Instem plc Half Year Trading Update (4016T)
July 20 2020 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 4016T
Instem plc
20 July 2020
Instem plc
("Instem" or the "Company")
Half Year Trading Update
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 2020 (the "Period").
Financial Highlights
The Company continued to perform well across all areas of the
business despite the wider backdrop and macro impact of COVID-19.
Trading for the Period was in line with the Board's expectations .
H1 2020 revenues increased by approximately 20% with like-for-like
revenue growth (excluding the Leadscope acquisition in November
2019) of approximately 12%. Operational cash generation was strong,
with a closing cash balance at 30 June 2020 of GBP9.1m (30 June
2019: GBP6.0m).
The oversubscribed GBP 15.75m fundraise ( GBP 15m net of
expenses), as approved by shareholders on 16 July 2020 and
completed post period-end, provides significant capital to
accelerate the Group's acquisition strategy, with a number of
potential compelling opportunities for bolt on acquisitions and
more substantial targets having been identified.
Operational Highlights
The entire Instem team successfully transitioned to home working
during the period with very little impact on operational
effectiveness. Most clients continue to operate successfully with
limited COVID-19 related impact.
As previously highlighted in our 2019 Final Results (3(rd) June
2020), there was a small negative impact due to the inability to
undertake client site based professional services work and secure
new software licenses in the academic segment during the Period.
However, Leadscope recorded a strong performance, in part due to
revenue synergies being realised quicker than initially
anticipated. The addition of Leadscope has broadened the Company's
offering, strengthening its capabilities in high-demand AI-based
in-silico R&D and continuing to diversify its revenue
streams.
Outlook
The Company continues to trade in line with the Board's
expectations and, given the continued strong organic and
acquisitive growth potential, the Board is confident that the
Company is well positioned to take advantage of opportunities that
arise throughout the remainder of the year and beyond in existing
and adjacent markets. With a scalable platform in place and broad
portfolio of products and services, the aim is to further grow
market share, margins and revenue visibility.
Investor Presentation
The Company will be hosting a presentation through the digital
platform Investor Meet Company at 16.30 (BST) on Thursday 23 July.
Investors can sign up to Investor Meet Company for free and add
Instem via the following link
https://investormeetcompany.com/instem-plc/register-investor or for
more information please contact Walbrook PR at
instem@walbrookpr.com .
Phil Reason, CEO of Instem plc, commented: "Trading during the
Period highlighted the resilience of our operations and the
dedication of the entire Instem team as the Company continued to
grow despite the COVID-19 backdrop. We have been delighted to
directly contribute to our clients' COVID-19 vaccine and
therapy-related R&D activities and remain committed to
prioritising these efforts over the second half. Following
completion of the fundraise, we also aim to drive revenues and
margins as we look to further consolidate the market."
For further information, please contact:
Instem plc Via Walbrook
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser
& Broker) +44 (0) 20 7496 3000
Peter Steel
Rachel Hayes
Walbrook Financial PR +44 (0) 20 7933 8780
Tom Cooper instem@walbrookpr.com
Nick Rome
Nicholas Johnson
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 over 500 customers worldwide,
including all the largest 25 pharmaceutical companies, enabling
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 products and services address aspects of the entire drug
development value chain, from discovery through to market launch.
Management estimate that over 50% of all drugs on the market have
been through some part of Instem's platform at some stage of their
development.
To learn more about Instem solutions and its mission, please
visit www.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
UPDBUGDRSUBDGGR
(END) Dow Jones Newswires
July 20, 2020 02:00 ET (06:00 GMT)
Instem (LSE:INS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Instem (LSE:INS)
Historical Stock Chart
From Jul 2023 to Jul 2024