Unaudited Results for the Year Ended 31 December 2018

01 April 2019

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

Unaudited Results for the Year Ended 31 December 2018

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 2018.
 
Financial Highlights:

  • Revenues increased 8% to £22.7m (2017 restated*: £21.1m)
    • Software as a Service (SaaS) revenues increased 25% to £5.5m (2017: £4.4m)
    • Recurring revenues (annual support and SaaS) increased 6% to £13.7m (2017: £12.9m)
  • Adjusted EBITDA** of £4.1m (2017 restated*: £2.4m)
  • Reported profit before tax of £1.7m (2017 restated*: £0.3m)
  • Basic earnings per share of 9.2p (2017 restated*: 4.1p)
  • Fully diluted earnings per share of 8.7p (2017 restated*: 4.0p)
  • Adjusted*** fully diluted earnings per share of 15.5p (2017 restated*: 11.0p)
  • Net cash balance as at 31 December 2018 of £3.6m (2017: £3.1m)

*Restated due to the adoption of IFRS 15 and its impact on revenue recognition that accounts for £0.4m of additional revenue and £0.3m of EBITDA in FY18, which had previously been recognised in FY17.
**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.

Operational Highlights:

  • SEND outsourced services contract wins with two top five global non-clinical Contract Research Organisations (“CROs”) each worth in excess of £1m
  • Growing shift towards a SaaS based delivery and revenue model
  • Contract win with leading Fortune 500 Company which adopted Samarind RMS solution for its worldwide medical products regulatory tracking system
  • 500 additional Provantis® users licensed by our largest CRO client

Phil Reason, CEO of Instem, said: “With increasing momentum in the business from recent contract wins and the growing pipeline, we are confident about the outlook for the Group for 2019 and beyond.”

“While our strategy remains focused on Instem’s organic revenue growth, expanding operational gearing and improving positive cashflow, management will continue to consider complementary acquisition targets to further develop our position as a market leading provider of IT solutions to the global life sciences market.”

Download the full results:

Instem Final Results PDF

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  
Rachel Hayes  
Wallbrook Financial PR Tel: +44 (0) 20 7933 8780
Paul Cornelius or instem@walbrookpr.com
Sam Allen  
Nick Rome  

About Instem

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 customers worldwide and enable our 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 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.