Unaudited Interim Results

25 September 2013

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 2013.

Financial Highlights

  • Revenues increased by 13% to £5.5m (H1 2012: £4.9m)
    • Recurring revenues accounted for 76% of total (H1 2012: 74%)
    • Software-as-a-Service (SaaS) revenue rose 16% to £0.7m (H1 2012: £0.6m)
  • Operating profit* of £0.7m (H1 2012: £0.3m)
  • Seasonal net operating cash outflow of £0.6m (H1 2012: £1.2m)
  • Closing cash balance as at 30 June 2013 of £0.9m (H1 2012: £1.8m), reflecting normal seasonality in cash collection and acquisition related payments totalling £0.8m
  • Adjusted** earnings per share of 3.2p (H1 2012: (0.6)p)
    • Basic earnings per share of (0.7)p (H1 2012: (0.1)p)

*Operating profit before amortisation, share based payment and non-recurring items.
**After adjusting earnings 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.

Operational Highlights

  • Provantis, our integrated pre-clinical study management suite enabling automated collection, analysis and sharing of data, continues to perform strongly, securing new customers and upgrade orders
  • Provantis 9 awarded a significant, 10-year US$6.2m revenue contract with the National Institute of Environmental Health Sciences (NIEHS) a US Government body in February 2013
  • Won the VOLTAGE Technology Innovator Award for its submit™ solution, which implements the FDA Standard for the Exchange of Nonclinical Data (SEND)
  • Acquisition of Logos Technologies (rebranded “Instem Clinical”) and its ALPHADAS product suite in May 2013
  • SEND contract with major healthcare customer - May 2013
  • Customer retention rate remained strong at 95%
  • Strong pipeline of new business opportunities across all product sets
  • Instem Clinical Won a major new client, the operating subsidiary of Retroscreen Virology Group PLC (AIM:RVG “Retroscreen”), through a contract for the newly acquired ALPHADAS early clinical software suite, worth high six-figures GBP of revenue

Phil Reason, CEO of Instem plc, commented:

“We are very pleased with Instem’s strategic, operational and financial progress in the first half of the year. We have continued to broaden our product range, extend our geographical reach and sign top tier clients across the breadth of our expanded product set. In addition, Instem also made an important move into the early phase clinical market through the acquisition of Logos Technologies, which has already proven beneficial.

Both the regulatory and fiscal environments continue to be favourable to Instem, driving demand for all areas of our product suite. With a strong order intake in the first half, the Board continues to view the future prospects for the business with confidence.”

Download the full results:

PDF file Instem Interim Results PDF (1 MB)

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.