Instem plc Half Year Trading Update (8417U)
August 04 2022 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 8417U
Instem plc
04 August 2022
Instem plc
("Instem", the "Group" or the "Company")
Half Year Trading Update
Strong organic and inorganic growth with an over 60% increase in
recurring software revenue
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, announces a positive trading update
for the six months to 30 June 2022 ("H1 2022").
Financial Highlights
Having completed the acquisitions of The Edge Software
Consultancy Ltd ("The Edge"), d-Wise Technologies, Inc ("d-wise")
and PDS Pathology Data Systems Ltd during the last financial year
(together, the "Acquisitions"), H1 2022 is the first reporting
period in which they all contributed fully.
Combined organic and inorganic revenue for H1 2022 is expected
to be in the region of GBP27.6m (H1 2021: GBP19.8m), an increase of
approximately 39%. In addition, recurring software revenue grew by
over 60% in the same period.
Consistent with the outlook commentary in our FY21 results,
growth in H1 2022 operating profit is expected to be at a lower
rate than overall revenue growth on account of inflationary
pressures, which led to increased rates of remuneration for staff
across the Group. This will be partially mitigated in 2022 via
price increases that were announced in late April 2022.
The Group's balance sheet remains strong, with closing cash at
30 June 2022 of GBP10.3m and the Group retains the flexibility to
execute on acquisition opportunities as they arise.
Operational Highlights
Despite wider global macro-economic challenges, Group growth was
supported by a robust underlying life sciences research and
development market, and we have continued to experience demand for
our solutions across the entire drug development value chain .
The earn-out periods for d-wise and The Edge have now completed
with both earn-out targets met in full. The integration of the
Acquisitions is also now substantially complete.
Outlook
The Company remains optimistic about the wider market
opportunity - especially given its broader reach following the
integration of the Acquisitions. With a scalable platform in place
and significant opportunities, the Board is confident that the
enlarged group will continue to deliver growth across all key
financial and operational metrics. We are therefore confident that
the Group will deliver on the Board's expectations for the FY22
financial year.
Phil Reason, CEO of Instem, commented: "Consistent delivery is
key and we are delighted with the continued successes of our
organic and acquisitive growth strategies. Visibility for H2 has
improved through increased recurring revenue, the value of the
order backlog for professional and outsourced services and reduced
growth in staff numbers which in turn reflects a higher gross
margin revenue mix."
For further information, please contact:
Instem plc Via Walbrook
Phil Reason, CEO
Nigel Goldsmith, CFO
Singer Capital Markets (Nominated Adviser
& Joint 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
Richard Short
Walbrook Financial PR +44 (0) 20 7933 8780
Tom Cooper instem@walbrookpr.com
Nick Rome
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 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
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END
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