Half Year Report

23 September 2019

Instem plc
("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 2019.

Financial Highlights

  • Total revenues were up 11% to £11.7m (H1 2018: £10.5m)
    • New Software as a Service orders increased to £1.1m (H1 2018: £0.5m)
    • Recurring revenue (annual support and SaaS) increased to £7.0m (H1 2018: £6.5m)
  • EBITDA* of £1.7m including a beneficial IFRS16 adjustment of £0.3m (H1 2018: £1.4m)
  • Profit before tax of £0.4m (H1 2018: £0.1m)
  • Basic earnings per share of 2.0p (H1 2018: 0.3p)
  • Diluted earnings per share of 1.9p (H1 2018: 0.2p)
  • Net operating cash inflow of £3.2m (H1 2018: inflow £1.6m)
  • Cash balance as at 30 June 2019 of £6.0m (H1 2018: £3.7m)

*Earnings before interest, tax, depreciation, amortisation and non-recurring costs.

Operational Highlights

  • All three areas of the business, Data Collection, Informatics and Regulatory Solutions performed well during the period
  • Continued transition towards SaaS based delivery and revenue model, in line with strategic objective to increase earnings visibility

Post period Highlights

  • Awarded four Provantis contracts worth approximately £1.7m in aggregate, of which approximately £1.0m in revenue is expected to be recognised in H2 2019

Phil Reason, CEO of Instem, commented:

“Performance in the first half of the current year reflects both the strategic restructuring undertaken in prior years and the increasing efficacy of the Company’s leading technology and services. It was further underpinned by a positive market backdrop, with the pharmaceutical industry increasing investment in the types of software and services Instem provides to match the expanding drug pipeline and to satisfy increasing regulatory requirements.”

“Strong order intake and pipeline growth during the period enabled accelerated investment in personnel to ensure we execute on these opportunities.”

“Our stated strategy of moving clients from perpetual licences to SaaS has been more successful than we anticipated and consequently some short-term licence revenue is being replaced. Whilst this will have a slight impact on earnings in the current year, it will generate longer-term recurring revenues going forward.”

Download the full report:

Instem Half Year Report 2019 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  
Alex Bond  
Rachel Hayes  
Wallbrook Financial PR Tel: +44 (0) 20 7933 8780
Paul Cornelius or instem@walbrookpr.com
Nick Rome  

About Instem

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 500 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 now 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.