events
There were no significant subsequent events.
  54 Ergomed plc Annual Report 2014
www.ergomedplc.com
Note
2014 
£000s
2013 
£000s
Non current assets
Property, plant and equipment 38 8 13
Investments 39 10,569 1,782 
Deferred tax asset 40 304 – 
10,881 1,795
Current assets
Trade and other receivables 41 4,886 3,561
Cash and cash equivalents 42 3,430 953
8,316 4,514
Total assets 19,197 6,309
Current liabilities
Borrowings 43 – (22)
Trade and other payables 44 (5,138) (4,650)
Deferred revenue (586) (210)
Current tax liability – (152)
Total current liabilities (5,724) (5,034)
Net current assets/(liabilities) 2,592 (520)
Non current liabilities
Deferred tax liability 40 (1) –
Total liabilities (5,725) (5,034)
Net assets 13,472 1,275
Equity 
Share capital 45 288 200
Share premium account 46 12,342 –
Share-based payment reserve 47 362 24
Translation reserve 47 (235) 93
Retained earnings 715 958
Total equity 13,472 1,275
The notes on pages 57 to 66 form an integral part of these financial statements.
Approved by the Board of Directors and authorised for issue on 18 May 2015.
N Clark
Director
Company Registration No. 04081094 
Company balance sheet
As at 31 December 2014 55 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Share 
capital 
£000s
Share 
premium 
account 
£000s
Share–
based 
payment 
reserve 
£000s
Translation 
reserve 
£000s
Retained 
earnings 
£000s
Total 
£000s
Balance at 31 December 2012 200 – 24 70 585 879
Profit for the year – – – – 373 373
Other comprehensive income for the year – – – 23 – 23
Total comprehensive income for the year – – – 23 373 396
Balance at 31 December 2013 200 – 24 93 958 1,275
Share issues during the year (net of expenses) 88 12,342 – – – 12,430
Options granted during the year – – 338 – – 338
Deferred tax credit taken directly to equity – – – – 298 298
Loss for the year – – – – (541) (541)
Other comprehensive income for the year – – – (328) – (328)
Total comprehensive income for the year – – – (328) (541) (869)
Balance at 31 December 2014 288 12,342 362 (235) 715 13,472
 
 
Company statement of changes in equity
For the year ended 31 December 2014 56 Ergomed plc Annual Report 2014
www.ergomedplc.com
Note
2014 
£000s
2013 
£000s
Cash flows from operating activities
(Loss)/profit before taxation (520) 517
Adjustment for:
Amortisation and depreciation 5 5
Loss on disposal of fixed assets 2 –
Share-based payment charge 338 –
Exchange adjustments (75) 23
Exceptional items 499 –
Finance income – (4)
Finance expenses 2 2
Operating cash flow before changes in working capital and provisions 251 543
(Increase)/decrease in trade and other receivables (1,202) 1,345
Increase/(decrease) in trade and other payables 1,827 (520)
Cash generated from operations 876 1,368
Taxation paid (300) (39)
Net cash inflow from operating activities 576 1,329
Investing activities
Finance income received – 4
Acquisition of property, plant and equipment (3) (4)
Investment in joint venture (40) –
Acquisition of subsidiaries including expenses of acquisition (7,248) (669)
Receipts from disposal of investments – 61
Net cash outflow from investing activities (7,291) (608)
Financing activities
Issue of new shares 11,000 –
Expenses of fundraising (1,784) –
Finance expense paid (2) (2)
Repayment of borrowings (22) (67)
Net cash inflow/(outflow) from financing activities 9,192 (69)
Net increase in cash and cash equivalents 2,477 652
Cash and cash equivalents at start of the year 953 301
Cash and cash equivalents at end of year 42 3,430 953
 
Company cash flow statement
For the year ended 31 December 2014 57 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
34. Accounting policies
The separate financial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, the 
separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) adopted by the 
European Union.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as those 
set out in note 1 to the consolidated financial statements.
35. Critical accounting estimates and judgements
In the application of the Company’s accounting policies, which are described in note 34, the Directors are required to make judgements, 
estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The 
estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual 
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the 
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the 
revision affects both current and future periods.
The following area is one in which the Directors have made critical judgements and estimates in the process of applying the Company’s 
accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Revenue recognition
The amount of revenue to be recognised is based on, inter alia, management’s estimate of the fair value of the consideration received or 
receivable, the stage of completion and of the point in time at which management considers that it becomes probable that economic 
benefits will flow to the entity (as the outcome is not always certain at the inception of a contract).
Bad debt provision
In determining the level of provisioning for bad debts, the Directors have considered the aging of trade receivables, and the payment 
history and financial position of debtors. They have made a provision of £200,000 against trade receivables in note 41.
36. (Loss)/profit of the parent company
As permitted by Section 408 of the Companies Act 2006 the Statement of comprehensive income of the parent company is not presented 
as part of these financial statements. The parent company’s loss after tax for the financial year was £541,000 (2013: profit of £373,000).
37. Intangible assets
Software 
£000s
Cost
At 1 January 2013 and 1 January 2014 –
Re-allocation from Property, plant and equipment 88
At 31 December 2014 88
Depreciation 
At 1 January 2013 and 1 January 2014 –
Re-allocation from Property, plant and equipment 88
At 31 December 2014 88
Net book value
At 31 December 2014 –
At 31 December 2013 –
Intangible assets represent software currently in use by the business. The re-allocation from Property, plant and equipment during the 
year relates to Software that had been included as Property, plant and equipment in prior periods (note 38).
 
Notes to the company financial statements
For the year ended 31 December 2014 58 Ergomed plc Annual Report 2014
www.ergomedplc.com
38. Property, plant and equipment
Fixtures and 
fittings £000s
Motor 
vehicles 
£000s
Computer 
equipment 
£000s
Total 
£000s
Cost
At 1 January 2013 89 – 22 111
Additions – 2 2 4
At 1 January 2014 89 2 24 115
Re-allocation to Intangible assets (88) – – (88)
Additions – – 3 3
Disposals – (2) (4) (6)
At 31 December 2014 1 – 23 24
Depreciation 
At 1 January 2013 89 – 8 97
Charge for the year – 1 4 5
At 1 January 2014 89 1 12 102
Exchange differences – – 1 1
Re-allocation to Intangible assets (88) – – (88)
Disposals – (2) (2) (4)
Charge for the year – 1 4 5
At 31 December 2014 1 – 15 16
Net book value
At 31 December 2014 – – 8 8
At 31 December 2013 – 1 12 13
The re-allocation to Intangible assets during the year relates to Software that had been included as Property, plant and equipment in 
prior periods, and has been re-allocated to Intangible assets (note 37).
No assets in the above were held under finance leases or hire purchase contracts.
39. Investments
Shares in 
subsidiary 
undertakings 
£000s
Joint venture 
£000s
Total 
£000s
Cost
At 1 January 2013 172 – 172
Additions 1,671 – 1,671
Disposals (61) – (61)
At 1 January 2014 1,782 – 1,782
Additions 9,000 40 9,040
Translation movement (252) (1) (253)
At 31 December 2014 10,530 39 10,569
Provision for impairment
At 31 December 2013 and 31 December 2014 – – –
Net book value
At 31 December 2014 10,530 39 10,569
At 31 December 2013 1,782 – 1,782
Notes to the company financial statements continued
For the year ended 31 December 2014 59 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Subsidiary undertakings
The Company has direct interests in the following subsidiaries which are included in the consolidated financial statements:
Principal activity – clinical research services
Place of incorporation 
and operation Class Holding
Ergomed GmbH Germany Ordinary 100%
Ergomed Spolka z.o.o. Poland Ordinary 99%
Ergomed d.o.o Novi Sad Serbia Ordinary 100%
Ergomed Clinical Research Inc USA None issued 100%
Ergomed Istrazivanja Zagreb d.o.o. Croatia Ordinary 100%
Ergomed Clinical Research LLC Russia Ordinary 100%
Ergomed d.o.o. Bosnia Ordinary 100%
Ergomed Clinical Research FZ LLC Dubai Ordinary 100%
Ergomed Virtuoso Sarl Switzerland Ordinary 100%
   
Principal activity – drug safety and  
medical information services
Place of incorporation 
and operation Class Holding
PrimeVigilance Limited * United Kingdom Ordinary 100%
PrimeVigilance d.o.o.** Croatia Ordinary 100%
PrimeVigilance Spolka z.o.o.** Poland Ordinary 100%
Principal activity – dormant
Place of incorporation 
and operation Class Holding
Ergomed Clinical Research Limited (formerly “Ergomed Limited“) United Kingdom Ordinary 100%
* This company was acquired by the Company on 15 July 2014, (note 28).
** These companies are wholly owned subsidiaries of PrimeVigilance Limited.
There are no significant restrictions on the ability of the Group to access or use assets and settle liabilities.
Joint venture
On 22 July 2014, the Company invested £40,000 for a 50% holding in a joint venture in Saudi Arabia. The operation is yet to commence 
trading, and the asset is held at cost.
40. Deferred tax
The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon during the current 
and prior reporting period.
Deferred tax assets
Timing 
differences 
£000s
At 1 January 2013 and 1 January 2014 –
Credit to profit or loss 6
Credit direct to equity 298
At 31 December 2014 304
Deferred tax liabilities
Timing 
differences 
£000s
At 1 January 2013 and 1 January 2014 –
Charge to profit or loss (1)
At 31 December 2014 (1)
39. Investments continued 60 Ergomed plc Annual Report 2014
www.ergomedplc.com
Deferred tax assets and liabilities are offset where the Company has a legally enforceable right to do so. The following is the analysis of 
the deferred tax balances (after offset) for financial reporting purposes:
2014 
£000s
2013 
£000s
Deferred tax assets – Timing differences 304 –
Deferred tax liabilities – ACAs (1) –
Net deferred tax assets 303 –
41. Trade and other receivables
2014 
£000s
2013 
£000s
Trade receivables 2,741 2,199
Amounts receivable from related parties 14 91
Amounts receivable from Group companies 897 744
Other receivables 126 226
Prepayments 102 28
Accrued income 884 273
Corporation tax receivable 122 –
4,886 3,561
Included in trade receivables are the following amounts that are past due at the reporting date by the following periods.
2014 
£000s
2013 
£000s
Less than 30 days overdue 844 707
31 to 60 days overdue 66 155
61 to 90 days overdue 4 –
More than 90 days overdue 433 125
1,347 987
Movement in the provision for doubtful debts
2014 
£000s
2013 
£000s
Balance at the beginning of the year – –
Impairment losses recognised 200 –
Balance at the end of the year 200 –
The carrying value of the Company’s trade and other receivables are uncovered. The Company has not pledged as security any of the 
amounts included in receivables.
 
42. Cash and cash equivalents
2014 
£000s
2013 
£000s
Cash at bank 3,430 953
The carrying amount of cash and cash equivalents approximates to their fair values at the balance sheet date and are denominated in the 
following currencies:
2014 
£000s
2013 
£000s
GBP 1,946 12
Euro 809 382
USD 670 552
Other 5 7
3,430 953
Notes to the company financial statements continued
For the year ended 31 December 2014
40. Deferred tax continued 61 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
43. Borrowings
2014 
£000s
2013 
£000s
Secured borrowings at amortised cost
Within one year
Bank loans – 22
Bank loans are secured on the assets and liabilities of the Company.
44. Trade and other payables
2014 
£000s
2013 
£000s
Trade creditors 1,743 2,085
Amounts payable to related parties 5 1,148
Amounts payable to Group companies 1,867 1,001
Social security and other taxes 28 15
Other payables 39 6
Accruals 1,456 395
5,138 4,650
The carrying amount of the Company’s trade and other payables approximates to their fair value at the balance sheet date and are 
uncovered.
45. Share capital
2014 
No.
2013 
No.
Allotted, called up and fully paid
Ordinary shares of £0.01 each
Balance at 1 January 20,000,000 20,000,000
Shares issued during the year 8,750,000 –
Balance at 31 December 28,750,000 20,000,000
2014 
£000s
2013 
£000s
Allotted, called up and fully paid
Ordinary shares of £0.01 each
Balance at 1 January 200 200
Shares issued during the year 88 –
Balance at 31 December 288 200
On 14 July 2014, as part of the Initial Public Offering by the Company, 6,875,000 ordinary shares of £0.01 each (“Ordinary shares”) were 
issued at a price of £1.60 per share. A further 1,875,000 Ordinary shares were issued as part consideration for the acquisition of 
PrimeVigilance Limited (note 28). 62 Ergomed plc Annual Report 2014
www.ergomedplc.com
46. Share premium account
Share 
premium 
account 
£000s
Balance at 31 December 2012 and 31 December 2013 –
Share issue during the year 13,912
Expenses of share issue during the year (1,570)
Balance at 31 December 2014 12,342
The share premium arising during the year relates to the issue of 6,875,000 Ordinary shares at a price of £1.60 per share on 14 July 2014 
as part of the IPO, and a further 1,875,000 Ordinary shares were issued as part consideration for the acquisition of PrimeVigilance Limited 
(note 28). Expenses of £1,570,000 relating to the issue of shares were deducted from the Share premium account. Additional expenses of 
£299,000 have been charged to the Income Statement as Exceptional items (note 7).
47. Reserves
The movements in reserves are shown in the Company statement of changes in equity.
Share-based payment reserve
The corresponding credit associated with the charge for share options (note 48) is recognised as a credit to the share-based payment 
reserve.
Translation reserve
The translation reserve records any exchange differences arising as a result of the translation of foreign currency equity balances and 
foreign currency non-monetary items.
48. Share-based payments
The Company operates three share option schemes:
• the Ergomed plc Long Term Incentive Plan
• the Unapproved Executive Share Option Scheme 2007
• an Unapproved Executive Share Option Agreement made with Rolf Stahel
Ergomed plc Long Term Incentive Plan
The Ergomed plc Long Term Incentive Plan allows for the grant of options to both executives and all other Group employees, which may 
or may not be subject to performance criteria. It further provides for any options granted under its terms to be options that qualify under 
the Enterprise Management Incentives legislation (‘‘qualifying EMI options’’), as well as options that do not qualify (‘‘Unapproved 
options’’).
Selected directors and employees of the Group may be granted options under the Long Term Incentive Plan at the discretion of the 
Company’s Board of Directors or a duly authorised committee thereof (the ‘‘Committee’’). Employees and directors will be eligible to 
participate in the Long Term Incentive Plan as follows:
i) EMI qualifying options can be granted to an employee or director of the Company (or a Group company) who commits at least 25 hours 
per week or, if less, at least 75% of his or her working time on the business of the Company (or Group company) and, at the grant date, 
does not either individually or together with his associates control more than 30% of the ordinary share capital of the Company.
ii) Unapproved options can be granted to any employee (including an executive director) of a Group company.
No options have been awarded under this scheme and no charge has been made to the income statement with respect to awards under 
this scheme.
Unapproved Executive Share Option Scheme 2007
The Unapproved Executive Share Option Scheme 2007 is an unapproved equity-settled share option scheme for the benefit of its 
employees. Grants are made at the discretion of the Board of Directors, or an authorised committee thereof.
Options are forfeited (even if already vested) if the employee ceases employment with the Company and can only be exercised upon a sale, 
listing or the passing of a resolution for the voluntary winding-up of the Company or making of an order for the compulsory winding up of 
the Company. The employee retains the options vested at the time of the cessation of the employee’s employment for a six month period. 
The movement on options in issue under these schemes is set out below:
Notes to the company financial statements continued
For the year ended 31 December 2014 63 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
2014 2013
Number of 
share options
Weighted average  
exercise price 
Number of 
share options
Weighted average 
exercise price 
Outstanding at the beginning of the year 1,000,000 0.01 1,000,000 0.01
Vested at the end of the year 1,000,000 1,000,000
Exercisable at the end of the year 1,000,000 –
Based on the calculation of the total fair value of the options granted, the Company recognised a total charge through the income 
statement of £nil related to equity-settled share-based payment transactions in the year ended 31 December 2014 (2013: £nil).
At 31 December 2014, the following unexercised share options to acquire Ordinary shares were outstanding:
Year of grant
Exercise 
period
Exercise price 
per share
2014
No.
2013
No.
2009 1/1/2009 – 31/12/2019 £0.01 1,000,000 1,000,000
The weighted average remaining life was 5 years (2013: 6 years).
Unapproved Executive Share Option Agreement made with Rolf Stahel
On 18 April 2014, an award of share options was made to Rolf Stahel (Chairman) under a separate Option Agreement. The award 
comprised options over 1,260,000 Ordinary shares. The exercise of the options is linked to the timing of the Admission which has given 
rise to an exercise price of £1.60 per share. The option becomes exercisable in respect of one thirty-sixth of the options one month from 
the date of the share option agreement and on the same date in each subsequent calendar month over one thirty-sixth of the options.
2014 2013
Number of 
share options
Weighted average  
exercise price 
Number of 
share options
Weighted average 
exercise price 
Outstanding at the beginning of the year – – – –
Granted during the year 1,260,000 1.60 – –
Outstanding at the end of the year 1,260,000 1.60 – –
Vested at the end of the year 280,000 –
Exercisable at the end of the year 280,000 –
Eight thirty-sixths of the total amount of options awarded have vested by 31 December 2014, representing 280,000 shares at an exercise 
price £1.60. All unexercised options carry an exercise price of £1.60. The awards have a 10 year contractual life. At 31 December 2014, the 
awards therefore had a remaining contractual life of 9 years and 4 months.
The options were valued using a Black-Scholes option pricing model, using the following inputs:
• Fair Value: 47.79p per share option
• Share Price: £1.60
• Exercise Price: £1.60
• Volatility: 30%
• Expected Life: 5 years
• Expected Dividends: 0%
• Risk Free Rate: 1.91%
Volatility was based upon the historical volatility for a basket of comparable listed companies measured over a period commensurate 
with the expected life of the grant.
Based on the calculation of the total fair value of the options granted, the share-based remuneration expense in respect of equity settled 
schemes is an amount of £338,000 (2013: £nil). There are no outstanding liabilities.
Year of grant
Exercise 
period
Exercise price 
per share
2014
No.
2013
No.
2014 18/4/2014 - 17/4/2024 £1.60 1,260,000 –
The weighted average remaining life was 9 years and 4 months (2013: nil years).
48. Share-based payments continued 64 Ergomed plc Annual Report 2014
www.ergomedplc.com
49. Financial instruments
Capital risk management
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide 
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
Significant accounting policies
Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and 
the bases for recognition of income and expenses) for each class of financial asset, financial liability and equity instrument are disclosed 
in note 1.
Categories of financial instruments
31 December 2014
Loans and 
receivables 
£000s
Current 
financial 
liabilities at 
amortised 
cost 
£000s
Carrying 
amount 
£000s
Fair value 
£000s
Financial assets
Trade receivables 2,741 – 2,741 2,741
Accrued income 600 – 600 600
Amounts receivable from related parties 14 – 14 14
Amounts receivable from Group companies 897 – 897 897
Other receivables 19 – 19 19
Cash and cash equivalents 3,430 – 3,430 3,430
7,701 – 7,701 7,701
Financial liabilities
Trade payables – 1,743 1,743 1,743
Amounts owed to related parties – 5 5 5
Amounts owed to Group companies – 1,867 1,867 1,867
Other payables – 39 39 39
Accruals – 1,456 1,456 1,456
– 5,110 5,110 5,110
Categories of financial instruments
31 December 2013
Loans and 
receivables 
£000s
Current 
financial 
liabilities at 
amortised 
cost 
£000s
Carrying 
amount 
£000s
Fair value 
£000s
Financial assets
Trade receivables 2,199 – 2,199 2,199
Accrued income 273 – 273 273
Amounts receivable from related parties 91 – 91 91
Amounts receivable from Group companies 744 – 744 744
Other receivables 44 – 44 44
Cash and cash equivalents 953 – 953 953
4,304 – 4,304 4,304
Financial liabilities
Bank loans – 22 22 22
Trade payables – 2,085 2,085 2,085
Amounts owed to related parties – 1,148 1,148 1,148
Amounts owed to Group companies – 1,001 1,001 1,001
Other payables – 6 6 6
Accruals – 395 395 395
– 4,657 4,657 4,657
The Company’s financial assets held for managing liquidity risk, being loans and receivables, which are considered to be readily saleable 
or are expected to generate cash inflows to meet cash outflows on financial liabilities within 6 months.
Notes to the company financial statements continued
For the year ended 31 December 2014 65 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Financial risk management objectives
The Company’s Finance function provides services to the business, monitors and manages the financial risks relating to the operations of 
the Company. These risks include market risk (including currency risk), credit risk, liquidity risk and cash flow interest rate risk.
Market risk
The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates (see 
below).
Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently exposures to exchange rate fluctuations arise. 
Exchange rate exposures are managed by natural hedging in currency accounts, and the functional currency is the Euro. The carrying 
amounts of the Company’s financial assets and financial liabilities by currency at the reporting date are as follows:
Financial assets
2014 
£000s
2013 
£000s
GBP 2,226 23
Euro 2,721 2,184
USD 2,748 2,064
Other 6 33
7,701 4,304
Financial liabilities
2014 
£000s
2013 
£000s
GBP 128 248
Euro 4,638 4,203
USD 113 38
Other 231 168
5,110 4,657
Foreign currency sensitivity analysis
The Company is mainly exposed to the Euro currency and the US Dollar currency. However as the Euro is the functional currency their 
exposure is less sensitive.
The following table details the Company’s sensitivity to a 10% increase and decrease in Sterling against the relevant foreign currencies. 
10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents 
management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only 
outstanding foreign currency denominated monetary assets and liabilities and adjusts their translation at the period end for a 10% 
change in foreign currency rates. A positive number below indicates an increase in profit and other equity and a negative number 
indicates a decrease in profit and other equity.
2014
Strengthen 
+10%  
£000s
Weaken  
-10% 
£000s
Euro 174 (213)
USD (239) 293
Other 20 (25)
(45) 55
2013
Strengthen 
+10%  
£000s
Weaken 
-10%  
£000s
Euro 184 (224)
USD (184) 225
Other 12 (15)
12 (14)
49. Financial instruments continued 66 Ergomed plc Annual Report 2014
www.ergomedplc.com
Notes to the company financial statements continued
For the year ended 31 December 2014
Interest rate risk management
The Company is exposed to the interest rate risks associated with its holdings of cash and cash equivalents and short term deposits.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which regularly monitors the Company’s short, 
medium and long term funding, and liquidity management requirements. The Company manages liquidity risk by maintaining adequate 
cash and cash equivalents and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial 
assets and liabilities.
The impact on profit and other comprehensive income due to interest rate exposure is not considered significant, and no interest rate 
sensitivity has been performed.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The 
Company has adopted a policy of only dealing with creditworthy counterparties. The Company assesses the creditworthiness of 
customers in advance of entering into any contract. During the life of a contract, the customer’s financial status is monitored as well as 
payment history. The Company does have some larger customer balances representing more than 15% of the trade receivables at a 
particular time, but these will be large profitable pharmaceutical companies with good credit ratings or smaller biotech companies with 
supportive shareholders and a history of successful fund-raising, and this is not considered indicative of an increased credit risk. Credit 
information is supplied by independent rating agencies where appropriate and if available. Alternatively the Company uses other publicly 
available financial information and its own trading records to rate its major customers.
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is 
performed on the financial condition of accounts receivable.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international 
credit-rating agencies.
There has been no history of bad debts as the majority of its sales are to multinational pharmaceutical companies and as a consequence 
the Directors do not consider that the Company has a credit risk.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the 
Company’s maximum exposure to credit risk as no collateral or other credit enhancements are held.
Liquidity and interest risk tables
The Company has no significant long term financial liabilities.
Fair value estimation
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair 
value of long term trade receivables and payables is estimated by discounting the future contractual cash flows at the current market 
interest rate for the underlying currency of the transaction.
Fair value measurements
The Company did not have any financial instruments that are measured subsequent to initial recognition at fair value. An analysis of the 
fair value hierarchy has therefore not been presented.
50. Financial commitments
At 31 December 2014 the Company was committed to making the following payments under non-cancellable operating leases which fall 
due as follows:
Land and buildings Other
2014 
£000s
2013 
£000s
2014 
£000s
2013 
£000s
Within one year – 15 8 4
Between two and five years – – 12 6
– 15 20 10
49. Financial instruments continued 67 Ergomed plc Annual Report 2014
Strategic
Governance
Financial information
Pro forma financial information
Unaudited and unreviewed
51. Pension costs
The Company makes contributions to defined contribution personal pension schemes of the employees. The pension cost represents 
contributions payable by the Company to the schemes and amounted to £19,000 (2013: £62,000). Contributions payable to the schemes at 
31 December 2014 were £5,000 (2013: £3,000).
On 15 July 2014, Ergomed plc acquired the entire share capital of PrimeVigilance Limited. The following pro forma financial information 
combines the financial results of Ergomed plc and PrimeVigilance Limited prior to that date for illustrative purposes. The results of 
PrimeVigilance Limited for the year ended 31 December 2013 and the balance sheet as at 31 December 2013 are based on the audited 
financial statements of that company. The audit report on those accounts was unqualified, did not draw attention to any matters by way of 
emphasis and did not contain any statement under section 498(2) or (3) of the Companies Act 2006. In addition, the results of Ergomed plc 
presented in this pro forma financial information are adjusted to remove the profit margin charged by a related party in relation to 
services provided to Ergomed plc, as such services will be provided from internal resources in the period following the IPO. The Ergomed 
2014 results in this pro forma financial information are also adjusted for the non-recurring IPO costs of £0.6m, a non-cash share option 
based payment charge of £0.3m and increased amortisation charge of £0.4m associated with the intangible assets associated with the 
two acquisitions of Ergomed Virtuoso and PrimeVigilance.
Pro forma Consolidated income statement – 2014
2014 
£000s
Pre-acquisition 
results of 
PrimeVigilance 
£000s
Pro forma 
2014 
£000s
REVENUE 21,155 2,539 23,694
Cost of sales (15,245) (1,646) (16,891)
Gross profit 5,910 893 6,803
Administrative expenses (3,535) (543) (4,078)
Depreciation expense (72) (18) (90)
Other operating income 54 2 56
OPERATING PROFIT 2,357 334 2,691
Finance costs (2) – (2)
PROFIT BEFORE TAXATION 2,355 334 2,689
Taxation (330) (35) (365)
PROFIT FOR THE YEAR 2,025 299 2,324
EBITDA 2,429 352 2,781
The results of Ergomed plc are adjusted to remove the profit margin on services provided by a related party, exceptional costs arising 
from the IPO and acquisition of PrimeVigilance, share-based payment charge and amortisation of acquired revalued intangible assets.
Pro forma Consolidated Income statement – 2013
Year ended 31 December 2013
Adjusted 
Ergomed 
£000s
PrimeVigilance 
£000s
Pro forma 
£000s
REVENUE 15,147* 4,085 19,232*
Cost of sales (9,817) (2,328) (12,145)
Gross profit 5,330 1,757 7,087
Administrative expenses (3,082) (1,217) (4,299)
Depreciation expense (63) (23) (86)
Share options – (2) (2)
Other operating income 9 – 9
OPERATING PROFIT 2,194 515 2,709
Finance income 4 – 4
Finance costs (2) (1) (3)
PROFIT BEFORE TAXATION 2,196* 514 2,710
Taxation (287) (120) (407)
PROFIT FOR THE YEAR 1,909 394 2,303*
* The results of Ergomed plc are adjusted to remove the profit margin on services provided by a related party. The results for Ergomed for 2013 included a non-recurring 
milestone payment received from a co-development partner of £1.3m. 68 Ergomed plc Annual Report 2014
www.ergomedplc.com
Glossary
Adverse Reaction Information System (ARISg) a web-based adverse event software (developed by ARIS Global) that enables the 
collection, assessment and reporting of adverse event information to the global 
regulatory agencies
Approved Risk Evaluation and Mitigation  
Strategies (REMS)
the FDA requires a REM strategy from manufacturers to ensure that the benefits of a 
drug outweigh its risks
Backlog work contracted but yet to be completed
Clinical Research Organisation (CRO) a person or an organisation (commercial, academic, or other) contracted by the 
Sponsor to perform one or more of a Sponsor’s trial-related duties and functions
Food and Drug Administration (FDA) the United States regulatory authority charged with, among other responsibilities, 
granting new drug approvals
Medical Information Services the marketing authorisation holder must establish a scientific service in charge of 
information about the products being sold
Orphan Drug a pharmaceutical product that has been developed to treat a rare medical condition, 
which itself is known as an orphan disease
Pharmacovigilance (PV) science and activities relating to the detection, assessment, understanding and 
prevention of adverse effects or any other medicine-related problem
Qualified Person Pharmacovigilance (QPPV) as part of the pharmacovigilance system, the marketing authorisation holder shall 
have permanently and continuously at its disposal an appropriately qualified person 
responsible for pharmacovigilance in the European Union
Risk-Management Plan (RMP) a RMP includes information on a medicine’s safety profile, how its risks will be 
prevented or minimised in patients, plans for studies to build knowledge about the 
safety and efficacy of the drug, risk factors for side effects and measuring the 
effectiveness of risk-minimisation measures
Sponsor an individual, company, institution, or organisation which takes responsibility for the 
initiation, management, and/or financing of a clinical trial
Study Site Management (SSM) the Ergomed model of study site management which provides assistance to 
investigating physicians and site study co-ordinators with administrative and logistic 
aspects of the trial in order to maximise utilisation of resources
Study Physician Team (SPT) an Ergomed team engaged in feasibility, preparation and consultancy of those clinical 
studies that require medical consultancy support Advisors
Nominated Advisor and Broker
Stifel Nicolaus Europe Limited
150 Cheapside
London
EC2V 6ET
Financial PR
Hume Brophy Limited
One Fetter Lane
London
EC4A 1BR
Solicitors
Covington & Burling LLP
265 Strand
London
WC2R 1BH
Registrars
Share Registrars Limited
Suite 6, First Floor
9 Lion & Lamb Yard
Farnham
Surrey
GU9 7LL
Auditors
Deloitte LLP
City House
126-130 Hills Road
Cambridge
CB2 1RY
Please see below for details of the Company’s Nominated Advisor and other key advisors. Ergomed plc Annual Report 2014
Ergomed plc
The Surrey Research Park
26 Frederick Sanger Road
Guildford
Surrey 
GU2 7YD