Unaudited Preliminary Results

30 March 2015

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 2014.

Financial Highlights

  • Revenues increased 18% to £13.4m (2013: £11.4m)
  • Recurring revenues increased to £9.2m (2013: £8.2m), representing 69% of total revenues
  • Software as a Service (SaaS) revenues increased 20% to £1.8m (2013: £1.5m)
  • Adjusted EBITDA* for the year amounted to £1.9m (2013: £1.8m)
  • Cash balance as at 31 December 2014 of £1.7m (2013: £2.1m)
    • After £0.3m of deferred acquisition consideration paid in 2014
  • Adjusted earnings per share** of 8.4p (2013: 8.6p)

*Earnings before interest, tax, depreciation, amortisation, share based payment charges 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.

Operational Highlights

  • Significant WIL Research contracts won in H1 and H2, with the latter valued at over $7m over four years
  • Multi-year National Institute of Environmental Health Sciences (“NIEHS”) contract extended with additional sites and users
  • Further client wins extended our market leading position in China
  • US Food & Drug Administration mandating drug submissions using SEND (Standard for the Exchange of NonClinical Data)
  • Multiple orders for submit™, Instem’s solution implementing SEND
  • Both 2013 acquisitions successfully integrated

Phil Reason, CEO of Instem plc, commented: “In contrast to 2013, when the preclinical and early clinical market was generally reluctant to commit to any significant investment decisions, 2014 was a period when many of our customers revisited their near-term ambitions and began to evaluate their ongoing information management requirements. This resulted in a very strong second half performance.

“As we enter the current financial year, our order backlog is at record levels, underpinning our 2015 expectations. In addition, December’s decision by the FDA to mandate the future use of SEND was a key event for which Instem has been planning and we have already begun to see increasing interest and orders for the Group’s SEND compliant products across a range of customers.

“Total research and development pipelines within the pharma sector have increased by almost 9% to approximately 12,300 drug candidates during 2014, which makes us particularly positive about our outlook for the future as we can now see sustainable growth across our target markets.”

Download the full results:

PDF file Instem Preliminary Results PDF (268 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.