13 January 2016
("Instem", the "Company" or the "Group")
Instem plc (AIM: INS), a leading provider of IT solutions to the global early development healthcare market, announces a trading update for the year ended 31 December 2015.
Revenue for the 12 month period is expected to be ahead of consensus market estimates at approximately £15.8m (2014: £13.4m), of which recurring revenue will be at least £9.6m (2014: £9.2m). Both new and existing clients contributed well during the year while also generating a strong backlog of orders and increasing recurring revenues.
Net cash as of 31 December 2015 is also expected to be ahead of market estimates at £2.1m (31 December 2014: £1.7m) due to a combination of the growth in activity and efficient working capital management.
The Company has taken the opportunity during 2015 to increase investment in its growth markets in the expectation that this will drive future growth and earnings. One such area is the US Food & Drug Administration mandated Standard for the Exchange of Non-clinical Data (SEND), where market interest is continually building. Instem secured the majority of SEND technology related customers and contracts placed globally during 2015.
Overall earnings for the year are expected to be in line with current market expectations.
Phil Reason, CEO of Instem plc, commented; “We are pleased with the financial results that the Company has achieved over the past 12 months and the continuing market leadership we have enjoyed across our product lines. Furthermore, I have been delighted with the performance of the acquisitions of Logos and Perceptive, announced two years ago, which have both achieved their earn-out targets, enabling full integration into the wider Group.
“All the indicators for 2016 suggest it will be another year of profitable growth for the business with the inherent operational gearing delivering increased earnings, further enhancing shareholder value”.
For further information, please contact:
|Phil Reason, CEO||+44 (0) 1785 825600|
|Nigel Goldsmith, CFO|
|N+1 Singer (Nominated Adviser & Broker)||+44 (0) 20 7496 3000|
|Wallbrook Financial PR||Tel: +44 (0) 20 7933 8000|
|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