Ergomed plc Annual Report and Accounts 2015
Ergomed plc
Annual Report and Accounts 2015
TRANSFORMING
DRUG DEVEL OPMENT
Ergomed plc
The Surrey Research Park
26 Frederick Sanger Road
Guildford
Surrey 
GU2 7YD 
www.ergomedplc.com Founded in 1999, Ergomed plc is a profitable UK-based 
company providing drug development and safety  
services to the pharmaceutical industry and has a  
growing portfolio of co-development partnerships.  
It operates in 54 countries.
Ergomed provides clinical development, trial management and 
pharmacovigilance services to over 100 clients, ranging from top 10 
pharmaceutical and generics companies to small and mid-sized drug 
development companies. Ergomed successfully manages clinical development 
from Phase I through to late phase post-marketing programmes.
Ergomed has wide therapeutic expertise with a particular focus in oncology, 
neurology and immunology and the development of orphan drugs. Ergomed’s 
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. This results in a closer 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 pharmaceutical  
and biotech companies. Here, Ergomed shares the risks and rewards of drug 
development, leveraging its expertise and services in return for carried interest  
in the drugs under development – a low risk investment model for potential  
high returns. For further information, visit ‘www.ergomedplc.com’.
Global pharmacovigilance and medical information services are provided 
through its Group company PrimeVigilance. For further information,  
visit ‘www.primevigilance.com’.
Strategic
01 Highlights 2015
02 About Ergomed
05 About Haemostatix
06 Chairman’s statement
07 Chief Executive Officer’s review
08 Strategic report
Governance
12 Board of Directors
14  Directors’ remuneration report 
(unaudited)
16  Corporate governance statement 
18 Directors’ report
Financial information
20 Independent auditor’s report
21 Consolidated income statement
22 Consolidated statement of comprehensive income
23 Consolidated balance sheet
24 Consolidated statement of changes in equity
25 Consolidated cash flow statement
26 Notes to the consolidated financial statements
53 Company balance sheet
54 Company statement of changes in equity
55 Company cash flow statement
56 Notes to the company financial statements
68 Pro forma financial information
69 Glossary 01
Ergomed plc Annual Report and Accounts 2015
Financial information Governance Strategic 
1 PrimeVigilance acquisition completed on 15 July 2014. Pro forma figures assume contribution for full year 2014 to enable comparison with 2015.
2013 2014 2015
40
20
30
10
0
30.2
21.2
15.1
2013 2014 2015
4
2
3
1
0
3.4
2.4
2.2
73%
27%
Highlights 2015
Financial highlights
 – Revenues up 43% to £30.2 million (2014: £21.2 million) 
–  Pro forma adjusted for PrimeVigilance
1
, revenues up  
27% (2014: £23.7 million)
 – Gross profit up 45% to £8.4 million (2014: £5.8 million)
 – Profit before tax up 167% to £2.1 million (2014: £0.8 million)
 – Cash and cash equivalents of £4.0 million with zero debt 
(2014: £4.6 million)
 – EBITDA (adjusted) up 39% to £3.4 million (2014: £2.4 million) 
–  P r o f o rm a adjusted for PrimeVigilance
1
, EBITDA (adjusted) 
up 22% (2014: £2.8 million)
 – Signed new contracts with an initial value of £28 million
Operating 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’)
 – Expanded presence in Asia with the opening of an office  
in Taipei, Taiwan as a regional hub
 – Acquired Sound Opinion, one of the UK’s leading medical 
information service providers 
 – Strengthened management team with appointment of  
Andrew Mackie as Chief Business Officer
 – Strong backlog of £59 million implying more than 85% of 
planned 2016 revenue already contracted at 1 January 2016
Post period end highlights
 – Management team further enhanced with the appointment of 
Stephen Stamp as Chief Financial Officer; Neil Clark promoted 
to Chief Executive Officer of PrimeVigilance
 – Acquisition of Haemostatix, a platform technology company 
focused on the development of innovative haemostats, based 
in BioCity Nottingham, in May 2016
2015 Revenue split
£30.2m
Revenue (£m)
EBITDA (adjusted) (£m)
 Clinical  
research  
services
 Pharmacovigilance  
and medical 
information services 02
Ergomed plc Annual Report and Accounts 2015
Ergomed oces
1
 
San Antonio
2
 
Guildford
3
 
Frankfurt
4
 
Geneva
5
 
Pisa
6
 
Krakow
7
 
Zagreb
8
 
Novi Sad
9
 
Sarajevo
10
 
Belgrade
11
 
Moscow 12
 
Riyadh 13
 
Dubai 14
 
Kiev
15
 
Mumbai
16 Taipei
1
2
3
4
5
6
7 8
9
11
12
15
16
10
Countries in which Ergomed 
is conducting clinical trials 
14 13
About Ergomed
Services
Contract research
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 post-marketing programmes.
Conducting clinical trials in 54 countries.
Ergomed has over 16 years’ experience working 
across the world in many therapeutic areas, with 
a particular expertise in oncology, neurology and 
immunology and the development of orphan drugs. 
Solutions are tailored to meet the requirements 
of individual clients and specific projects with an 
uncompromising commitment to quality standards.
Ergomed believes its approach to clinical trials is 
differentiated from other providers by its innovative 
Study Site Management model and the use of Study 
Physician Teams resulting in a closer 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 pharmaceutical 
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. +80 
products worked on
+150 
studies
+ 30,000 
patients studied
+2,100 
clinical sites managed 03
Ergomed plc Annual Report and Accounts 2015
Financial information Governance Strategic 
PrimeVigilance
Established in 2008 and acquired by 
Ergomed in July 2014, PrimeVigilance is a 
pharmacovigilance and medical information 
services company with an established 
international footprint and a heritage of 
excellence and leadership in the field of 
pharmacovigilance.
The pharmacovigilance (‘PV’) services offered 
by PrimeVigilance cover all the regulatory and 
scientific elements of PV required to obtain and 
maintain a product licence within Europe: 
 – EU Qualified Person
 – Risk Management Planning (‘RMP’)
 – Compliant PV system with consistent Adverse  
Event data capture
 – Validated ARISg safety database
 – 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
 – Integrated international medical information service  
using AGInquirer database
 – Multi-lingual medical information service.
PrimeVigilance operates from bases in Guildford, 
UK, Zagreb, Croatia and Belgrade, Serbia and 
is currently providing services across more 
than 100 countries to a range of international 
pharmaceutical, generic and biotech clients. 04
Ergomed plc Annual Report and Accounts 2015
About Ergomed
Co-development
Ergomed has created a risk-sharing model 
whereby we offer to contribute to the cost 
of clinical trials through significantly reduced 
fees in return for a carried interest in any 
future revenues of the product.
Ergomed leverages its experience and 
expertise in drug development accumulated 
over 16 years to evaluate new opportunities. 
CEL-SCI (NYSE: CVM): 
Ergomed is working with CEL-SCI on the largest ever 
Phase III study in head and neck cancer with their lead 
product Multikine®. The trial will enrol approximately 880 
patients with advanced primary head and neck cancer. 
On 2 May 2016 CEL-SCI announced that a total of 797 
patients had been enrolled, representing 90% of the total 
enrolment for the study. Ergomed and CEL-SCI have 
started Phase I studies in the additional indication of 
peri-anal warts in HIV/HPV co-infected patients. 
Aeterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ): 
Ergomed is working with Aeterna Zentaris on the Phase III 
pivotal study comparing zoptarelin doxorubicin 
(‘Zoptrex™’ study) as second line therapy for locally-
advanced, recurrent or metastatic endometrial cancer. 
Study recruitment was completed in June 2015 and is 
expected to report in the second half of 2016. The primary 
efficacy endpoint is improvement in median overall survival. 
Ferrer: 
Ergomed has partnered with Ferrer on a new treatment 
for insomnia. Lorediplon is a novel, longer acting non-BZD 
hypnotic drug that modulates the GABAa receptor. 
Ergomed initiated the Phase II study in insomnia in 
October 2015. The study is expected to report in the 
second half of 2016.
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 first patient in the study was included in October 
2015 and is expected to report in 2017.
Synta Pharmaceuticals (NASDAQ: SNTA): 
Ergomed is in a co-development partnership on Synta’s 
development candidate, ganetespib, for a number of 
cancer indications. A Data and Safety Monitoring Board 
indicated in October 2015 that the Phase III study in 
non-small cell lung cancer is unlikely to demonstrate a 
statistically significant improvement and therefore the 
study was terminated. Investigator initiated trials are 
ongoing and although Ergomed’s carried interest remains 
in place, no further investment by Ergomed is planned.
n
Co-development Phase I Phase II Phase III Results
Ferrer 
Lorediplon
Insomnia Results 2016
Synta Pharma 
Ganetespib
Various cancers
Results TBC
Aeterna Zentaris
 
Zoptrex™
Endometrial cancer Results 2016
CEL-SCI
 
Multikine®
Head and neck cancer Results 2018
CEL-SCI
 
Multikine®
Peri-anal warts in HIV/HPV Results TBC
Dilaforette
 
Sevuparin
Sickle-Cell Disease Results 2017
Targeting two new deals per year
Indicates Ergomed
co-development
investment phase   05
Financial information Governance Strategic 
Ergomed plc Annual Report and Accounts 2015
Financial information Governance
About Haemostatix
Ergomed has advanced its business model 
with the acquisition of Haemostatix to gain 
access to its pipeline and two lead products.
The Haemostatix acquisition is a logical extension of its 
well established commitment to co-development, with the 
potential to generate significant value. 
Surgical bleeding and its markets
The surgical bleeding market is estimated to be worth 
approximately $2.5 billion and is growing at 6% per 
annum (Source: MedMarket Diligence). It is comprised of 
a variety of drugs and devices (‘haemostats’), some 
which work simply by closing the wound to stop blood 
flow. Other products supplement the body’s naturally 
occurring proteins and enzymes to promote clot 
formation. 
The current blood clotting products on the market have 
a number of drawbacks:
 – Derived from blood: they are derived from human 
donor blood or from animal sources, which have  
the theoretical risk of infection and a complex  
supply chain.
 – Require preparation or reconstitution: they are 
typically either frozen or in powder form and 
therefore require preparation prior to use.
 – Slow speed of action: some are relatively  
ineffective or can take a long time to work.
The Directors believe that the products under 
development by Haemostatix overcome these 
disadvantages. 
The pipeline
The Haemostatix pipeline comprises of one clinical 
candidate and one pre-clinical candidate as well as a 
number of research programmes.
PeproStat™ The Directors believe that the lead product, 
PeproStat™, overcomes the major drawbacks of existing 
products. 
PeproStat™ Liquid has been evaluated in a Phase I 
clinical trial at four hospitals in the UK involving 20 
patients. The trial was conducted in liver surgery 
patients and completed at the end of 2015. The study 
indicated that the primary endpoint of safety was met 
for PeproStat™. It also showed that during surgery, 95% 
of bleeding was stopped within three minutes, and on 
average in 1.4 minutes. This compares with thrombins 
that claim to stop bleeding in between three to six 
minutes. 
Phase II will be to repeat the trial described above in a 
larger population and in four different surgical indications. 
The Phase II proof-of-concept trial, which is expected to 
begin in 2017, will be conducted in about 120 patients.
ReadyFlow™ Haemostatix’s second product candidate, 
ReadyFlow™, is designed to be a ready-to-use, 
transparent, haemostatic gel that can be applied to 
bleeding sites where the surface is not accessible or 
uneven. ReadyFlow™ gel is pre-mixed with the potent 
peptide-based active and packaged in a pre-filled 
syringe. ReadyFlow™ is expected to enter Phase I  
clinical trials in 2018. Pre-clinical studies of ReadyFlow™ 
indicate over 85% of stronger bleeds would be controlled 
within one minute of compression.
$2.5bn
and growing
HAEMOSTATIX PRODUCTS
COAGULANTS WITH 
PHYSICAL BARRIERS
FROZEN / POWDER
THROMBINS
SEALANTS
SPONGES
THROMBIN
COMBINATIONS
ACTIVE
PASSIVE 06
Ergomed plc Annual Report and Accounts 2015
Our history
1997 Founded 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
 PrimeVigilance wins  
Queen’s Award
 AIM listing on London 
Stock Exchange and 
acquires PrimeVigilance
2015 Dilaforette co-
development deal signed
 Sound Opinion acquired
2016 Haemostatix acquired
Chairman’s statement
Rolf Stahel
Chairman
“Ergomed is prospering and 
making progress on multiple 
fronts. The strategy that we 
laid out at IPO is coming  
to life.”
Our 2015 results and recent 
announcements demonstrate 
Ergomed is prospering and making 
progress on multiple fronts. The 
strategy that we laid out at IPO is 
coming to life. Your Board continues 
to seek opportunities to create 
significant shareholder value, 
drawing upon the experience and 
expertise Ergomed has accumulated 
during its 16 years as a contract 
research organisation. Select 
acquisitions of complementary 
services businesses and expansion of 
our co-development portfolio are key 
components of our growth strategy 
and we intend to deliver on both.
We have made two additions to our 
executive team and Board; Andrew 
Mackie as Chief Business Officer and 
Stephen Stamp as Chief Financial 
Officer. I would like to welcome them 
and congratulate Neil Clark on his 
promotion to Chief Executive Officer 
– PrimeVigilance.
Lastly, I would like to thank the other 
members of the Board, Ergomed’s 
employees and our advisors for all 
their hard work in 2015 and, based  
on our continued combined efforts,  
I look to the future with confidence. 07
Ergomed plc Annual Report and Accounts 2015
Financial information Governance Strategic 
Chief Executive Officer’s review
Dr Miroslav Reljanovic
Chief Executive Officer
“We have delivered a  
very strong financial 
performance with top-line 
and adjusted EBITDA 
growth of 43% and 39% 
respectively… and  
£28 million of new  
contracts won.”
I am pleased to report that in 
our first full year as a public 
company we delivered a very 
strong financial performance 
with top-line and EBITDA growth 
of 43% and 39% respectively. 
The stand-out performer was 
PrimeVigilance with pro forma year 
on year revenue growth of 47%.
We won contracts with a total 
value of £28 million during the 
year including several multi-million 
pound full service Phase II and 
III programmes and full service 
pharmacovigilance services to 
late stage pharmaceutical and 
biotech companies. This means 
our backlog at 1 January 2016 
is a healthy £59 million and sets 
up our services business for 
another good year in 2016. 
We continued to look for bolt-on  
acquisitions to augment the organic 
growth of our services business by 
adding complementary services 
and/or geographical coverage. 
In May 2015 we acquired Sound 
Opinion, one of the UK’s leading 
development plans and monetisation 
of products with the expectation of a 
greater share of the upside in return 
for bearing more of the development 
costs. It was in this context we 
started discussions with Haemostatix.
Haemostatix has developed a 
proprietary platform technology 
which can be used as the basis for 
a series of products to address 
the $2.5 billion global market 
for haemostats. A more detailed 
description of Haemostatix is set 
out on page 5. The Haemostatix 
acquisition is a landmark event for 
Ergomed. In the Board’s view, having 
its lead product already proven to 
work in patients, it is relatively low 
risk with a manageable and rapid 
development programme and also 
offers attractive market potential. 
In summary, Haemostatix has the 
potential to lift Ergomed to the next 
level based on near term milestones.
Ergomed will, as a result of 
acquiring Haemostatix, incur all 
of the development costs of its 
products and overheads which 
will, in the short term, change the 
financial profile of the Group. It is 
important to note that the Board 
intends to retain a balance between 
our services and development 
businesses such that Ergomed 
overall remains EBITDA positive.
Lastly, in addition to delivering 
our financial targets, we can look 
forward to two clinical milestones 
in 2016; lorediplon Phase II results 
and Zoptrex™ Phase III results, as 
well as the initiation of a Phase IIb 
confirmation proof of concept study 
for Haemostatix’s lead product. 
I look forward to another 
productive year in 2016.
 
medical information service 
providers, and immediately 
combined it with PrimeVigilance.
Our co-development business, 
where we provide our expertise and 
services in return for carried interest 
in the drugs under development, 
continues to gain traction. In 
February 2015 we entered into a 
co-development agreement with 
Dilaforette for the Phase II clinical 
development of sevuparin in patients 
with Sickle-Cell Disease (‘SCD’) 
experiencing acute Vaso-Occlusive 
Crisis (‘VOC’). The first of its kind, 
under the terms of the agreement, 
Ergomed co-invests a proportion of 
its CRO fees from the trial in return 
for an equity stake in Dilaforette, 
a company forming part of the 
Karolinska Development AB (STO: 
KDEV, ‘Karolinska Development’) 
portfolio. We also announced that 
in line with the expanded scope of 
work undertaken by Ergomed we 
had increased our investment in 
CEL-SCI Corporation’s Multikine®, 
for the treatment of advanced 
primary head and neck cancer, from 
$10 million to $12 million. Other 
co-  development milestones included 
the initiation of Phase II trials for 
Ferrer (lorediplon) and Dilaforette 
and completion of recruitment for 
Aeterna Zentaris (Zoptrex™). 
We have been looking to enhance 
our co-development portfolio by 
striking deals which provide Ergomed 
with greater control over the  08
Ergomed plc Annual Report and Accounts 2015
Strategic report 
Global market opportunity
According to a recent report by 
Zion Research, the global contract 
research organisation market was 
valued at $34 billion in 2014 and 
is expected to reach $59 billion in 
2020, growing at a compound rate 
of 9.8% between 2015 and 2020.
The demand for contract research 
organisations has been fuelled by 
advanced clinical development 
programmes and the demand for 
new pharmaceutical products 
across the globe. The research and 
development of pharmaceutical 
products typically needs around 
15 years and in order to cut 
the cost and time required for 
product marketing, and focus 
on other operational activities, 
pharmaceutical companies are 
increasingly outsourcing preclinical 
and other drug development 
phases to CROs. Moreover, the high 
failure rate of clinical trials is also 
expected to trigger the demand 
for CROs from pharmaceutical 
and biopharmaceutical companies 
to outsource their R&D.
The global CRO industry has 
witnessed a rise in strategic 
alliances, acquisitions, and joint 
ventures among vendors in the CRO 
market. These strategic initiatives 
are intended at extending service 
offerings and geographical presence 
across the world. Emerging countries 
in Asia Pacific, Latin America 
and Eastern Europe account for 
significant growth in outsourcing 
activities owing to access to large 
pools of treatment naïve patients, 
low labour and manufacturing costs, 
and a skilled medical workforce.
Outlook
Ergomed’s services business 
continues to perform in line with 
expectations, underpinned by a 
total backlog at 1 January 2016 
of £59 million. Around 85% of 
planned 2016 services revenue 
was contracted at the beginning 
of the year. Organic growth of the 
services business is being driven 
by PrimeVigilance where contracts 
tend to be renewed, and sometimes 
expanded, the majority of the time. 
Clinical research services, by their 
nature, tend to be larger and cause 
fluctuation in both revenues and 
earnings from period to period.
Ergomed’s co-development partners 
are expected to announce several 
clinical milestones in 2016 including 
Phase II results on lorediplon and 
Phase III results on Zoptrex™. In 
addition, the Company’s most 
recent acquisition, Haemostatix, 
is expected to initiate a Phase IIb 
confirmation proof of concept study 
for Haemostatix’s lead product 
around the end of the year.
The recent £9.2 million placing has 
reinforced our balance sheet and, 
combined with the growth of our 
services business and the potential of 
our development pipeline, the Board 
believes the Group is well placed to 
deliver returns for shareholders. 
Financial review
Key performance indicators
The Directors consider the principal 
financial performance indicators of 
the Group to be those shown below:
2015 
£m 
2014 
£m
Revenue 30.2 21.2
Gross profit 8.4 5.8
EBITDA 
(adjusted)
1
3.4 2.4
Cash and cash 
equivalents 4.0 4.6
1 Please refer to the Pro forma financial 
information on page 68 and in note 5, 
which explain the adjustments between the 
operating profit and the adjusted EBITDA  
in the above table.
The late-stage development services 
segment includes Phase II–IV clinical 
trials. Late-stage development 
services was the largest end-user 
segment for the CRO market and 
accounted for over 70% share of the 
total market in 2014. The late-stage 
development services segment, 
on which Ergomed is focused, is 
expected to exhibit the fastest 
growth rate during the years to come.
Key components of strategy
The Board continually looks for 
opportunities to capitalise on the 
experience and expertise Ergomed 
has accumulated during its 16 
years in business as a CRO and 
has identified the following key 
components for a growth strategy:
 – Augment the organic growth of its 
services business with selective 
acquisitions to add 
complementary services and/or 
geographical coverage to the 
Company’s current services 
offering; and
 – Enhance the co-development 
portfolio by including deals which 
(a) mirror the existing investment 
risk profile but (b) in addition 
include deals which allow the 
Company to control both the 
development plan and 
monetisation of the product with 
the expectation of a greater share 
of the upside in return for bearing 
more of the development costs.
The Board recognises that expansion 
of the co-development portfolio and 
bearing more of the development 
costs will change the financial profile 
of the Group in the short term. 
The Board is committed however, 
to pursuing both components of 
the growth strategy in parallel and 
maintaining a balance between 
services income and development 
costs such that the Group overall 
remains EBITDA positive. 09
Ergomed plc Annual Report and Accounts 2015
Financial information Governance Strategic 
The Directors consider the principal 
non-financial performance 
indicators of the Group to be:
 – The expansion of the  
co-development portfolio.
 – 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 income statement
Revenue for the year ended 
31 December 2015 was £30.2 million 
(2014: £21.2 million). Note that 2014 
included the post-acquisition results 
of PrimeVigilance. PrimeVigilance 
was acquired in July 2014 and the 
impact of this acquisition on the 
2014 results is shown in the Pro 
forma financial information on 
page 68. PrimeVigilance financial 
results are consolidated from 15 July 
2014, the date of acquisition.
Gross profit was £8.4 million and 
gross margin was 28% (2014: gross 
profit £5.8 million and gross profit 
margin 27%). Ergomed’s gross 
margin fluctuates compared to a 
traditional 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 2015 of 
£5.2 million are higher than the prior 
year costs of £3.7 million mainly due 
to corporate costs and the inclusion 
of PrimeVigilance. There is also an 
increased depreciation/amortisation 
charge in 2015 of £0.7 million (2014: 
£0.5 million) due to the acquisition of 
PrimeVigilance that was completed 
in July 2014. There is also a non-cash 
share-based payment charge in 2015 
of £0.3 million (2014: £0.3 million). 
Operating expenses for 2014 also 
included the non-recurring IPO and 
acquisition costs of £0.6 million.
Operating profit in 2015 was £2.1 
million (2014: £0.8 million). The 2014 
profit is reduced in line with the 
increased expenses noted above.
Consolidated balance sheet
As at 31 December 2015 total 
assets less total liabilities 
amounted to £16.9 million (2014: 
£15.3 million) including cash and 
cash equivalents of £4.0 million 
(2014: £4.6 million). The principal 
movements in the Consolidated 
balance sheet during the year were:
 – Additions relating to software 
under development (ARISg) of 
£0.2 million.
 – Acquisition of Sound Opinion in 
May 2015 and the associated 
acquisition of goodwill, intangible 
and other assets (see note 28).
 – Increase in trade and other 
receivables of £3.2 million, with 
debtor days decreasing to 78 days, 
reflecting the growth in revenues 
in 2015 and also a change in terms 
of trade with a co-development 
partner.
 – Increase in trade and other 
payables of £0.9 million due to 
increased trading levels.
Consolidated cash flow statement
The Ergomed Group was profitable 
and cash generative during 2015 
and 2014. 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 from 
operating activities in the year were 
£0.3 million (2014: £0.5 million).
 
The principal cash outflows from 
investing activities were £0.3 million 
including expenses for the acquisition 
of Sound Opinion, £0.3 million for 
the acquisition of tangible assets 
and £0.3 million for the acquisition 
of intangible assets. The Group 
also paid taxation of £0.6 million 
in 2015 (2014: £0.4 million).
Going concern
As at 31 December 2015 the Group 
had £4.0 million in cash or cash 
equivalents and a strong backlog 
of signed contracts. Furthermore, 
the Company raised £8.6 million 
net of expenses in a placing in May 
2016. The Company is currently 
forecasting to be EBITDA 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. 10
Ergomed plc Annual Report and Accounts 2015
Strategic report continued
Principal risks and uncertainties
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 now 
that it is a public company 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,
then 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 revenue generated 
by the top five clients in the year 
ended 31 December 2015 was 55.6%. 
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. 11
Ergomed plc Annual Report and Accounts 2015
Financial information Governance Strategic 
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.
S Stamp
Director 12
Ergomed plc Annual Report and Accounts 2015
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; and 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 Co-ordination 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.
Stephen Stamp
Chief Financial Officer
Stephen Stamp joined Ergomed as Chief Financial 
Officer in January 2016. Prior to joining Ergomed, 
Stephen worked in the US as Chief Financial Officer 
of AssureRx Health, Inc. Prior to that he was CFO of 
EZCORP, Inc. and Chief Operating Officer and CFO at 
Xanodyne Pharmaceuticals, Inc. Before leaving for the 
US, Stephen was Group Finance Director of Shire plc 
and Regus Plc. Earlier in his career, Stephen was an 
investment banker with Lazard in London, advising mainly 
public companies on cross-border M&A and corporate 
finance. Prior to Lazard, he worked for KPMG in London 
where he qualified as a Chartered Accountant. Stephen 
holds a BA(Econ) from The University of Manchester.
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 £67 million 
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. 13
Ergomed plc Annual Report and Accounts 2015
Financial information Strategic Governance
Neil Clark
Chief Executive Officer – PrimeVigilance
Neil Clark joined Ergomed as Chief Financial Officer in 
January 2009 and was promoted to Chief Executive 
Officer – PrimeVigilance in January 2016. 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).
Andrew Mackie
Chief Business Officer
Andrew Mackie joined Ergomed as Chief Business 
Officer in 2015 having worked with the Company as 
a consultant since 2004. He has been instrumental 
in developing the co-development business and 
negotiating the partnerships signed to date. Prior 
to joining Ergomed, Andrew worked in the Business 
Development group at Eli Lilly, having previously been 
Head of Life Sciences at IP Group and Head of Alliance 
Management at Antisoma. Prior to that, Andrew held a 
variety of R&D positions at Novartis, Sanofi and MDS. 
Andrew holds a BSc in biochemistry from Queen’s 
University (Canada), an LLB from the University of 
London and an MBA from the London Business School.
Christopher Collins
Non-Executive Director
Christopher Collins 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. 14
Ergomed plc Annual Report and Accounts 2015
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 
12 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 12 months by the Company.
Andrew Mackie has a service agreement with Ergomed plc 
dated 1 July 2015. His appointment is terminable on six 
months’ notice by himself and 12 months by the Company.
Stephen Stamp has a service agreement with Ergomed plc 
dated 11 January 2016. His appointment is terminable on 
six months’ notice by himself and six 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, Neil Clark, 
Andrew Mackie and Stephen Stamp are entitled to receive 
base salary, 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. 15
Ergomed plc Annual Report and Accounts 2015
Financial information Strategic Governance
Directors’ remuneration
The Directors received the following remuneration during the year:
Name of Director
Fees and 
salary 
£000s
Benefits 
£000s
Annual 
bonus 
£000s
Pension 
£000s
Total 
2015 
£000s 
Rolf Stahel
1,2
104 – – – 104
Miroslav Reljanovic 232 – 69 – 301
Neil Clark
3
200 3 50 20 273
Andrew Mackie
3,4
100 1 25 10 136
Chris Collins
5
40 – – – 40
Peter George
6
40 – – – 40
Name of Director
Fees and 
salary 
£000s
Benefits 
£000s
Annual 
bonus 
£000s
Pension 
£000s
Total 
2014 
£000s 
Rolf Stahel
1,2
135 – – – 135
Miroslav Reljanovic 112 – 40 – 152
Neil Clark
3
189 2 40 19 250
Chris Collins
5
20 – – – 20
Peter George
6
20 – – – 20
1. The remuneration of Rolf Stahel includes consultancy fees of £54,000 (2014: £98,000) paid to Chesyl Pharma Limited.
2. Rolf Stahel was appointed as a Director on 18 April 2014.
3. Neil Clark and Andrew Mackie receive private medical insurance as a benefit.
4. Andrew Mackie was appointed as a Director on 1 July 2015.
5. Chris Collins was appointed as a Director on 14 July 2014.
6. Peter George was appointed as a Director on 20 May 2014.
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.
Ergomed has established three share option schemes:
i) the Unapproved Executive Share Option Scheme 2007;
ii) the Stahel Option Agreement; and
iii) the Ergomed plc Long Term Incentive Plan.
In addition, Neil Clark and Andrew Mackie hold options over shares held by Miroslav Reljanovic.
Options granted as at 31 December 2015
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
Options over new Ergomed shares:
Rolf Stahel 18/04/2014 1,260,000 £1.60 18/04/2014 17/04/2024 Stahel Option Agreement
Neil Clark 31/12/2009 1,000,000 £0.01 31/12/2009 31/12/2019 Unapproved Share Option Scheme 2007
24/12/2015 150,000 £1.69 03/06/2018 23/12/2025 Ergomed plc Long Term Incentive Plan
Andrew Mackie 24/12/2015 125,000 £1.69 03/06/2018 23/12/2025 Ergomed plc Long Term Incentive Plan
Options over Ergomed shares owned by Miroslav Reljanovic:
Neil Clark 20/07/2015 88,235 £0.01 20/07/2015 19/07/2025 N/A
20/07/2015 88,235 £0.01 20/07/2016 19/07/2025 N/A
Andrew Mackie 20/07/2015 88,235 £0.01 20/07/2015 19/07/2025 N/A
20/07/2015 88,235 £0.01 20/07/2016 19/07/2025 N/A
No options held by the Directors were exercised or lapsed during the year.
This report was approved by the Board of Directors on 3 June 2016 and signed on its behalf by
P George
Director, Chairman of the Remuneration Committee 16
Ergomed plc Annual Report and Accounts 2015
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 2010 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, four 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.
The Board considers Peter George and Christopher 
Collins to be independent Directors.
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 determines 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 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 that is appropriate for an 
AIM listed company. 17
Ergomed plc Annual Report and Accounts 2015
Financial information Strategic Governance
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 and Risk 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.
 – Risk register – senior management works with the 
Audit and Risk Committee to identify key risks facing 
the Group, any mitigating controls and persons 
responsible for reviewing and managing such risks. The 
risk register is reviewed periodically and updated and 
reviewed by the Board no less than annually.
 – 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 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  
and Risk 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.
 – Financial position and prospects memorandum –  
senior management works with the Audit and Risk 
Committee to produce a comprehensive review of  
risks and internal procedures to control financial 
reporting in compliance with ICAEW Technical Relate  
RECH 01/13 CFF. The memorandum is reviewed in 
detail and approved by the Board annually.
The Board, through the Audit and Risk 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 Risk 
Committee and of the Remuneration Committee.
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 12 months. Accordingly, the 
Board continues to adopt the going concern basis in 
preparing the financial statements.
 
  18
Ergomed plc Annual Report and Accounts 2015
Directors’ report
For the year ended 31 December 2015
The Directors present their report and financial 
statements for the Company and Group for the year 
ended 31 December 2015.
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 54 countries.
Business review and key performance indicators
The Group’s results are set out in the Consolidated 
income statement on page 21 and are explained in the 
Financial review on page 9. A detailed review of the 
business, its results and future direction is included 
in the Chief Executive Officer’s review on page 7.
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 (2014: £nil).
Directors
The Directors of the Company are as follows:
Rolf Stahel
Miroslav Reljanovic
Neil Clark
Andrew Mackie (appointed 2 July 2015)
Stephen Stamp (appointed 11 January 2016)
Christopher Collins
Peter George
At 31 December 2015, the Directors had the following 
beneficial interests in the Company’s shares:
Number of 
shares
Percentage 
of total 
issued  
share  
capital
Rolf Stahel 125,000 0.4%
Miroslav Reljanovic 17,232,237 59.9%
Neil Clark 91,912 0.3%
Andrew Mackie – –
Stephen Stamp – –
Christopher Collins 31,250 0.1%
Peter George 31,250 0.1%
Biographical details of the Directors are given on pages 12 
and 13.
Directors’ interests
The interests of Directors in the shares and options of  
the Company are given above and in the Directors’ 
remuneration report on page 15.
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 14 within the Directors’ remuneration report.
Share capital
As at 31 December 2015, the issued share capital of the 
Company comprised 28,750,000 ordinary shares of 1p 
each (‘Ordinary Shares’), issued and fully paid up.
The closing market price of the Company’s Ordinary Shares 
at close of business on 31 December 2015 was 169.5p.
The maximum share price during the period from 
1 January 2015 through 31 December 2015 was 186p and 
the minimum price was 155p 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 Section 418 of the 
Companies Act 2006.
Deloitte LLP have expressed their willingness to continue 
in office as auditor and a resolution to re-appoint them 
will be proposed at the forthcoming Annual General 
Meeting.
Subsequent events
Details of subsequent events are set out in note 33 to the 
financial statements.
Directors’ responsibilities
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 (‘IFRSs’) as adopted by the European 
Union (‘EU’) and have elected under company law 
to prepare the Company financial statements in 
accordance with IFRSs as adopted by the EU.
The financial statements are required by law and IFRSs 
adopted by the EU to present fairly the financial position 
of the Group and the Company and the financial  19
Ergomed plc Annual Report and Accounts 2015
Financial information Strategic Governance
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 IFRSs 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.
Approved by the Board of Directors and signed on behalf 
of the Board.
S Jurić
Company Secretary
3 June 2016 20
Ergomed plc Annual Report and Accounts 2015
Independent auditor’s report
To the members of Ergomed plc
We have audited the financial statements of Ergomed plc for the year ended 31 December 2015 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 50.
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 auditor’s 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 auditor
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 2015 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  
3 June 2016
Deloitte House 
Station Place 
Cambridge CB1 2FP Financial information Governance Strategic 
21
Ergomed plc Annual Report and Accounts 2015
Consolidated income statement
For the year ended 31 December 2015
Notes
2015  
£000s
2014  
£000s
Revenue 3, 4 30,178 21,155
Cost of sales (21,808) (15,385)
Gross profit 8,370 5,770
Administrative expenses (5,186) (3,677)
Other operating income 81 54
Amortisation of acquired revalued intangible assets 14 (596) (446)
Share-based payment charge 26 (288) (338)
Exceptional items 7 (309) (584)
Operating profit 2,072 779
Investment revenues 8 1 –
Finance costs 9 (1) (2)
Profit before taxation 2,072 777
Taxation 11 (520) (199)
Profit for the year 5 1,552 578
Earnings per share 
Basic 12 5.4p 2.4p 
Diluted 12 5.2p 2.3p
All activities in the current and prior period relate to continuing operations.
The notes on pages 26 to 52 form an integral part of these financial statements. 22
Ergomed plc Annual Report and Accounts 2015
Consolidated statement of  
comprehensive income
For the year ended 31 December 2015
2015  
£000s
2014  
£000s
Profit for the year 1,552 578
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations (244) (212)
Other comprehensive income for the year net of tax (244) (212)
Total comprehensive income for the year 1,308 366 Financial information Governance Strategic 
23
Ergomed plc Annual Report and Accounts 2015
Consolidated balance sheet
As at 31 December 2015
Notes
2015  
£000s
2014  
£000s
Non-current assets
Goodwill 13 7,488 7,282
Other intangible assets 14 2,819 2,927
Property, plant and equipment 15 335 185
Investments 17 183 39
Deferred tax asset 18 365 323
11,190 10,756
Current assets
Trade and other receivables 19 9,528 6,343
Cash and cash equivalents 20 3,974 4,576
13,502 10,919
Total assets 24,692 21,675
Current liabilities
Borrowings 21 (5) (7)
Trade and other payables 22 (5,955) (5,010)
Deferred revenue (795) (594)
Current tax liability (478) (144)
Total current liabilities (7,233) (5,755)
Net current assets 6,269 5,164
Non-current liabilities
Borrowings 21 (7) (6)
Deferred tax liability 18 (516) (575)
Total liabilities (7,756) (6,336)
Net assets 16,936 15,339
Equity 
Share capital 23 288 288
Share premium account 24 12,342 12,342
Share-based payment reserve 25 650 362
Translation reserve 25 (537) (293)
Retained earnings 4,193 2,640
Total equity 16,936 15,339
The notes on pages 26 to 52 form an integral part of these financial statements.
Approved by the Board of Directors and authorised for issue on 3 June 2016.
S Stamp
Director
Company Registration No. 04081094
  24
Ergomed plc Annual Report and Accounts 2015
Consolidated statement of changes in equity
For the year ended 31 December 2015
Share 
capital 
£000s
Share 
premium 
account 
£000s
Share-based 
payment 
reserve 
£000s
Translation 
reserve 
£000s
Retained 
earnings 
£000s
Total  
£000s
Balance at 31 December 2013 200 – 24 (81) 1,764 1,907
Profit for the year – – – – 578 578
Other comprehensive income for the year – – – (212) – (212)
Total comprehensive income for the year – – – (212) 578 366
Share issues during the year (net of expenses) 88 12,342 – – – 12,430
Share-based payment charge for the year – – 338 – – 338
Deferred tax credit taken directly to equity – – – – 298 298
Balance at 31 December 2014 288 12,342 362 (293) 2,640 15,339
Profit for the year – – – – 1,552 1,552
Other comprehensive income for the year – – – (244) – (244)
Total comprehensive income for the year – – – (244) 1,552 1,308
Share-based payment charge for the year – – 288 – – 288
Deferred tax credit taken directly to equity – – – – 1 1
Balance at 31 December 2015 288 12,342 650 (537) 4,193 16,936
  Financial information Governance Strategic 
25
Ergomed plc Annual Report and Accounts 2015
Consolidated cash flow statement
For the year ended 31 December 2015
Notes
2015  
£000s
2014  
£000s
Cash flows from operating activities
Profit before taxation 2,072 777
Adjustment for:
Amortisation and depreciation 713 518
Loss/(gain) on disposal of fixed assets 4 (5)
Share-based payment charge 288 338
Acquisition of shares for non-cash consideration (142) –
Exchange adjustments (251) (208)
IPO costs – 299
Acquisition costs 54 285
Investment revenues (1) –
Finance costs 1 2
Operating cash flow before changes in working capital and provisions 2,738 2,006
Increase in trade and other receivables (2,898) (1,993)
Increase in trade and other payables 1,012 954
Cash generated from operations 852 967
Taxation paid (588) (430)
Net cash inflow from operating activities 264 537
Investing activities
Investment revenues received 1 –
Acquisition of property, plant and equipment (270) (62) 
Acquisition of intangible assets (285) (84)
Investment in joint venture and other investments (1) (40)
Acquisition of subsidiaries including expenses of acquisition (312) (6,846)
Receipts from sale of property, plant and equipment 2 11 
Net cash outflow from investing activities (865) (7,021)
Financing activities
Issue of new shares – 11,000
Expenses of fundraising – (1,869) 
Finance costs paid (1) (2)
Increase in borrowings 7 11
Repayment of borrowings (7) (30)
Net cash (outflow)/inflow from financing activities (1) 9,110
Net (decrease)/increase in cash and cash equivalents (602) 2,626
Cash and cash equivalents at start of the year 4,576 1,950
Cash and cash equivalents at end of year 20 3,974 4,576 26
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements
For the year ended 31 December 2015
1. Accounting policies
Ergomed plc and its wholly owned subsidiaries provide a full range of clinical trial planning, management and 
monitoring, as well as drug safety and medical information services. The Group has a worldwide presence with 
operations in the UK, Poland, Germany, Bosnia, Croatia, Serbia, Russia, Switzerland, Ukraine, Taiwan, 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 3 June 2016.
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 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 IFRSs). 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  Financial information Governance Strategic 
27
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements
For the year ended 31 December 2015
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.
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 2017. 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
IFRS 11 (amendments) Accounting for Acquisitions of Interests in Joint Operations
IAS 1 (amendments) Disclosure Initiative
IAS 16 and IAS 38 (amendments) Clarification of Acceptable Methods of Depreciation and Amortisation
IAS 16 and IAS 41 (amendments) Agriculture: Bearer Plants
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
IFRS 10, IFRS 12 and IAS 28 (amendments) Investment Entities: Applying the Consolidation Exemption
Annual Improvements to IFRSs:  
2012–2014 Cycle
Amendments to: IFRS 5 Non-current Assets Held for Sale and 
Discontinued Operations, 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
Computer equipment 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 
IFRS 3, 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. 28
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
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.
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.
Costs associated with the development of computer software are initially capitalised at cost which includes the 
purchase price (net of any discounts and rebates) and other directly attributable costs of preparing the asset for its 
intended use. Direct expenditure, including employee costs, which enhances or extends the performance of computer 
software beyond its specifications and which can be reliably measured, is added to the original cost of the software. 
Costs associated with maintaining the computer software are recognised as an expense when incurred. 
The computer software under development is currently under construction and so no amortisation has been recognised 
in the current year. The asset will subsequently be carried at cost less accumulated amortisation and accumulated 
impairment losses. These costs will be amortised to profit or loss using the straight line method over their estimated 
useful lives of five years, once the asset is in use.
1. Accounting policies continued Financial information Governance Strategic 
29
Ergomed plc Annual Report and Accounts 2015
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.
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. 30
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
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.
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.
1. Accounting policies continued Financial information Governance Strategic 
31
Ergomed plc Annual Report and Accounts 2015
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.
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. 32
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
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 IFRSs, 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.
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 £233,000 (2014: £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 Sound Opinion and other potential 
acquisitions’ due diligence costs, 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.
1. Accounting policies continued Financial information Governance Strategic 
33
Ergomed plc Annual Report and Accounts 2015
3. Revenue
An analysis of the Group’s revenue is as follows:
2015  
£000s
2014  
£000s
Provision of clinical research services 21,906 18,062
Provision of drug safety and medical information services 8,272 3,093
30,178 21,155
Other operating income 81 54
Investment revenues 1 –
30,260 21,209
The provision of drug safety and medical information services relates to the revenues of PrimeVigilance following its 
acquisition by the Company on 15 July 2014, and of Sound Opinion Limited following its acquisition on 26 May 2015.
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 focused 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 business segment DS&MI relates to the results of PrimeVigilance 
following its acquisition by the Company on 15 July 2014, and of Sound Opinion Limited, following its acquisition on 
26 May 2015. 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:
2015
Revenue from external customers
CRS  
£000s
DS&MI 
£000s
Total  
£000s
UK 2,748 3,395 6,143
Rest of Europe, Middle East and Africa 9,407 2,878 12,285
North America 7,945 1,874 9,819
Asia 1,806 3 1,809
Australia – 122 122
21,906 8,272 30,178
2014
Revenue from external customers
CRS  
£000s
DS&MI 
£000s
Total  
£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 34
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
2015
Revenue
CRS  
£000s
DS&MI  
£000s
Eliminations 
£000s
Consolidated 
total  
£000s
Third party sales 21,906 8,272 – 30,178
Intersegment sales and recharges 67 9 (76) –
Total revenue 21,973 8,281 (76) 30,178
Revenue
CRS  
£000s
DS&MI  
£000s
Eliminations 
£000s
Consolidated 
total  
£000s
Segment result 1,165 2,102 (2) 3,265
Amortisation of acquired revalued intangible assets (596)
Share-based payment charge (288)
Establishment of Taiwan office (37)
M&A activities (272)
Operating profit 2,072
Investment revenues 1
Finance costs (1)
Profit before tax 2,072
Tax (520)
Profit after tax 1,552
2014
Revenue
CRS  
£000s
DS&MI  
£000s
Eliminations 
£000s
Consolidated 
total  
£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
Revenue
CRS  
£000s
DS&MI  
£000s
Eliminations 
£000s
Consolidated 
total  
£000s
Segment result 1,667 480 – 2,147
Amortisation of acquired revalued intangible assets (446)
Share-based payment charge (338)
Expenses in relation to IPO (299)
Expenses in relation to acquisition of PrimeVigilance (285)
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
2015  
£000s
2014  
£000s
CRS 5,913 6,129
DS&MI 11,023 9,210
Consolidated total net assets 16,936 15,339
4. Operating segments continued Financial information Governance Strategic 
35
Ergomed plc Annual Report and Accounts 2015
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
2015  
£000s
2014  
£000s
2015  
£000s
2014  
£000s
CRS 286 322 238 51
DS&MI 427 197 317 95
713 519 555 146
Information about major customers
In 2015, the Group had two customers that contributed 10% or more to the Group’s revenue. Revenues of approximately 
£5,219,000 and £5,181,000 were recognised from these customers respectively for clinical research services.
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.
5. Profit for the year and EBITDA
2015  
£000s
2014  
£000s
Profit for the year is stated after charging/(crediting):
Depreciation of property, plant and equipment – owned 105 66
Depreciation of property, plant and equipment – leased 5 5
Amortisation of intangible assets 7 2
Depreciation and amortisation charges within Administrative expenses 117 73
Amortisation of acquired revalued intangible assets 596 446
Exchange loss/(gain) 115 (76)
Loss/(gain) on disposals of property, plant and equipment 4 (5)
Staff costs (note 10) 7,546 4,501
EBITDA, EBITDA (adjusted) and EBITDA (adjusted for PV acquisition) are calculated as follows:
2015  
£000s
2014  
£000s
Operating profit 2,072 779
Adjust for:
Depreciation and amortisation charges within Administrative expenses 117 73
Amortisation of acquired revalued intangible assets 596 446
Share-based payment charge 288 338
Exceptional items 309 584
EBITDA 3,382 2,220
Profit margin charged by related party – 209
EBITDA (adjusted) 3,382 2,429
Results of PrimeVigilance for H1 2014 – 352
EBITDA (adjusted for PV acquisition) 3,382 2,781
The adjustments to EBITDA are made to ensure that 2015 results and 2014 results are presented on a comparable basis.  36
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
6. Auditor’s remuneration
The analysis of the auditor’s remuneration is as follows:
2015  
£000s
2014  
£000s
Fees payable to the Company’s auditor and their associates for the audit of the Company’s  
annual accounts 93 110
Total audit fees 93 110
– Interim review 33 30
– Other taxation advisory services – 47
– Corporate finance services – 320
Total non-audit fees 33 397
Fees payable to Deloitte LLP 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
2015  
£000s
2014  
£000s
Establishment of Taiwan office 37 –
Acquisition of Sound Opinion Limited (note 28) 54 –
Other M&A activities 218 –
Expenses in relation to IPO (note 24) – 299 
Expenses in relation to acquisition of PrimeVigilance Limited – 285
309 584
In line with the way the Board and chief operating decision maker review the business, large one-off exceptional costs 
related to the establishment of the subsidiary in Taiwan, the acquisition of Sound Opinion Limited and other M&A 
activities are shown as exceptional costs.
In 2014, 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 Limited were separately identified and shown as exceptional costs.
8. Investment revenues
2015  
£000s
2014  
£000s
Bank and other interest 1 –
9. Finance costs
2015  
£000s
2014  
£000s
Loan and other interest payable 1 2
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:
2015 
Number
2014 
Number
Administration 40 21
Project staff 216 117
Management 13 10
Directors 2 2
271 150 Financial information Governance Strategic 
37
Ergomed plc Annual Report and Accounts 2015
Employment costs
2015  
£000s
2014  
£000s
Wages and salaries 6,546 3,977
Social security costs 882 472
Other pension costs (note 31) 118 52
7,546 4,501
Disclosures relating to key management personnel are included within the Directors’ remuneration report on pages 14 
and 15.
11. Taxation
2015  
£000s
2014  
£000s
Current tax
UK corporation tax charge for the year 349 109
Overseas corporation tax 308 147
Adjustment in respect of prior years 13 (3)
Current tax charge for the year 670 253
Deferred tax
Origination and reversal of timing differences (143) (51)
Effect of changes in tax rates (7) (3)
Total tax charge for the year 520 199
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:
2015  
£000s
2014  
£000s
Deferred tax
Change in estimated excess tax deductions related to share-based payments (1) (298)
Total income tax credit recognised directly in equity (1) (298)
The standard rate of tax for the year, based on the UK standard rate of corporation tax, is 20.25% (2014: 21.5%). The 
actual tax charges for the years differ from the standard rate for the reasons set out in the following reconciliation.
2015  
£000s
2014  
£000s
Profit on ordinary activities before taxation 2,072 777
Tax on profit on ordinary activities at blended standard rate of 20.25% (2014: 21.5%) 419 167
Non-deductible expenses 268 279
Additional allowable expenses (91) (35)
Timing differences arising in the year (155) (77)
Non-taxable income – (138)
Adjustments to previous periods 13 (3)
Effect of different tax rates of subsidiaries operating in other jurisdictions 74 1 
Difference due to change in rate of taxation (7) (3)
Increase/(utilisation) of tax losses (8) 25
Translation effect 7 (17)
Tax expense for the year 520 199
The Finance Act 2015, which provides for a reduction in the main rate of corporation tax from 20% to 19% effective from 
1 April 2016, and from 19% to 18% effective from 1 April 2017 was substantively enacted on 26 October 2015. These rate 
reductions have been reflected in the calculation of deferred tax at the balance sheet date. 38
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
12. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
2015  
£000s
2014  
£000s
Earnings for the purposes of basic earnings per share being net profit attributable to owners  
of the Company 1,552 578
Effect of dilutive potential ordinary shares – –
Earnings for the purposes of diluted earnings per share 1,552 578
2015  
£000s
2014  
£000s
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 28,750,000 24,075,342
Effect of dilutive potential ordinary shares
Share options 1,015,223 993,600
Weighted average number of ordinary shares for the purposes of diluted earnings per share 29,765,223 25,068,942
13. Goodwill
£000s 
Cost
At 1 January 2014 1,332
Arising on acquisition of subsidiary 6,827
Revaluation of provisional values in accordance with IFRS 3 (877)
At 1 January 2015 7,282
Arising on acquisition of subsidiary (note 28) 374
Revaluation of provisional values in accordance with IFRS 3 (168)
At 31 December 2015 7,488
Accumulated impairment losses
At 1 January 2014, 1 January 2015 and 31 December 2015 –
Net book value
At 31 December 2015 7,488
At 31 December 2014 7,282
The goodwill arising during the year ended 31 December 2015 relates to the acquisition of Sound Opinion Limited on 
26 May 2015 (note 28).
The goodwill arising during the year ended 31 December 2014 relates to the acquisition of PrimeVigilance Limited and 
its subsidiaries on 15 July 2014.
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:
2015  
£000s
2014  
£000s
2013  
£000s
Clinical research services
Ergomed Virtuoso Sarl 455 455 1,332
Drug safety and medical information services
PrimeVigilance Limited 6,827 6,827 –
Sound Opinion Limited 206 – –
7,033 6,827 –
7,488 7,282 1,332
The Group tests goodwill for impairment annually or more frequently if there are indications that goodwill might be impaired.
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. Financial information Governance Strategic 
39
Ergomed plc Annual Report and Accounts 2015
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 2014 – – – – –
Acquired with subsidiary 280 – 1,480 460 2,220
Revaluation of provisional values in accordance with IFRS 3 – 1,070 – – 1,070
Additions 84 – – – 84
Re-allocation from Property, plant and equipment 116 – – – 116
Translation movement (8) – – – (8)
At 31 December 2014 472 1,070 1,480 460 3,482
Acquired with subsidiary (note 28) – – 210 – 210
Additions 285 – – – 285
Translation movement (6) – – – (6)
At 31 December 2015 751 1,070 1,690 460 3,971
Amortisation 
At 1 January 2014 – – – – –
Charge for the year 2 – – – 2
Amortisation cost of revalued intangible assets – 267 148 31 446
Re-allocation from Property, plant and equipment 115 – – – 115
Translation movement (8) – – – (8)
At 31 December 2014 109 267 148 31 555
Charge for the year 7 – – – 7
Amortisation cost of revalued intangible assets – 214 321 61 596
Translation movement (6) – – – (6)
At 31 December 2015 110 481 469 92 1,152
Net book value
At 31 December 2015 641 589 1,221 368 2,819
At 31 December 2014 363 803 1,332 429 2,927
The re-allocation of Software from Property, plant and equipment during 2014 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 Sound Opinion Limited on 
26 May 2015.
The intangible assets acquired with subsidiary during 2014 relate to the acquisition of PrimeVigilance on 15 July 2014.
Included within Software is software under development with an asset value of £583,000 (2014: £358,000). The 
software is currently still under construction and so no amortisation has been recognised in the current year. 40
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
15. Property, plant and equipment
Leasehold 
improvements 
£000s
Fixtures 
and fittings 
£000s
Motor 
vehicles 
£000s
Computer 
equipment 
£000s
Total  
£000s
Cost
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)
Translation movement (4) (4) (8) (16) (32)
At 1 January 2015 38 51 68 346 503
Additions 17 35 19 199 270
Acquired with subsidiary (note 28) – – – 2 2
Re-allocation – (2) – 2 –
Disposals – (1) (14) (3) (18)
Translation movement (2) (2) (5) (11) (20)
At 31 December 2015 53 81 68 535 737
Depreciation 
At 1 January 2014 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)
Translation movement (3) (3) (3) (14) (23)
At 1 January 2015 26 28 28 236 318
Charge for the year 5 10 5 90 110
Re-allocation – (2) – 2 –
Disposals – – (9) (3) (12)
Translation movement (1) (1) (2) (10) (14)
At 31 December 2015 30 35 22 315 402
Net book value
At 31 December 2015 23 46 46 220 335
At 31 December 2014 12 23 40 110 185
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 2015 33
At 31 December 2014 33
Depreciation charge for the year
Year ended 31 December 2015 5
Year ended 31 December 2014 5 Financial information Governance Strategic 
41
Ergomed plc Annual Report and Accounts 2015
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:
Number of  
wholly owned subsidiaries
Principal activity Place of incorporation and operation 2015 2014
Clinical research services Germany 1 1
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
Clinical research services T aiwan 1 –
Drug safety and medical information services United Kingdom 2 1
Drug safety and medical information services Croatia 1 1
Dormant United Kingdom 1 1
17. Investments
Dilaforette 
Holding AB 
£000s
Ergomed 
Clinical 
Research 
Saudi Arabia
£000s
Total 
£000s
Cost
At 1 January 2014 – – –
Additions – 40 40
Translation movement – (1) (1)
At 1 January 2015 – 39 39
Additions 142 – 142
Translation movement 2 – 2
At 31 December 2015 144 39 183
Provision for impairment
At 31 December 2014 and 31 December 2015 – – –
Net book value
At 31 December 2015 144 39 183
At 31 December 2014 – 39 39
Dilaforette Holding AB
Under the co-development agreement with Dilaforette AB, the Group receives shares in return for its contribution to 
the co-development programme. During the year, shares valued at £142,000 were issued to the Group.
Ergomed Clinical Research Saudi Arabia
On 22 July 2014, the Group invested £40,000 for a 50% holding in a joint venture in Saudi Arabia – ‘Ergomed Clinical 
Research Saudi Arabia’. The operation is still in the set up phase and the asset is held at cost. 42
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
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:
Deferred tax assets
Tax losses 
£000s
Timing 
differences 
£000s
Total 
£000s
At 1 January 2014 2 – 2
(Charge)/credit to profit or loss (2) 25 23
Credit direct to equity – 298 298
At 1 January 2015 – 323 323
Credit to profit or loss 3 46 49
Credit direct to equity – 1 1
Translation movement – (8) (8)
At 31 December 2015 3 362 365
Deferred tax liabilities
ACAs 
£000s
Timing 
differences 
£000s
Total 
£000s
At 1 January 2014 – – –
Acquired with subsidiary (25) (581) (606)
(Charge)/credit to profit or loss (53) 84 31
At 1 January 2015 (78) (497) (575)
Acquired with subsidiary – (42) (42)
(Charge)/credit to profit or loss (46) 147 101
At 31 December 2015 (124) (392) (516)
2015 
£000s
2014 
£000s
Deferred tax assets 365 323
Deferred tax liabilities (516) (575)
Net deferred tax liabilities (151) (252)
At 31 December 2015, the Group had unused tax losses of £384,000 (2014: £435,000) available for offset against future 
profits. A deferred tax asset has been recognised in respect of £16,000 (2014: £nil) of such losses. No deferred tax asset 
has been recognised in respect of the remaining £368,000 (2014: £435,000) as it is not considered probable that there 
will be future profits available. Included in unrecognised tax losses are losses of £77,000 (2014: £106,000) that will 
expire in 2026. Other losses may be carried forward indefinitely.
19. Trade and other receivables
2015 
£000s
2014 
£000s
Trade receivables 6,412 4,675
Amounts receivable from related parties – 14
Other receivables 381 327
Prepayments 376 205
Accrued income 1,989 999
Corporation tax receivable 370 123
9,528 6,343 Financial information Governance Strategic 
43
Ergomed plc Annual Report and Accounts 2015
Included in trade receivables are the following amounts that are past due at the reporting date by the following periods.
2015 
£000s
2014 
£000s
Less than 30 days overdue 1,592 1,263
31 to 60 days overdue 221 85
61 to 90 days overdue 24 12
More than 90 days overdue 404 480
2,241 1,840
Movement in the provision for doubtful debts.
2015 
£000s
2014 
£000s
Balance at the beginning of the year 200 13
Translation movements (12) –
Impairment losses recognised 45 187
Balance at the end of the year 233 200
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
2015 
£000s
2014 
£000s
Cash at bank 3,974 4,576
The effective interest rate at the balance sheet date on cash at bank was 0.021% (2014: 0.003%).
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:
2015 
£000s
2014 
£000s
GBP 913 2,252
Euro 348 849
USD 1,116 794
Other 1,597 681
3,974 4,576
21. Borrowings
2015 2014
Capital 
£000s
Interest 
£000s
Capital 
£000s
Interest 
£000s
Secured borrowings at amortised cost
Finance leases
Borrowings within one year 5 1 7 1
Between one and two years 3 – 3 –
Between two and five years 4 – 3 –
Borrowings greater than one year 7 – 6 –
Totals 12 1 13 1
Finance leases are secured on the assets to which they relate. 44
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
22. Trade and other payables
2015 
£000s
2014 
£000s
Trade creditors 2,381 2,650
Amounts payable to related parties 71 12
Social security and other taxes 374 332
Other payables 381 275
Accruals 2,748 1,741
5,955 5,010
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
2015 
No.
2014 
No.
Allotted, called up and fully paid
Ordinary Shares of £0.01 each
Balance at 1 January 28,750,000 20,000,000
Shares issued during the year – 8,750,000
Balance at 31 December 28,750,000 28,750,000
2015 
£000s
2014 
£000s
Allotted, called up and fully paid
Ordinary Shares of £0.01 each
Balance at 1 January 288 200
Shares issued during the year – 88
Balance at 31 December 288 288
There were no shares issued during the year. During 2014, 6,875,000 ordinary shares of £0.01 each (‘Ordinary Shares’) 
were issued at a price of £1.60 per share as part of the Initial Public Offering by the Company. A further 1,875,000 
Ordinary Shares were issued as part consideration for the acquisition of PrimeVigilance Limited.
24. Share premium account
2015 
£000s
2014 
£000s
Balance at 1 January 12,342 –
Share issue during the year – 13,912
Expenses of share issue during the year – (1,570)
Balance at 31 December 12,342 12,342
No share premium arose during the year. The share premium arising during 2014 related 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. Expenses of £1,570,000 relating to the 
issue of shares were deducted from the Share premium account. Additional expenses of £299,000 were charged to the 
income statement as Exceptional items (note 7).
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. Financial information Governance Strategic 
45
Ergomed plc Annual Report and Accounts 2015
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; and
 – 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) Qualifying EMI 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.
2015 2014
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 1,368,000 £1.64 – –
Lapsed during the year (15,000) £1.625 – –
Outstanding at the end of the year 1,353,000 £1.64 – –
Vested at the end of the year – –
Exercisable at the end of the year – –
Options were valued using a Black-Scholes option pricing model, using the following inputs:
Award date 3 June 2015 24 December 2015
Fair value per share option: 44.68p 42.38p
Share price: £1.625 £1.660
Exercise price: £1.625 £1.660
Volatility: 28% 27%
Expected life: 5 years 5 years
Expected dividends: 0% 0%
Risk free rate: 1.52% 1.29%
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 Company recognised a total charge through 
the income statement of £95,000 related to equity-settled share-based payment transactions in the year ended 
31 December 2015 (2014: £nil). 46
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
At 31 December 2015, the following unexercised share options to acquire Ordinary Shares were outstanding:
Year of grant Exercise period
Exercise price 
per share
2015 
No.
2014 
No.
2015 03/06/2018 – 02/06/2025 £1.625 1,078,000 –
2015 03/06/2018 – 23/12/2025 £1.69 275,000 –
The weighted average remaining life was nine years and six months (2014: nil years).
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 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:
2015 2014
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 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 2015 (2014: £nil).
At 31 December 2015, the following unexercised share options to acquire Ordinary Shares were outstanding:
Year of grant Exercise period
Exercise price 
per share
2015 
No.
2014 
No.
2009 01/01/2009 – 31/12/2019 £0.01 1,000,000 1,000,000
The weighted average remaining life was four years (2014: five 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.
2015 2014
Number of 
share options
Weighted 
average 
exercise price
Number of 
share options
Weighted 
average 
exercise price
Outstanding at the beginning of the year 1,260,000 £1.60 – –
Granted during the year – – 1,260,000 £1.60
Outstanding at the end of the year 1,260,000 £1.60 1,260,000 £1.60
Vested at the end of the year 700,000 280,000
Exercisable at the end of the year 700,000 280,000
26. Share-based payments continued Financial information Governance Strategic 
47
Ergomed plc Annual Report and Accounts 2015
Twenty thirty-sixths of the total amount of options awarded have vested by 31 December 2015, representing 700,000 
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 2015, the awards therefore had a remaining contractual life of eight years and four months.
The options were valued using a Black-Scholes option pricing model, using the following inputs:
Award date 18 April 2014
Fair value per share option: 47.79p
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 £193,000 (2014: £338,000). There are no outstanding liabilities.
Year of grant Exercise period
Exercise price 
per share
2015 
No.
2014 
No.
2014 18/04/2014 – 17 /04/2024 £1.60 1,260,000 1,260,000
The weighted average remaining life was eight years and four months (2014: nine years and four months).
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 2015
Financial 
instruments 
at fair value 
through 
profit and 
loss 
£000s
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
Investments 144 – – – 144 144
Trade receivables – 6,412 – – 6,412 6,412
Other receivables – 141 – – 141 141
Accrued income – 740 – – 740 740
Cash and cash equivalents – 3,974 – – 3,974 3,974
144 11,267 – – 11,411 11,411
Financial liabilities
Finance leases – – 5 7 12 12
Trade payables – – 2,381 – 2,381 2,381
Amounts owed to related parties – – 71 – 71 71
Other payables – – 381 – 381 381
Accruals – – 2,748 – 2,748 2,748
– – 5,586 7 5,593 5,593 48
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
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
Amounts receivable from related parties 14 – – 14 14
Other receivables 162 – – 162 162
Accrued income 715 – – 715 715
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
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 six months.
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
2015 
£000s
2014 
£000s
GBP 2,094 3,195
Euro 2,145 2,336
USD 5,126 3,203
Other 2,046 1,408
11,411 10,142
Financial liabilities
2015 
£000s
2014 
£000s
GBP 886 625
Euro 3,875 3,389
USD 249 274
Other 583 403
5,593 4,691
27. Financial instruments continued Financial information Governance Strategic 
49
Ergomed plc Annual Report and Accounts 2015
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.
2015
Strengthen 
+10% 
£000s
Weaken 
-10% 
£000s
Euro 157 (192)
USD (443) 542
Other (133) 162
(419) 512
2014
Strengthen 
+10% 
£000s
Weaken 
-10% 
£000s
Euro 95 (117)
USD (266) 325
Other (91) 112
(262) 320
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 fundraising, 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. 50
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
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 financial instruments measured subsequent to initial recognition at fair value comprise investments. The fair value 
hierarchy of these assets is Level 2. The valuation technique is market value, based on the most recent investment price. 
The Group did not have any other financial instruments that are measured subsequent to initial recognition at fair value. 
An analysis of the fair value hierarchy has therefore not been presented.
28. Acquisition of subsidiary – Sound Opinion Limited
On 26 May 2015, Ergomed plc acquired 100% of the issued share capital of Sound Opinion Limited, a leading provider of 
medical information services. Sound Opinion 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.
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
Final 
valuation 
£000s
Property, plant and equipment 2 – 2
Intangible assets – 210 210
Total non-current assets 2 210 212
Trade and other debtors 36 – 36
Accrued income 4 – 4
Cash and equivalents 62 – 62
Current assets 102 – 102
Trade and other creditors (33) – (33)
Deferred revenue (21) – (21)
Tax payable (24) – (24)
Deferred tax – (42) (42)
Financial liabilities (78) (42) (120)
Total identifiable net assets 26 168 194
Goodwill 374 (168) 206
Total consideration 400 – 400
Satisfied by:
Cash 320 – 320
Deferred consideration 80 – 80
Total consideration 400 – 400
Net cash outflow arising on acquisition
Cash consideration 320 – 320
Less: cash and cash equivalent balances acquired (62) – (62)
258 – 258
The fair value of the financial assets includes receivables with a fair value of £36,000 and a gross contractual value of 
£36,000. The best estimate at acquisition date of the contractual cash flows not to be collected is £nil.
Goodwill is valued at £206,000 which arises from the excess of purchase price of £400,000 over net assets of 
£194,000. None of the goodwill is expected to be deductible for income tax purposes.
Sound Opinion Limited contributed £211,000 revenue and £52,000 to the Group’s profit for the period between the 
date of acquisition and the balance sheet date.
27. Financial instruments continued Financial information Governance Strategic 
51
Ergomed plc Annual Report and Accounts 2015
If the acquisition of Sound Opinion Limited had been completed on the first day of the financial year, Group revenues 
for the period would have been £155,000 higher and Group profit would have been £45,000 higher.
Expenses incurred in relation to the acquisition of £54,000 have been charged as exceptional items in the Income 
statement (note 7).
29. Acquisition of subsidiary – Haemostatix Limited
On 24 May 2016, Ergomed plc acquired 100% of the issued share capital of Haemostatix Limited, a drug development 
company based in Nottingham, England with an innovative technology platform that has pioneered a new approach 
to controlling bleeding in a surgical setting based on a synthetic peptide that binds to the protein fibrinogen thereby 
inducing rapid blood clotting. This innovative technology platform is being used to develop a pipeline of topical 
products to treat surgical bleeding with further applications in trauma, tissue repair and regenerative medicine. 
Haemostatix Limited was acquired in order to advance the co-development part of Ergomed’s growth strategy through 
the development of its first wholly-owned development programme.
Consideration for the investment is comprised as follows:
£000s
Cash 800
Shares 6,181
Provisional deferred consideration 20,000
Total consideration 26,981
Net cash outflow arising on acquisition
Cash consideration 800
The provisional deferred consideration is contingent on meeting a combination of development milestones and sales 
targets, and may be settled in cash, loan notes or equity.
Owing to the limited time between acquisition and the presentation of these financial statements, the fair value of the 
deferred consideration has not yet been determined, no acquisition balance sheet is available and there has been 
insufficient time to complete an external valuation exercise of identifiable assets acquired and liabilities assumed. 
Accordingly, no preliminary assessment of identifiable assets acquired and liabilities assumed are presented.
A full fair value exercise of deferred consideration, identifiable assets acquired and liabilities assumed will be performed 
within the measurement period which ends on 23 May 2017.
30. Financial commitments
At 31 December 2015 the Group was committed to making the following payments under non-cancellable operating 
leases which fall due as follows:
Land and buildings Other
2015 
£000s
2014 
£000s
2015 
£000s
2014 
£000s
Within one year 284 389 57 67
Between two and five years 178 641 74 95
Over five years – – – 1
462 1,030 131 163
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 £118,000 (2014: £52,000). 
Contributions payable to the schemes at 31 December 2015 were £123,000 (2014: £98,000). 52
Ergomed plc Annual Report and Accounts 2015
Notes to the consolidated financial statements continued
For the year ended 31 December 2015
32. Related party transactions
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 and its subsidiaries were charged £160,000 (2014: 
£619,000) by Ergomed d.o.o. and its subsidiaries in respect of clinical research costs and other administration. At 
31 December 2015 a balance of £57,000 was owed by the Company and its subsidiaries to Ergomed d.o.o. in respect of 
these costs (2014: £6,000). In addition, there was payment on account made to Ergomed d.o.o. of £nil (2014: £14,000).
Chesyl Pharma Limited is a company owned by Rolf Stahel, who is a Director of the Company. As disclosed in the 
Directors’ remuneration report, during the year, the Company was charged consultancy fees of £54,000 (2014: 
£98,000) in relation to the services of Rolf Stahel, included in the remuneration paid to Rolf Stahel. At 31 December 
2015, amounts payable to Chesyl Pharma in relation to such consultancy services and associated expenses were £5,000 
(2014: £5,000).
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
On 4 May 2016 the Company announced the proposed acquisition of Haemostatix Limited (‘Haemostatix’) and a 
conditional placing of new Ergomed Ordinary Shares at a price of 140p per share, together with a broker option to allow 
investors to participate in the placing after the announcement. The acquisition of Haemostatix and the placing, 
including the broker option, became effective on 24 May 2016 after the passing of requisite resolutions at a General 
Meeting of the Company’s shareholders on 23 May 2016 and subsequent admission of the new shares to AIM.
The Company acquired 100% of the issued share capital of Haemostatix on a cash free/debt free basis for an initial 
consideration of £7.0 million to be satisfied by the payment of £0.8 million in cash and by the issue of 4,415,051 new 
Ergomed Ordinary Shares, representing a value of £6.2 million, based on the placing price of 140p per share. The 
Company has also agreed to advance to Haemostatix a loan of £1.0 million. In addition, deferred consideration of up to 
£20.0 million is payable, contingent on the achievement of certain milestones and sales targets. An additional sum may 
be payable in the event Ergomed is able to utilise certain existing tax losses that are currently available to Haemostatix.
Alongside the acquisition of Haemostatix, the Company placed 6,433,350 new Ergomed Ordinary Shares with 
institutional investors at a price of 140p per share to raise £9.0 million (before expenses). Pursuant to an option granted 
to its brokers, a further 127,500 new Ergomed Ordinary Shares were placed with institutional shareholders bringing the 
total number of new Ergomed Ordinary Shares issued and proceeds (before expenses) to 6,560,850 and £9.2 million 
respectively. Financial information Governance Strategic 
53
Ergomed plc Annual Report and Accounts 2015
Note
2015 
£000s
2014 
£000s
Non-current assets
Intangible assets 37 4 –
Property, plant and equipment 38 8 8
Investments 39 10,557 10,569
Deferred tax asset 40 342 304
10,911 10,881
Current assets
Trade and other receivables 41 6,824 4,886
Cash and cash equivalents 42 1,407 3,430
8,231 8,316
Total assets 19,142 19,197
Current liabilities
Trade and other payables 43 (5,945) (5,138)
Deferred revenue (773) (586)
Total current liabilities (6,718) (5,724)
Net current assets 1,513 2,592
Non-current liabilities
Deferred tax liability 40 (2) (1)
Total liabilities (6,720) (5,725)
Net assets 12,422 13,472
Equity 
Share capital 44 288 288
Share premium account 45 12,342 12,342
Share-based payment reserve 46 650 362
Translation reserve 46 (1,046) (235)
Retained earnings 188 715
Total equity 12,422 13,472
The notes on pages 56 to 67 form an integral part of these financial statements.
Approved by the Board of Directors and authorised for issue on 3 June 2016.
S Stamp
Director
Company Registration No. 04081094
Company balance sheet
As at 31 December 2015 54
Ergomed plc Annual Report and Accounts 2015
Share 
capital 
£000s
Share 
premium 
account 
£000s
Share-based 
payment 
reserve 
£000s
Translation 
reserve 
£000s
Retained 
earnings 
£000s
Total 
£000s
Balance at 31 December 2013 200 – 24 93 958 1,275
Loss for the year – – – – (541) (541)
Other comprehensive income for the year – – – (328) – (328)
Total comprehensive income for the year – – – (328) (541) (869)
Share issues during the year (net of expenses) 88 12,342 – – – 12,430
Share-based payment charge for the year – – 338 – – 338
Deferred tax credit taken directly to equity – – – – 298 298
Balance at 31 December 2014 288 12,342 362 (235) 715 13,472
Loss for the year – – – – (528) (528)
Other comprehensive income for the year – – – (811) – (811)
Total comprehensive income for the year – – – (811) (528) (1,339)
Share-based payment charge for the year – – 288 – – 288
Deferred tax credit taken directly to equity – – – – 1 1
Balance at 31 December 2015 288 12,342 650 (1,046) 188 12,422
Company statement of changes in equity
For the year ended 31 December 2015 Financial information Governance Strategic 
55
Ergomed plc Annual Report and Accounts 2015
Note
2015 
£000s
2014 
£000s
Cash flows from operating activities
Loss before taxation (563) (520)
Adjustment for:
Amortisation and depreciation 4 5
Loss on disposal of fixed assets – 2
Share-based payment charge 288 338
Acquisition of shares for non-cash consideration (142) –
Exchange adjustments (198) (75)
Exceptional items 54 499
Finance costs – 2
Operating cash flow before changes in working capital and provisions (557) 251
Increase in trade and other receivables (1,807) (1,202)
Increase in trade and other payables 914 1,827
Cash (utilised by)/generated from operations (1,450) 876
Taxation paid (149) (300)
Net cash (outflow)/inflow from operating activities (1,599) 576
Investing activities
Acquisition of intangible assets (4) –
Acquisition of property, plant and equipment (5) (3)
Investment in joint venture – (40)
Acquisition of subsidiaries including expenses of acquisition (415) (7,248)
Net cash outflow from investing activities (424) (7,291)
Financing activities
Issue of new shares – 11,000
Expenses of fundraising – (1,784)
Finance costs paid – (2)
Repayment of borrowings – (22)
Net cash inflow from financing activities – 9,192
Net (decrease)/increase in cash and cash equivalents (2,023) 2,477
Cash and cash equivalents at start of the year 3,430 953
Cash and cash equivalents at end of year 42 1,407 3,430
Company cash flow statement
For the year ended 31 December 2015 56
Ergomed plc Annual Report and Accounts 2015
Notes to the company financial statements
For the year ended 31 December 2015
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 £188,000 (2014: £200,000) 
against trade receivables in note 41.
36. Loss 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 £528,000 (2014: £541,000).
37. Intangible assets
Software 
£000s
Cost
At 1 January 2014 –
Re-allocation from Property, plant and equipment 88
At 1 January 2014 88
Translation movement (10)
Additions 4
At 31 December 2015 82
Depreciation 
At 1 January 2014 and 1 January 2015 –
Re-allocation from Property, plant and equipment 88
Translation movement –
At 1 January 2015 88
Translation movement (10)
At 31 December 2015 78
Net book value
At 31 December 2015 4
At 31 December 2014 – Financial information Governance Strategic 
57
Ergomed plc Annual Report and Accounts 2015
Intangible assets represent software currently in use by the business. The re-allocation from Property, plant and 
equipment during 2014 related to Software that had been included as Property, plant and equipment in prior periods 
(note 38).
38. Property, plant and equipment
Fixtures and 
fittings 
£000s
Motor 
vehicles 
£000s
Computer 
equipment 
£000s
Total 
£000s
Cost
At 1 January 2014 89 2 24 115
Re-allocation to Intangible assets (88) – – (88)
Additions – – 3 3
Disposals – (2) (4) (6)
At 1 January 2015 1 – 23 24
Additions – – 4 4
Translation movement – – (1) (1)
At 31 December 2015 1 – 26 27
Depreciation 
At 1 January 2014 89 1 12 102
Re-allocation to Intangible assets (88) – – (88)
Disposals – (2) (2) (4)
Charge for the year – 1 4 5
Translation movement – – 1 1
At 1 January 2015 1 – 15 16
Charge for the year – – 4 4
Translation movement – – (1) (1)
At 31 December 2015 1 – 18 19
Net book value
At 31 December 2015 – – 8 8
At 31 December 2014 – – 8 8
The re-allocation to Intangible assets during 2014 related to Software that had been included as Property, plant and 
equipment in prior periods, and was 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
Dilaforette 
Holding AB 
£000s
Ergomed 
Clinical 
Research 
Saudi Arabia 
£000s
Total 
£000s
Cost
At 1 January 2014 1,782 – – 1,782
Additions 9,000 – 40 9,040
Translation movement (252) – (1) (253)
At 1 January 2015 10,530 – 39 10,569
Additions 441 142 – 583
Translation movement (596) 2 (1) (595)
At 31 December 2015 10,375 144 38 10,557
Provision for impairment
At 31 December 2014 and 31 December 2015 – – – –
Net book value
At 31 December 2015 10,375 144 38 10,557
At 31 December 2014 10,530 – 39 10,569 58
Ergomed plc Annual Report and Accounts 2015
Notes to the company financial statements continued
For the year ended 31 December 2015
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%
Ergomed Clinical Research Services T aiwan 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.
1
Croatia Ordinary 100%
Sound Opinion Limited
2
United Kingdom Ordinary 100%
Principal activity – dormant
Place of incorporation  
and operation Class Holding
Ergomed Clinical Research Limited United Kingdom Ordinary 100%
1 This company is a wholly owned subsidiary of PrimeVigilance Limited.
2 This company was acquired by the Company on 26 May 2015, (note 28).
There are no significant restrictions on the ability of the Group to access or use assets and settle liabilities.
Dilaforette Holding AB
Under the co-development agreement with Dilaforette AB, the Group receives shares in return for its contribution to 
the co-development programme. During the year, shares valued at £142,000 were issued to the Company.
Ergomed Clinical Research Saudi Arabia
On 22 July 2014, the Group invested £40,000 for a 50% holding in a joint venture in Saudi Arabia – ‘Ergomed Clinical 
Research Saudi Arabia’. The operation is still in the set up phase 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
Tax losses 
£000s
Timing 
differences 
£000s
Total 
£000s
At 1 January 2014 – – –
Credit to profit or loss – 6 6
Credit direct to equity – 298 298
At 1 January 2015 – 304 304
Credit to profit or loss 3 34 37
Credit direct to equity – 1 1
At 31 December 2015 3 339 342
39. Investments continued Financial information Governance Strategic 
59
Ergomed plc Annual Report and Accounts 2015
Deferred tax liabilities
Timing 
differences 
£000s
At 1 January 2014 –
Charge to profit or loss (1)
1 January 2015 (1)
Charge to profit or loss (1)
At 31 December 2015 (2)
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:
2015 
£000s
2014 
£000s
Deferred tax assets – Timing differences 339 304
Deferred tax assets – Recognised losses 3 –
Deferred tax liabilities – ACAs (2) (1)
Net deferred tax assets 340 303
41. Trade and other receivables
2015 
£000s
2014 
£000s
Trade receivables 3,820 2,741
Amounts receivable from related parties – 14
Amounts receivable from Group companies 665 897
Other receivables 157 126
Prepayments 98 102
Accrued income 1,831 884
Corporation tax receivable 253 122
6,824 4,886
Included in trade receivables are the following amounts that are past due at the reporting date by the following periods.
2015 
£000s
2014 
£000s
Less than 30 days overdue 962 844
31 to 60 days overdue 38 66
61 to 90 days overdue 31 4
More than 90 days overdue 281 433
1,312 1,347
Movement in the provision for doubtful debts.
2015 
£000s
2014 
£000s
Balance at the beginning of the year 200 –
Impairment losses recognised – 200
Translation movement (12) –
Balance at the end of the year 188 200
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. 60
Ergomed plc Annual Report and Accounts 2015
Notes to the company financial statements continued
For the year ended 31 December 2015
42. Cash and cash equivalents
2015 
£000s
2014 
£000s
Cash at bank 1,407 3,430
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:
2015 
£000s
2014 
£000s
GBP 152 1,946
Euro 270 809
USD 959 670
Other 26 5
1,407 3,430
43. Trade and other payables
2015 
£000s
2014 
£000s
Trade creditors 1,498 1,743
Amounts payable to related parties 29 5
Amounts payable to Group companies 1,917 1,867
Social security and other taxes 22 28
Other payables 90 39
Accruals 2,389 1,456
5,945 5,138
The carrying amount of the Company’s trade and other payables approximates to their fair value at the balance sheet 
date and are uncovered.
44. Share capital
2015 
No.
2014 
No.
Allotted, called up and fully paid
Ordinary Shares of £0.01 each
Balance at 1 January 28,750,000 20,000,000
Shares issued during the year – 8,750,000
Balance at 31 December 28,750,000 28,750,000
2015 
£000s
2014 
£000s
Allotted, called up and fully paid
Ordinary Shares of £0.01 each
Balance at 1 January 288 200
Shares issued during the year – 88
Balance at 31 December 288 288
There were no shares issued during the year. During 2014, 6,875,000 ordinary shares of £0.01 each (‘Ordinary Shares’) 
were issued at a price of £1.60 per share as part of the Initial Public Offering by the Company. A further 1,875,000 
Ordinary Shares were issued as part consideration for the acquisition of PrimeVigilance Limited. Financial information Governance Strategic 
61
Ergomed plc Annual Report and Accounts 2015
45. Share premium account
2015 
£000s
2014 
£000s
Balance at 1 January 12,342 –
Share issue during the year – 13,912
Expenses of share issue during the year – (1,570)
Balance at 31 December 12,342 12,342
No share premium arose during the year. The share premium arising during 2014 related 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. Expenses of £1,570,000 relating to the 
issue of shares were deducted from the Share premium account. Additional expenses of £299,000 were charged to the 
income statement as Exceptional items (note 7).
46. 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 47) 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.
47. Share-based payments
The Company operates three share option schemes:
 – the Ergomed plc Long Term Incentive Plan;
 – the Unapproved Executive Share Option Scheme 2007; and
 – 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) Qualifying EMI 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.
2015 2014
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 1,368,000 £1.64 – –
Lapsed during the year (15,000) £1.625 – –
Outstanding at the end of the year 1,353,000 £1.64 – –
Vested at the end of the year – –
Exercisable at the end of the year – – 62
Ergomed plc Annual Report and Accounts 2015
Notes to the company financial statements continued
For the year ended 31 December 2015
Options were valued using a Black-Scholes option pricing model, using the following inputs:
Award date 3 June 2015 24 December 2015
Fair value per share option: 44.68p 42.38p
Share price: £1.625 £1.660
Exercise price: £1.625 £1.660
Volatility: 28% 27%
Expected life: 5 years 5 years
Expected dividends: 0% 0%
Risk free rate: 1.52% 1.29%
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 Company recognised a total charge through 
the income statement of £95,000 related to equity-settled share-based payment transactions in the year ended 
31 December 2015 (2014: £nil).
At 31 December 2015, the following unexercised share options to acquire Ordinary Shares were outstanding:
Year of grant Exercise period
Exercise price 
per share
2015 
No.
2014 
No.
2015 03/06/2018 – 02/06/2025 £1.625 1,078,000 –
2015 03/06/2018 – 23/12/2025 £1.69 275,000 –
The weighted average remaining life was nine years and six months (2014: nil years).
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 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:
2015 2014
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 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 2015 (2014: £nil).
At 31 December 2015, the following unexercised share options to acquire Ordinary Shares were outstanding:
Year of grant Exercise period
Exercise price 
per share
2015 
No.
2014 
No.
2009 01/01/2009 – 31/12/2019 £0.01 1,000,000 1,000,000
The weighted average remaining life was four years (2014: five years).
47. Share-based payments continued Financial information Governance Strategic 
63
Ergomed plc Annual Report and Accounts 2015
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.
2015 2014
Number of  
share options
Weighted 
average  
exercise price
Number of  
share options
Weighted 
average  
exercise price
Outstanding at the beginning of the year 1,260,000 £1.60 – –
Granted during the year – – 1,260,000 £1.60
Outstanding at the end of the year 1,260,000 £1.60 1,260,000 £1.60
Vested at the end of the year 700,000 280,000
Exercisable at the end of the year 700,000 280,000
Twenty thirty-sixths of the total amount of options awarded have vested by 31 December 2015, representing 700,000 
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 2015, the awards therefore had a remaining contractual life of eight years and four months.
The options were valued using a Black-Scholes option pricing model, using the following inputs:
Award date 18 April 2014
Fair value per share option: 47.79p
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 £193,000 (2014: £338,000). There are no outstanding liabilities.
Year of grant Exercise period
Exercise price 
per share
2015 
No.
2014 
No.
2014 18/04/2014 – 17 /04/2024 £1.60 1,260,000 1,260,000
The weighted average remaining life was eight years and four months (2014: nine years and four months).
48. 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. 64
Ergomed plc Annual Report and Accounts 2015
Notes to the company financial statements continued
For the year ended 31 December 2015
Categories of financial instruments
31 December 2015
Financial 
instruments 
at fair value 
through 
profit and 
loss 
£000s
Loans and 
receivables 
£000s
Current 
financial 
liabilities at 
amortised 
cost 
£000s
Carrying 
amount 
£000s
Fair value 
£000s
Financial assets
Investments 144 – – 144 144
Trade receivables – 3,820 – 3,820 3,820
Amounts receivable from Group companies – 665 – 665 665
Other receivables – 34 – 34 34
Accrued income – 582 – 582 582
Cash and cash equivalents – 1,407 – 1,407 1,407
144 6,508 – 6,652 6,652
Financial liabilities
Trade payables – – 1,498 1,498 1,498
Amounts owed to related parties – – 29 29 29
Amounts owed to Group companies – – 1,917 1,917 1,917
Other payables – – 90 90 90
Accruals – – 2,389 2,389 2,389
– – 5,923 5,923 5,923
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
Amounts receivable from related parties 14 – 14 14
Amounts receivable from Group companies 897 – 897 897
Other receivables 19 – 19 19
Accrued income 600 – 600 600
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
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 six months.
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.
48. Financial instruments continued Financial information Governance Strategic 
65
Ergomed plc Annual Report and Accounts 2015
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
2015 
£000s
2014 
£000s
GBP 152 2,226
Euro 2,264 2,721
USD 4,009 2,748
Other 227 6
6,652 7,701
Financial liabilities
2015 
£000s
2014 
£000s
GBP 356 128
Euro 5,318 4,638
USD 197 113
Other 52 231
5,923 5,110
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.
2015
Strengthen 
+10% 
£000s
Weaken 
-10% 
£000s
Euro 277 (339)
USD (346) 424
Other (16) 19
(85) 104
2014
Strengthen 
+10% 
£000s
Weaken 
-10% 
£000s
Euro 174 (213)
USD (239) 293
Other 20 (25)
(45) 55
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. 66
Ergomed plc Annual Report and Accounts 2015
Notes to the company financial statements continued
For the year ended 31 December 2015
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 fundraising, 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 financial instruments measured subsequent to initial recognition at fair value comprise investments. The fair value 
hierarchy of these assets is Level 2. The valuation technique is market value, based on the most recent investment price. 
The Company did not have any other financial instruments that are measured subsequent to initial recognition at fair 
value. An analysis of the fair value hierarchy has therefore not been presented.
49. Financial commitments
At 31 December 2015 the Company was committed to making the following payments under non-cancellable operating 
leases which fall due as follows:
Land and buildings Other
2015 
£000s
2014 
£000s
2015 
£000s
2014 
£000s
Within one year – – 7 8
Between two and five years – – 5 12
– – 12 20
48. Financial instruments continued Financial information Governance Strategic 
67
Ergomed plc Annual Report and Accounts 2015
50. 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 £35,000 (2014: £19,000). 
Contributions payable to the schemes at 31 December 2015 were £nil (2014: £5,000). 68
Ergomed plc Annual Report and Accounts 2015
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, to ensure that 2015 results and 2014 results are presented on a comparable basis. 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 £0.6 million, a non-cash share-based payment charge of £0.3 million and an increased 
amortisation charge of £0.4 million associated with the intangible assets associated with the acquisitions of Ergomed 
Virtuoso Sarl and PrimeVigilance Limited.
Pro forma Consolidated income statement – 2014
Adjusted
1
Ergomed 
£000s
PrimeVigilance
2
£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 (73) (18) (91)
Other operating income 54 2 56
Operating profit 2,356 334 2,690
Finance costs (2) – (2)
Profit before taxation 2,354 334 2,688
Taxation (330) (35) (365)
Profit for the year 2,024 299 2,323
EBITDA 2,429 352 2,781
1 The results of Ergomed plc for 2014 are adjusted to remove the profit margin on services provided by a related party, exceptional costs arising from 
the IPO and acquisition of PrimeVigilance Limited, share-based payment charge and amortisation of acquired revalued intangible assets.
2 The results of PrimeVigilance for H1 2014, being the period prior to acquisition in 2014.
Pro forma financial information
Unaudited and unreviewed 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
Haemostat a drug or device that is used to stop bleeding from surgical or traumatic wounds
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
Peptide a molecule composed of amino acids
Periodic safety update reports 
(‘PSURs’)
a pharmacovigilance document intended to provide an evaluation of the 
risk-benefit balance of a medicinal product. It is submitted by marketing 
authorisation holders at defined time points during the post-authorisation 
phase
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 Ergomed plc Annual Report and Accounts 2015
Ergomed plc
The Surrey Research Park
26 Frederick Sanger Road
Guildford
Surrey 
GU2 7YD 
www.ergomedplc.com