Instem plc Half Year Trading Update (4510F)
July 15 2019 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 4510F
Instem plc
15 July 2019
Instem plc
("Instem", the "Company" or the "Group")
Half Year Trading Update
All business areas performing well with 100% increase in SEND
outsourced services revenue
Positive outlook, with full year performance expected to be in
line with expectations
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, is pleased to announce a trading
update for the six months to 30 June 2019 (the "period").
Financial Highlights
All three areas of the business, Data Collection, Informatics
and Regulatory Solutions performed well during the period,
resulting in c.10% year-on-year revenue growth.
Software-as-a-Service ("SaaS") based revenue pleasingly gained
greater traction than expected during the period as more new
customers chose SaaS subscriptions over perpetual licensing and a
growing number of existing clients moved from on-premise
deployments to SaaS, as planned. This increased SaaS revenue
contribution has marginally reduced year-on-year total revenue
growth for the period, due to the displacement of one-off licenses,
however forward revenue visibility continues to increase as the
Company enters the second half of the year. There was a related
short-term impact on earnings but operating cashflow has been
particularly strong with net cash at 30 June 2019 of GBP6.0m (FY18:
GBP3.7m).
Operational Highlights
The positive market backdrop and growth in the size of the
global pharmaceutical R&D pipeline resulted in all three
business areas delivering positive operational progress during the
period. Increased new customer wins in the Data Collection
business, alongside continued growth in existing customer volumes
across the Company's Informatics and Regulatory Solutions
technology enabled services, contributed to this performance. The
Asia-Pacific region has again been a growing source of new
business.
Revenue growth in excess of 20% from the Company's augmented
intelligence Informatics services demonstrated the increasing
market appetite for sophisticated in-silico approaches to
accelerate and improve on traditional pharmaceutical R&D
processes.
Furthermore, Instem's Regulatory Solutions business continues to
lead the FDA (Food and Drug Administration) mandated market with
its technology enabled outsourced services, which deliver
electronic submissions using SEND (the Standard for the Exchange of
Nonclinical Data), with revenue increasing over 100% compared to H1
2018.
Outlook
The Company continues to build a healthy pipeline of new
business, with the number of individual transactions increasing
significantly year-on-year across all sectors of the life sciences
industry. Importantly, further diversification of revenue by both
type and geography is expected to continue to benefit performance
through the remainder of the year.
Phil Reason, CEO of Instem plc, commented:
"The business has performed well during the period with above
average growth in new data collection clients and technology
enabled outsourced services growing strongly."
"Furthermore, it was particularly pleasing to see a faster rate
of transition than anticipated from perpetual software licensing to
SaaS subscriptions. We believe our SaaS value proposition offers
both Instem and our customers enduring benefits and increases
shareholder value as the visibility of our revenue continues to
improve."
"The Board expects that full-year performance will be in line
with expectations."
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
Rachel Hayes
Alex Bond
Walbrook Financial PR +44 (0) 20 7933 8000
Paul Cornelius instem@walbrookpr.com
Nick Rome
Sam Allen
About Instem
Instem is a leading provider of IT solutions & services to
the life sciences market delivering compelling solutions for Study
Management and Data Collection; Regulatory Solutions for
Submissions and Compliance; and Informatics-based Insight
Generation.
Instem solutions are in use by customers worldwide and enable
our clients to bring life enhancing products to market faster.
Instem's portfolio of software solutions increases client
productivity by automating study-related processes while offering
the unique ability to generate new knowledge through the extraction
and harmonisation of actionable scientific information.
Instem supports over 500 clients through offices in the United
States, United Kingdom, France, Japan, China and India.
To learn more about Instem solutions and its mission, please
visit instem.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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