Unaudited Full Year Results
26 March 2018
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
("Instem", the "Company" or the "Group")
Unaudited Results for the Year Ended 31 December 2017
12 months of significant operational and financial progress resulting in record full year revenue and operating profits
with a strong and scalable platform for future growth
Instem (AIM: INS.L), a leading provider of IT solutions to the global early development healthcare market, announces its unaudited full year results for the year ended 31 December 2017.
- Revenues increased 19% to £21.7m (2016: £18.3m)
- Recurring revenues increased 9% to £12.8m (2016: £11.7m)
- Software as a Service (SaaS) revenues increased 10% to £4.4m (2016: £4.0m)
- EBITDA* of £3.0m (2016: £1.3m)
- Adjusted** profit before tax of £1.9m (2016: £0.7m)
- Reported profit before tax of £0.8m (2016: £0.02m)
- Basic earnings per share of 6.9p (2016: 6.9p)
- Adjusted** fully diluted earnings per share of 13.8p (2016: 11.2p)
- Net cash balance as at 31 December 2017 of £3.1m (2016: £4.2m)
*Earnings before interest, tax, depreciation, amortisation 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. Profit is adjusted in this way to provide a clearer measure of underlying operating performance.
- Appointment of Chief Operating Officer, Ms. MaryBeth Thompson
- Significant amendment to a contract with the US National Institute of Environmental Health Sciences (NIEHS)
- Successfully completed Group-wide re-organisation in June 2017 to reduce annualised operational overheads by approximately £1.5m or 10%, which:
- helped to significantly improve the Group’s profitability in the second half of 2017
- will deliver a full year benefit in the current financial year
- Instem’s largest customer brought into operation over 700 additional Provantis user licenses during 2017, delivering enhanced recurring revenue
- Successfully completed the integration of Samarind & Notocord, acquired in May and September 2016, respectively, with a solid contribution to overall revenue for the period
- Secured two new Alphadas clients in the second half of 2017 with a major pharmaceutical company and an India-based CRO
Post period Highlights:
- Secured the largest SEND outsourced services contract win to date with a top five global nonclinical CRO that plans to outsource all SEND data set generation to Instem
Phil Reason, CEO of Instem, said: “Instem products and services now address aspects of the entire drug development value chain, from discovery through to market launch, and are currently deployed by over 500 companies, including all of the largest 25 pharmaceutical companies in the world. Management estimate that over 50% of all drugs on the market have been through some part of the Group’s platform at some stage of their development.”
“While new software license revenue was particularly strong in 2017, we also focused on opportunities to increase SaaS revenues and were very pleased to deliver an increase of over 10% during 2017, with both new SaaS customers and existing clients switching from on-premise to SaaS deployment.”
“The current financial year has started strongly with the largest SEND outsourced services contract win to date and one of the world's largest chemical products companies converting to the Company's market leading SaaS delivery model. These will deliver increased revenue and improved visibility for 2018 respectively. Furthermore, the recent restructuring will deliver the full twelve-month benefit in the current year.”
“The Board therefore looks forward to the coming year and beyond with increasing optimism on the back of an enhanced delivery platform, which promises to deliver significant revenue growth, enhanced profitability and improved quality of earnings.”
Download the full results:
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 8780|
|Paul Cornelius||or email@example.com|
Instem is a leading provider of IT solutions & services to the life sciences market delivering compelling solutions for Study Management and Data Collection; Regulatory Solutions for Submissions and Compliance; and Informatics-based Insight Generation.
Instem solutions are in use by over 500 customers worldwide, including all the largest 25 pharmaceutical companies, enabling clients to bring life enhancing products to market faster. 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 products and services now address aspects of the entire drug development value chain, from discovery through to market launch. Management estimate that over 50% of all drugs on the market have been through some part of Instem’s platform at some stage of their development. To learn more about Instem solutions and its mission, please visit instem.com.