Trading Update
10 January 2013
Instem plc
("Instem", the "Company" or the "Group")
Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the global early development healthcare market, is pleased to announce that following the successful conclusion of several contract negotiations it expects results for the year ended 31 December 2012 to be in-line with market forecasts.
License income was second-half weighted as in previous years and, while first half revenue was marginally below that of the comparable period in 2011, the Group expects to report revenue and profit for 2012 in line with forecasts, due to a high number of contracts being signed during the final quarter of the year.
The contracts signed in December 2012 were with some of the world’s most notable businesses in the pharmaceutical and research industries, including, among others, a top 10 global Biopharmaceutical company, several of the world’s leading preclinical Contract Research Organisations and JOINN, China’s largest provider of pre-clinical studies.
Instem’s balance sheet remains strong with net cash of approximately £2.2m at 31 December 2012 (31 December 2011: £2.9m). Due to a number of significant contracts falling in the final quarter of the year, the related cash inflow is now expected in the first quarter of 2013.
Phil Reason, CEO of Instem plc, commented: “We are delighted to have signed such high calibre contracts in the final quarter of 2012. It was especially pleasing that these contracts were representative of the breadth of our innovative product set in its entirety, including purchases of Provantis and Centrus alongside our Standard for Exchange of Nonclinical Data (SEND) module and our newly launched Logbook solution.
Underlying demand for Instem solutions remains strong, despite uncertainty remaining in the pharmaceutical market due to structural changes. In the medium term, we expect these changes in the market to drive the requirement for operational efficiencies which our software facilitates. Therefore with our extensive customer base, broad product set and market leading position, we view the future with confidence.”
Listen to an interview with Phil Reason, CEO, discussing the trading update
For further information, please contact:
| Instem plc | www.instem.com |
| Phil Reason, CEO | +44 (0) 1785 825600 |
| Nigel Goldsmith, CFO | |
| N+1 Singer (Nominated Adviser & Broker) | +44 (0) 20 7496 3000 |
| Richard Lindley | |
| Nick Owen | |
| James White | |
| Wallbrook Financial PR | Tel: +44 (0) 20 7933 8000 |
| Paul Cornelius | or instem@walbrookpr.com |
| Sam Allen | |
| Helen Cresswell | |
| Paul Whittington |
About Instem
Instem is a leading supplier of IT applications to the early development healthcare market delivering compelling solutions for data collection, management and analysis across the R&D continuum. Instem applications are in use by customers worldwide, meeting the rapidlyexpanding 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 harmonization of actionable scientific information.
Instem supports over 450 clients through full service offices in the United States, United Kingdom and China with additional locations in Japan and India.
To learn more about Instem solutions and its mission, please visit instem.com.