Half Year Trading Update
19 July 2021
(“Instem” or “the Company” or “the Group”)
Half Year Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the global life sciences market, is pleased to announce a trading update for the six months to 30 June 2021 (the “Period”).
Instem performed well across all areas of the business despite the ongoing backdrop of COVID-19 and continued to execute its acquisition strategy – growing the strength and depth of its solution suite and team with the additions of The Edge Software Consultancy Ltd ("The Edge") and d-Wise Technologies, Inc ("d-wise").
Trading for the Period was in line with the Board's expectations. H1 2021 revenues increased by approximately 45%, including a four-month contribution from The Edge and a three-month contribution from d-wise. Like-for-like revenue growth (excluding contribution from the acquisitions) was approximately 8% which translated to 15% growth on a constant currency basis. Operational cash generation (including on a like-for-like basis) remained strong, with a closing cash balance at 30 June 2021 of £17.9m.
The acquisitions of The Edge and d-wise have transformed the scale of the business and further broadened the Company’s offering across the drug discovery and development lifecycle, increasing recurring revenues and strengthening relationships with clients. Integration of both businesses is progressing well.
The Group generated strong organic growth across all its divisions, and the continued transition to the SaaS model, which combined with a favourable market conditions, generated increased visibility, with the Company well placed to convert opportunities within new and existing client bases.
Trading continues to be in line with the Board's expectations and given the step change in the scale of operations and strong pipeline, the Board is confident that the Company is well positioned to achieve further growth, while also taking advantage of any further acquisition opportunities that may arise.
Phil Reason, CEO of Instem, commented: "The Instem team has once again performed exceptionally well, almost entirely working from home offices and continuing to successfully deal with the ongoing challenges of Covid-19 while making a positive contribution to vaccine and therapy development. We are pleased with the progress made on the initial integration of d-wise and The Edge, and believe the enlarged Group continues to be well placed to grow recurring revenue and focus on further enhancements to margins and cash generation. We have a proven model, increased scale and buoyant market conditions, and look to the future with confidence.”
For further information, please contact:
|Phil Reason, CEO||Via Walbrook|
|Nigel Goldsmith, CFO|
|Singer Capital Markets (Nominated Adviser & Broker)||+44 (0) 20 7496 3000|
|Wallbrook Financial PR||Tel: +44 (0) 20 7933 8780|
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 instem.com.