Instem plc Trading Update (6268Z)
January 26 2022 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 6268Z
Instem plc
26 January 2022
Instem plc
("Instem", the "Group" or the "Company")
Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, announces a trading update for the
year ended 31 December 2021 (the "Period").
Financial Highlights
Year Ended 2021 (Est)* 2020 (Actual) Growth Growth
31 December GBPm GBPm GBPm %
Revenue (like-for-like) 30.0 28.2 1.8 6.4%
Revenue (from acquisitions) 16.1 n/a n/m n/m
Total Revenue 46.1 28.2 17.9 64%
*Estimate, subject to audit
Trading during the Period was in line with the Board's
expectations reflecting both strong organic and acquisition-driven
growth, with the Company completing three acquisitions during the
year. Like-for-like revenue growth of approximately 6.4% (over 10%
growth on a constant currency basis) was driven by both increased
cross-selling and further new client wins, while the transition to
a Software-as-a-Service ("SaaS") based model continued to underpin
organic margin growth and increased revenue visibility.
Combined with the acquisitions of The Edge Software Consultancy
Ltd ("The Edge"), D-Wise Technologies, Inc ("d-Wise") , and PDS
Pathology Data Systems Ltd ("PDS"), all of which only contributed
for part of the Period, total revenues grew by c.64%.
The Company continued to generate strong profits and operating
cash during the Period, with a closing cash balance of GBP15.1m as
at 31 December 2021.
Operational Highlights
The acquisitions of The Edge, d-Wise and PDS, which are all
integrating well, transformed the scale of the business, broadening
its reach across the drug discovery and development lifecycle, as
well as strengthening relationships with existing clients. As
previously announced when acquired, all three acquisitions are
expected to be earnings enhancing in FY21 and have added strong
management teams and synergies to the existing business and client
base.
Organic growth was supported by strong market trends, and a
clear preference for new clients to deploy Instem's software using
a SaaS model. Momentum from the first half continued throughout the
remainder of the year with revenue particularly strong in North
America and China, where successful early-phase R&D is
delivering a healthy pipeline of drug candidates.
Outlook
The Company remains well placed to take advantage of a growing
pipeline of opportunities generated by new and existing clients.
Given the positive market backdrop, t he Company's proven platform
and continued strong growth trajectory, the Board is confident that
the Company will continue to build organically on recent momentum.
Whilst, in the near term, the Company is focusing on the
integration of recent acquisitions, it continues to evaluate
potential acquisition opportunities in existing and closely related
adjacent market areas.
Phil Reason, CEO of Instem plc, said: "We are delighted with the
tremendous performance of the Instem team during what was an
extremely busy period for the Company. As well as adding three high
quality businesses to the Group, which are integrating well, we
continued to improve all key metrics within existing
operations.
"We exit the Period stronger than ever, with increased scale and
strong relationships across all our target client segments. These
will allow us to continue to grow, as we deliver ever-greater
impacts, helping reduce cost and improve timelines within our
clients' life sciences discovery and development activities."
For further information, please contact:
Instem plc Via Walbrook
Phil Reason, CEO
Nigel Goldsmith, CFO
Singer Capital Markets (Nominated
Adviser & Broker) +44 (0) 20 7496 3000
Peter Steel
Alex Bond
Rachel Hayes
Stifel Nicolaus Europe Limited (Joint
Broker) +44 (0) 20 7710 7600
Ben Maddison
Alex Price
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, Regulatory Submissions, Clinical Trial Acceleration,
and Informatics-based Insight Generation.
Instem solutions are in use by over 700 customers worldwide,
including all of 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 during their
development.
To learn more about Instem solutions and its mission, please visit www.instem.com
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END
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