Unaudited Full Year Results
28 March 2017
("Instem", the "Company" or the "Group")
Unaudited Full Year Results
Instem (AIM: INS.L), a leading provider of IT solutions to the global early development healthcare market, announces its unaudited full year results for the year ended 31 December 2016.
- Revenues increased 12% to £18.3m (2015: £16.3m)
- Recurring revenues increased 21% to £12.1m (2015: £10.0m)
- Software as a Service (SaaS) revenues increased 38% to £2.9m (2015: £2.1m)
- EBITDA* of £1.3m (2015: £2.5m)
- Adjusted** profit before tax of £0.7m (2015: £1.7m)
- Reported profit before tax of £0.02m (2015: loss before tax of £0.4m)
- Basic earnings per share of 6.9p (2015: loss of 3.5p)
- Adjusted** fully diluted earnings per share of 11.2p (2015: 12.9p)
- Net cash balance as at 31 December 2016 of £4.2m (2015: £2.2m)
*Earnings before interest, tax, depreciation, amortisation and non-recurring costs.
**After adjusting for the effect of foreign currency exchange on the revaluation of inter-company balances included in finance income/(costs), non-recurring items and amortisation of intangibles on acquisitions. Profit is adjusted in this way to provide a clearer measure of underlying operating performance.
- Oversubscribed placing to raise £5.0m (gross) in February 2016 to fund acquisitive growth:
- Acquisition in May 2016 of Samarind Limited, a Regulatory Information Management solutions provider, for a maximum consideration of £2.5m
- Acquisition in Sept 2016 of Notocord, a software provider in pre-clinical studies, for a maximum consideration of €4.2m (£3.6m)
- Disappointing performance from Instem Clinical is being addressed through decisive management actions following strategic reappraisal
- Strong trading across all other business areas:
- Secured the majority of SEND ("Standard for Exchange of Non-clinical Data") related technology and outsourced services contracts placed in the market
- Successfully established KnowledgeScan Target Safety Assessment service, delivering 14 assignments, with repeat business from every client
- High levels of Provantis® contract renewals, including a long-term relationship with Charles River Laboratories, by far the largest pre-clinical CRO (contract research organisation)
- Record revenue and profit contribution from Perceptive Instruments, our genetic toxicology product suite
- Investment in the Sales and Operational teams and infrastructure to fund on-going growth
Phil Reason, CEO of Instem plc, commented:
“With the exception of the disappointing performance of Instem Clinical, business in 2016 was strong, helped by a buoyant pre-clinical market, the target for the majority of our products and services. Revenues grew both organically and through the acquisitions of Samarind and Notocord. Recurring revenue and SaaS revenue growth of 21% and 38%, respectively, were particularly pleasing.
“A more conservative revenue outlook for Instem Clinical in 2017 is expected to be more than offset by the growing momentum of our KnowledgeScan big data analytics and insights service, introduced in 2016, and the full year contributions from the Samarind and Notocord acquisitions.
“The FDA mandate of SEND in December 2016 fuelled market demand for our software and technology enabled out-sourced services and we anticipate strong revenue growth in line with expectations, however we will continue to invest in additional staff and facilities in this area during 2017 to ensure we maximise market share and retain our substantial market leadership as the FDA regulations drive further market growth. While near term profit will be significantly reduced by this and other investment across the Group, we are putting in place a platform for further growth in the longer term.”
Download the full results:
For further information, please contact:
|Phil Reason, CEO||+44 (0) 1785 825600|
|Nigel Goldsmith, CFO|
|N+1 Singer (Nominated Adviser & Broker)||+44 (0) 207 496 3000|
|Wallbrook Financial PR||Tel: +44 (0) 207 933 8780|
|Paul Cornelius||or email@example.com|
Instem is a leading supplier of IT applications and services to the early development healthcare market delivering compelling solutions for data collection, analysis and regulatory submissions management. Instem solutions are in use 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 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.