Half Year Report
28 September 2020
("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 2020.
- Total revenues were up 20% to £14.0m (H1 2019: £11.7m)
- Recurring revenue (annual support and SaaS) increased 19% to £8.4m (H1 2019: £7.0m)
- Organic revenue growth (excluding Leadscope acquisition in November 2019) of 12% to £13.1m (H1 2019: £11.7m)
- Adjusted EBITDA* of £3.0 m (H1 2019: £1.7m)
- Profit before tax of £1.9m (H1 2019: £0.4m)
- Adjusted profit before tax** of £2.1m (H1 2019: £0.8m)
- Basic and diluted earnings per share of 9.5p (H1 2019: 2.0p) and 9.0p (H1 2019: 1.9p)
- Net operating cash inflow of £3.0m (H1 2019 inflow £3.2m)
- Cash balance as at 30 June 2020 of £9.1m (H1 2019: £6.0m)
*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 amortisation of intangibles on acquisitions.
Profit is adjusted in this way to provide a clearer measure of underlying operating performance.
- All parts of the business performed well, highlighting the resilience of the business model given the Covid-19 backdrop
- Continued transition towards a SaaS based delivery and revenue model, in line with the strategic objective to increase earnings visibility
- $1 million contract win with South Korea-based Biotoxtech
Post-period end Highlights
- Oversubscribed £15.75m gross placing at 435p per share to accelerate the Group's acquisition strategy
- £0.7m contract from a top 30 pharmaceutical company for conversion of historical studies to the SEND format
Phil Reason, CEO of Instem plc, commented:
“The performance in the first half of the year reflects the strength of the Company’s growing suite of solutions and services, the underlying market fundamentals and the tremendous performance of the entire Instem team, who have performed admirably in the challenging Covid-19 environment.
“The organic growth achieved highlights the resilience of the Company’s model, especially given the Covid-19 backdrop, while the positive impact from Leadscope provides a strong reference point for the range of acquisitions that management is currently progressing following the post-period end fundraise.
The Company continues to trade in line with the Board’s expectations, with the Board anticipating that the momentum achieved during the first half and post period-end will continue over the rest of the year.”
For further information, please contact:
|Phil Reason, CEO||Via Walbrook|
|Nigel Goldsmith, CFO|
|N+1 Singer (Nominated Adviser & Broker)||+44 (0) 20 7496 3000|
|Wallbrook Financial PR||Tel: +44 (0) 20 7933 8780|
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 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.