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Final Results

28 March 2012

Instem plc
("Instem", the "Company" or the "Group")

Final Results

Instem plc (AIM: INS.L), a leading provider of IT applications to the global early development healthcare market, announces its preliminary unaudited results for the year ended 31 December 2011.

Financial Highlights

  • Revenues increased 7.9% to £10.8m (2010: £10.0m)
  • Recurring revenues accounted for 70% of total revenues (2010: 67%)
  • SaaS revenue for 2011 up 29% to £1.02m (2010: £0.79m)
  • Adjusted operating profit* £2.0m (2010: £2.3m)
  • Reported profit before tax £1.5m (2010: £1.4m)
  • Basic earnings per share 8.6p (2010 adjusted: 7.7p)
  • Cash generated from operations £1.4m (2010: £0.7m)
  • Closing cash balance as at 31 December 2011 of £3.4m (2010: £3.3m)

Operational Highlights

  • Strong level of Provantis customer wins, with nearly half being secured in the final quarter of the year. New customers included:
  • Battelle, the world’s largest independent research and development organisation
  • National Center for Safety Evaluation of Drugs (NCSED), a subsidiary of the Chinese State Food & Drug Administration (SFDA)
  • Champions Oncology, the first deployment of Provantis in a drug efficacy rather than safety application
  • The Jackson Laboratory, one of the world’s largest not-for-profit, biomedical research institutions
  • SRI International, a renowned independent, non-profit research institute
  • Provantis customer retention rate remained high at over 95%
  • Increased presence in emerging markets:
  • Further Asia Pacific market expansion with six new clients in China, Japan, Singapore and Australia
  • Instem India established post-period end to provide flexible software development capability
  • Strong performance from BioWisdom, which was acquired in March 2011 (now renamed Instem Scientific)
  • Centrus product fully compliant with the recently released US government sponsored Standard for the Exchange of Non-clinical Data (SEND)

* Operating profit before amortisation, share based payment and non-recurring items.

Phil Reason, CEO of Instem plc, commented:

“While revenues for the year were lower than originally anticipated, this was a strong performance in a difficult market and the outturn is marginally ahead of revised expectations. Our pre-clinical product, Provantis increased its market leading position, benefiting from our investments into SaaS deployment and increased geographic coverage. We saw signs, particularly towards the end of the year, that the Contract Research Organisation sector of our market is starting to recover from a difficult few years and we expect this to continue slowly in 2012. Two of the contracts which were delayed from the second half of 2011 have now been signed in the first quarter of 2012.

“The Group remains highly profitable, cash generative and has a strong pipeline of opportunities for the current year. While the Board is conscious of market conditions, our high level of renewals and a substantial contracted order book, combined with a full year’s contribution from Instem Scientific underpin our confidence in the year ahead. We continue to pursue additional acquisition opportunities to extend our product offering, new customer relationships and market coverage.”

Download the full results:

PDF file Instem Final Results PDF (105 KB)

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.