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Unaudited Preliminary Results

26 March 2014

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

Unaudited Preliminary Results

Instem plc (AIM: INS.L), a leading provider of IT applications to the global early development healthcare market, announces its unaudited preliminary results for the year ended 31 December 2013.

Financial Highlights

  • Revenues increased 7% to £11.4m (2012: £10.7m)
    • Recurring revenues increased 9% to £8.2m (2012: £7.5m), representing 72% of total revenues
    • Software as a Service (SaaS) revenues increased 35% to £1.5m (2012 £1.1m)
  • Adjusted operating profit* increased 8% to £1.5m (2012: £1.3m)
  • Reported profit before tax of £0.7m (2012: £1.3m)
  • Cash balance as at 31 December 2013 of £2.1m (2012: £2.5m)
    • £1.6m net investment in acquisitions during 2013
  • Adjusted** earnings per share of 8.6p (2012: 7.8p)
    • Basic earnings per share of 4.5p (2012: 8.9p)

* before amortisation of intangibles on acquisitions, share based payments 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.

Strategic Developments

  • Logos Technologies (rebranded “Instem Clinical”) and its ALPHADAS® product suite acquired in May 2013. Fully integrated and performing strongly
  • First entrance into the in vitroR&D market through the acquisition of Perceptive Instruments Ltd. in November 2013

Operational Highlights

  • Customer retention rate remained strong at 95%
  • Signed 10-year US$6.2m revenue SaaS contract for Provantis secured with the National Institute of Environmental Health Sciences (NIEHS), a US Government body
  • SaaS deals with two top 10 pharmaceutical companies
  • Provantis licensed for 3 additional clients in North America, Europe and India in Q4
  • First Instem Clinical contract won with Retroscreen Virology Group plc (AIM:RVG), with additional sites licensed in December 2013
  • Signed SEND contracts with a major healthcare customer, a top three pharmaceutical company and three further clients in H2

Phil Reason, CEO of Instem plc, commented: “The Group has continued to increase its share of the preclinical market and made important strategic progress including expansion of its product sets and entry into the early phase clinical market. The increase in new SaaS deals signed in the year is particularly pleasing. Our SaaS offer is compelling for clients and provides the Group with increasing long-term revenue visibility.

“Instem, like other pharmaceutical services companies, is beginning to see an improvement in its end markets, with the global pharmaceutical market re-focusing its efforts into early stage development work. In addition, the industry’s regulatory and fiscal pressures continue to work in Instem’s favour, driving demand for all areas of our product portfolio.

“With the benefit of a full year’s contribution from both the Instem Clinical and more recent Perceptive Instruments acquisitions, we look forward to 2014 with confidence.”

Download the full results:

PDF file Instem Final Results PDF (285 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.