Audited Results for the Year Ended 31 December 2020 & Investor Presentation

12 April 2021

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

Audited Results for the Year Ended 31 December 2020 & Investor Presentation

Instem plc (AIM: INS), a leading provider of IT solutions to the global life sciences market, announces its audited results for the year ended 31 December 2020 (the “Period”).

Financial Highlight:

  • Revenues increased 10% to £28.2m (2019: £25.7m)
    • Software as a Service (SaaS) revenues increased by 25% to £8.0m (2019: £6.4m)
    • Recurring revenues (annual support and SaaS) increased 13% to £16.9m (2019: £14.9m)
    • Organic revenue growth (excluding Leadscope acquisition in November 2019) of 3% to £26.3m (2019: £25.5m)
  • Adjusted EBITDA* of £5.9m (2019: £4.9m)
  • Reported profit before tax of £2.5m (2019: loss of £0.9m)
  • Adjusted profit before tax** of £4.0m (2019: £3.2m)
  • Fully diluted earnings per share of 11.6p (2019: 5.7p loss per share)
  • Adjusted fully diluted earnings per share** of 19.1p (2019: 18.4p)
  • Cash balance as at 31 December 2020 of £26.7m (2019: £6.0m) – reflecting both very strong operating cash generation and the oversubscribed placing in July 2020

*Earnings before interest, tax, depreciation, amortisation, impairment of goodwill and capitalised development costs plus non-recurring items.
**After adjusting for the effect of foreign currency exchange on the revaluation of inter-company balances included in finance income/(costs), non-recurring items, impairment of goodwill and capitalised development costs plus amortisation of intangibles on acquisitions.

Operational Highlights

  • Strong performance despite wider market impact of COVID-19
  • Placing raising £15m net of expenses for the Group to accelerate its acquisition strategy
  • Continued transition to SaaS deployment, increasing recurring revenue
  • New business revenue came from a balanced blend of new and existing clients
  • Further expansion of footprint in the Asia-Pacific region

Post Period-End Highlights

  • Completed the acquisitions of The Edge Software Consultancy (“The Edge”) and d-Wise Technologies Inc (“d-wise”)
    • Extending the Group’s reach across the drug discovery and development lifecycle
    • Increasing recurring revenues
    • Strengthening relationships with existing clients
  • Current cash position of circa £14m following payment of initial acquisition consideration  
  • Deferred and contingent consideration payable of up to approx. £11.1m 

Analyst Presentation: 11:00  today
Management will be hosting a presentation via web conference today at 11:00. Analysts wishing to join should register their interest by emailing or by telephoning 020 7933 8780.

Investor Presentation: 16:00 today
Management will be providing a presentation and hosting an Investor Q&A session on the results and future prospects today at 16:00, through the digital platform Investor Meet Company. Investors can sign up for free and add to attend the presentation via the following link

Questions can be submitted pre event and at any time during the live presentation via the Investor Meet Company Platform.

Phil Reason, CEO of Instem, commented: The performance during the Period highlighted our  resilience – especially given the COVID-19 backdrop. Our proven model continues to generate strong cash flows while the combination of increasing demand for regulatory-backed solutions and a growing demand for artificial intelligence and in silico solutions in the drug discovery process underpins our confidence in further leveraging our product base. Importantly, we already have good visibility for the current year with growing SaaS revenues and a strong pipeline.

“We are extremely pleased with our continued strong organic growth and increasing ability to cross sell to existing and new clients. Furthermore, we are primed to build on this momentum, having strengthened our proposition post Period end. The recent acquisitions of d-wise and The Edge highlight our ability to add scale and leverage existing customer relationships with a view to further enhancing earnings and profitability, while providing a strong platform for continued growth. In addition, we are continuing discussions with a number of other potential acquisition targets.

“Given the structural backdrop and opportunities within our existing client base, we are confident that we are well placed to continue growing recurring revenues, margins, and cash generation, and look forward to augmenting organic growth via our ongoing acquisition strategy.

Download the full report:

Instem Full Year Results PDF

For further information, please contact:

Instem plc Via Walbrook
Phil Reason, CEO  
Nigel Goldsmith, CFO  
N+1 Singer (Nominated Adviser & Broker) +44 (0) 20 7496 3000
Peter Steel / Alex Bond  
Rachel Hayes  
Wallbrook Financial PR Tel: +44 (0) 20 7933 8780
Nick Rome
Tom Cooper  
Nicholas Johnson  

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 over 600 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 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