Half Yearly Report

19 September 2016

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

Half Yearly Report

Instem plc (AIM: INS.L), a leading provider of IT solutions to the global early development healthcare market, announces its unaudited half year results for the six months ended 30 June 2016.

Financial Highlights

  • Revenues increased 21% to £9.1m (H1 2015: £7.5m)
    • Recurring revenues increased 6% to £5.3m (H1 2015: £5.0m)
  • EBITDA* increased 34% to £1.2m (H1 2015: £0.9m)
  • Adjusted** profit before tax of £1.0m (H1 2015: £0.7m)
  • Profit before tax of £0.1m (H1 2015: £0.3m)
  • Basic earnings per share of 0.4p (H1 2015: 1.6p)
  • Adjusted** basic earnings per share of 6.3p (H1 2015: 5.1p)
  • Seasonal net operating cash outflow of £1.5m (H1 2015: £1.0m)
  • Net cash balance as at 30 June 2016 of £4.8m (H1 2015: £0.1m)

*Earnings before interest, tax, depreciation, amortisation and 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 and the amortisation of intangibles on acquisitions. Profit is adjusted in this way to provide a clearer measure of underlying operating performance.

Operational Highlights

  • Secured a long-term relationship with Charles River Laboratories, by far the largest pre-clinical CRO (contract research organisation) in the industry
  • Signed six SEND Submit™ contracts, including one with a global top ten pharmaceutical company, totalling in excess of US$1.6 million
  • In February, with strong support from new and existing investors, Instem raised £4.7m net of expenses, to fund acquisitions and working capital
  • Samarind, the UK-based provider of Regulatory Information Management (“RIM”) software and services to the life sciences sector was acquired in May
  • Forward investment in staff and facilities to maximise the SEND opportunity

Post period Highlights

Completed the acquisition of France-based Notocord® Systems SAS, a software solutions provider for data acquisition and analysis.

Phil Reason, CEO of Instem plc, commented:
“The encouraging market dynamics in early drug development, including the new regulatory requirements driven by the Standard for the Exchange of Non-Clinical Data ("SEND"), have supported year-on-year revenue and underlying profit growth in the first half of 2016. The acquisitions of Samarind in May and Notocord in September add to a strong pipeline of new business opportunities through the remainder of 2016 and into 2017.”

Download the full report:
Half Yearly Report PDF

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 and services to the early development healthcare market delivering compelling solutions for data collection, analysis and regulatory submissions management. Instem solutions are in use by customers worldwide, meeting the rapidly expanding 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 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