Half Year Report
24 September 2018
("Instem", the "Company" or the "Group")
Half Year Report
Instem plc (AIM: INS.L), a leading provider of IT solutions to the global life sciences market, announces its unaudited half year results for the six months ended 30 June 2018.
- Total revenues were £10.5m (H1 2017: £10.3m), of which recurring revenues were £6.5m (H1 2017: £6.5m)
- EBITDA* of £1.4m (H1 2017: £0.6m)
- Adjusted** profit before tax of £0.8m (H1 2017: £0.1m)
- Adjusted** basic earnings per share of 4.7p (H1 2017: 0.2p)
- Reported profit before tax of £0.1m (H1 2017: loss of £0.6m)
- Reported basic earnings per share of 0.3p (H1 2017: loss per share of 4.4p)
- Net operating cash inflow of £1.6m (H1 2017: outflow £1.4m)
- Cash balance as at 30 June 2018 of £3.7m (H1 2017: £1.2m)
*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.
- Strong performance from our Regulatory Solutions business, which is winning the majority of SEND technology and outsourced services contracts and is increasing market share
- Contract win with a top five global, non-clinical Contract Research Organisation (“CRO”) outsourcing all SEND data set generation to Instem, worth in excess of £1.7 million over an initial two-year period
- A top five preclinical CRO extended its 2018 SEND outsourced Services contract to over $0.5 million
- Increased demand for our Software-as-a-Service ("SaaS") delivery model, supported by accreditation, in the period, to Information Security Management Standard ISO 27001, ensuring both internal and external client compliance with EU General Data Protection Regulation ('GDPR')
- Contract win with a leading Fortune 500 Company that adopted Instem's Samarind RMS solution for its worldwide medical products regulatory tracking system
Phil Reason, CEO of Instem plc, commented:
“We are very pleased with the performance of the business during H1 2018, with regulatory requirements delivering the expected significant increase in demand for our technology enabled outsourced services.”
“Growth was also particularly strong in the Asia-Pacific region, with bookings up over 60% on the prior year, primarily attributable to the continuing funding of pharmaceutical Research & Development by the Chinese government.”
“With increasing momentum in the business from recent contract wins and the growing pipeline, we are confident about the outlook for the Group for the rest of 2018 and beyond.”
“While our strategy remains focused on organic revenue growth, expanding operational gearing and improving positive cashflow, management will continue to consider complementary acquisition targets, including transformational opportunities, to further develop our position as a market leading provider of IT solutions to the global life sciences market.”
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For further information, please contact:
|Phil Reason, CEO||+44 (0) 1785 825600|
|Nigel Goldsmith, CFO|
|N+1 Singer (Nominated Adviser & Broker)||+44 (0) 20 7496 3000|
|Wallbrook Financial PR||Tel: +44 (0) 20 7933 8000|
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.