Audited Results for the Year Ended 31 December 2019
03 June 2020
Instem plc
("Instem" or the "Group")
Audited Results for the Year Ended 31 December 2019
Instem (AIM: INS.L), a leading provider of IT solutions to the global early development healthcare market, announces its results for the year ended 31 December 2019.
Financial Highlights:
- Revenues increased 13% to £25.7m (2018: £22.7m)
- Software as a Service (SaaS) revenues increased 16% to £6.4m (2018: £5.5m)
- Recurring revenues (annual support and SaaS) increased 9% to £14.9m (2018: £13.7m)
- Adjusted EBITDA* of £4.9m (2018: £4.1m)
- Reported loss before tax of £0.9m (2018: profit of £1.7m), after **non-cash goodwill and intangible asset impairment of £3.2m (2018: £nil)
- Adjusted profit before tax*** of £3.2m (2018: £2.8m)
- Fully diluted loss per share of (5.7p) (2018: 8.7p earnings per share)
- Adjusted*** fully diluted earnings per share of 18.4p (2018: 15.5p)
- Cash balance as at 31 December 2019 of £6.0m (2018: £3.6m)
*Earnings before interest, tax, depreciation, amortisation, impairment of goodwill and capitalised development costs and non-recurring items. 2019 reflects the adoption of IFRS16.
** This is associated with our Clinical business and covered in more detail in the Strategic Report.
***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 and amortisation of intangibles on acquisitions. Profit is adjusted in this way to provide a clearer measure of underlying operating performance.
Operational Highlights:
- Continued transition to SaaS deployment, increasing recurring revenue
- Rapidly growing informatics service, automating a key industry process of “Target Safety Assessment”
- Earnings enhancing acquisition of Leadscope Inc for up to $4.7m, extending our artificial intelligence technology offering and opening up cross-selling and upselling opportunities
- FDA’s SEND initiative continued to underpin strong technology enabled outsourced services revenue growth
Phil Reason, CEO of Instem, commented: “We are delighted with our performance during the period with our proven business model generating improvements across all of our key performance metrics. We have an established base from which to grow, both organically and via acquisition, and have established long-term relationships with our blue-chip client base. Importantly, we are well positioned to add new clients and generate increasing revenues from existing clients while our transition to a SaaS model increases visibility.”
“Increased revenue predictability and high retention rates provide a strong foundation from which the business can grow as it builds on the momentum achieved during 2019. While some future uncertainty inevitably remains as a consequence of the Covid-19 pandemic, the majority of our revenue comes from clients whose laboratories are regarded as “essential businesses” and therefore remain active, with many working on COVID-19 related vaccines and therapies. Consequently, we have remained very busy, have good visibility over a strong H1 2020 performance and continue to have confidence in the longer term outlook for the business, supported by a strong cash balance at the end of April 2020 of £8.3m. Our staff are currently working effectively from home and are highly motivated by our work which is directly contributing to COVID-19 research and development.”
Download the full report:
For further information, please contact:
| Instem plc | Via Walbrook PR |
| 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 | instem@walbrookpr.com |
| 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 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.