Instem plc Trading Update and Notice of Results (1328X)
January 08 2014 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 1328X
Instem plc
08 January 2014
8 January 2014
Instem plc
("Instem")
Trading Update and Notice of Results
Instem plc (AIM: INS), a leading provider of IT solutions to the
global early development healthcare market, announces its pre close
trading update for the year ended 31 December 2013.
At the time of our update on 22 November 2013 when we acquired
Perceptive Instruments Limited, we noted that the outcome for the
full year would rely on the placing of certain anticipated
contracts. Several of these contracts were secured, however
contractual discussions regarding a single perpetual licence with
one large potential client remained ongoing at the year end and
consequently results for the year ended 31 December 2013 are
expected to be below market forecasts with profitability in line
with the year ended 31 December 2012. Discussions with the client
are on-going and, if successfully concluded, will increase the
Board's expectations for 2014.
Overall order intake in the final quarter of the year was
encouraging, with a mix of perpetual licence business and four
additional Software-as-a-Service (SaaS) deals, the latter making
negligible financial contribution in 2013 but will enhance
performance in later years. We see the trend in SaaS sales as
encouraging and going forward will help to balance the impact of
single perpetual licence sales and improve future visibility.
High renewal rates for recurring revenue and receipts from new
business ensure Instem's balance sheet remains strong, with net
cash ahead of market expectations at GBP2.0m at 31 December 2013
(31 December 2012: GBP2.2m) after investing GBP1.7m on acquisitions
during 2013.
Contracts signed were across all of Instem's product lines,
including:
-- Two of the SaaS deals being with top 10 pharma companies
-- Further momentum for the growing Centrus product suite
-- Strong order intake for our recently acquired clinical business
We are also pleased to report that following a strong period of
trading, the first tranche of deferred consideration in respect of
the acquisition of Logos Technologies is due at the end of January
2014, comprising GBP200,000 of cash and GBP250,000 in ordinary
shares in Instem.
Instem will announce preliminary results for the year ended 31
December 2013 on 26 March 2014.
Phil Reason, CEO of Instem plc, commented: "Whilst it is
disappointing that results for 2013 are expected to be below
expectations due to the extended contract negotiations noted above,
overall the year has seen Instem significantly enhance its market
position. The new SaaS deals are particularly pleasing as we are
increasingly steering clients and prospects in that direction.With
the benefit of a full year's contribution from both the Logos
Technologies and more recent Perceptive Instruments acquisitions,
we look forward with confidence to 2014."
For further information, please contact:
Instem plc +44 (0) 1785 825 600
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser
& Broker) +44 (0) 20 7496 3000
Richard Lindley
Nick Owen
Newgate Threadneedle +44 (0) 20 7653 9850
Fiona Conroy
Caroline Evans-Jones
Jasper Randall
About Instem plc
Instem is a leading supplier of IT applications to the early
development healthcare market delivering compelling solutions for
data collection, management and analysis across the R&D
continuum. Instem applications are used by customers worldwide,
meeting the rapidly expanding needs of life science and healthcare
organisations for data-driven decision making leading to safer,
more effective products.
Instem's established portfolio of software solutions increases
client productivity in drug development by automating study-related
processes and enabling high integrity data sharing. The product
suite also offers the unique ability to generate new knowledge
through the extraction and harmonisation of actionable scientific
information.
Instem supports its clients through full service offices in the
United States, United Kingdom and China with additional locations
in India and a full service distributor based in Japan.
To learn more about Instem solutions and its mission, please
visit www.instem.com or its investor centre
http://investors.instem.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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