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Unaudited Interim Results

19 September 2012

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

Unaudited Interim Results

Instem plc (AIM: INS.L), a leading provider of IT applications to the global early development healthcare market, announces its unaudited interim results for the six months ended 30 June 2012.

Financial Highlights

  • Revenues steady at £4.9m (H1 2011: £4.9m)
  • Recurring revenues accounted for 74% of total (H1 2011: 70%)
  • Software-as-a-Service (SaaS) revenue up 21% to £0.6m (2011: £0.5m)
  • Operating profit before amortisation, share based payment and non-recurring items £0.3m (H1 2011: £0.6m)
  • Basic earnings per share (0.1)p (H1 2011: 1.1p)
  • Seasonal operating cash outflow of £1.2m (H1 2011: £1.4m)
  • Closing cash balance as at 30 June 2012 of £1.8m (H1 2011: £1.3m)

Operational Highlights

  • New contracts include a leading pharma in Japan, Advinus Therapeutics and Lupin Limited in India, and licence extensions with several Contract Research Organisations in the US and Europe
  • Customer retention rate remained strong at over 95%
  • Released Provantis® version 9 in July 2012, the final major release in a multi-year migration of the Provantis suite to the latest technology platform
  • Strong pipeline of customer opportunities for both Provantis® (pre- and non-clinical studies) and Centrus™ (data access and harmonization)

Phil Reason, CEO of Instem plc, commented:

“Instem has started the second half of the year in line with management expectations, as reflected in the Company’s trading update issued 26 July 2012, and we are confident of being strongly cash positive in the second half.

“The breadth of the Company’s Provantis and Centrus suites, combined with its extensive geographical reach, blended SaaS and traditional licence model continue to be key competitive differentiators. Instem is currently working on multiple contract opportunities, from both new and existing customers. These are predominantly in the US market, but also within the European market which is starting to show initial signs of recovery following a difficult 2011 in which several large European research facilities were closed.

“Overall, while the Board remains cautious regarding the timing of deal flow, it is optimistic about the medium to long-term prospects for the business which remains well positioned to benefit from the trends in its end markets towards multi-site, collaborative and outsourced R&D.”

Download the full results:

PDF file Instem Interim Results PDF (393 KB)

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  
Nick Owen  
James White  
Wallbrook Financial PR Tel: +44 (0) 20 7933 8000
Paul Cornelius or instem@walbrookpr.com
Sam Allen  
Helen Cresswell  
Paul Whittington  

About Instem

Instem is a leading supplier of IT applications to the early development healthcare market delivering compelling solutions for data collection, management and analysis across the R&D continuum. Instem applications are in use by customers worldwide, meeting the rapidlyexpanding needs of life science and healthcare organisations for data-driven decision making leading to safer, more effective products.

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 harmonization of actionable scientific information.

Instem supports over 450 clients through full service offices in the United States, United Kingdom and China with additional locations in Japan and India.

To learn more about Instem solutions and its mission, please visit instem.com.