Instem plc Trading Update (6240L)
14 Gennaio 2021 - 08:00AM
UK Regulatory
TIDMINS
RNS Number : 6240L
Instem plc
14 January 2021
Instem plc
("Instem" or "the Company")
Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, is pleased to announce a trading
update for the year ended 31 December 2020.
Financial Highlights
The performance during the period highlights the resilience of
the Company's business model - with continued strong cash
generation and growth in profits, with revenue growth in excess of
11% over the year. Importantly, recurring revenues grew strongly,
underpinned by the ongoing transition to SaaS based contracts.
Despite the wider market impact of COVID-19, the Company traded in
line with the Board's expectations.
Net cash as of 31 December 2020 was GBP26.7m - reflecting both
operating cash generation and the impact of the oversubscribed
placing in July 2020, which raised GBP15.0m for the Company net of
expenses. This enables the Company to build on its strong organic
performance by accelerating its acquisition strategy.
Operational Highlights
All three areas of the business, Study Management, Regulatory
Solutions and Informatics performed well, with an excellent first
full-year contribution to the Informatics area from the November
2019 acquisition of Leadscope. New business revenue came from a
balanced blend of new and existing clients. The $1m study
management contract win with new South-Korean client Biotoxtech,
announced in June 2020, further expanded the Company's footprint in
the important Asia-Pacific region. In addition, the recently
announced GBP2.2m new business award by one of the Company's
existing clients was extended post period end with a $0.8m order
for further funded product development. This order is scheduled for
2021 delivery and is focussed on reducing the time to produce SEND
(Standard for the Exchange of Non-clinical Data) information for
submission to the US Food & Drug Administration. These orders
highlight the growing number of cross-selling and up-selling
opportunities, while further increasing recurring revenues and
visibility.
Outlook
The Company's proven platform and continued strong growth
trajectory underpins management's confidence in the current year.
Organic growth opportunities remain, especially within SEND
exploitation, as customers look to leverage their valuable historic
studies for more efficient and effective research. This is
evidenced by the GBP0.7m contract from a top 30 pharmaceutical
company for conversion of historical studies to the SEND format won
during the period. Additionally, growing market demand for
Artificial Intelligence solutions provides a strong backdrop for
Informatics to cross-sell to existing clients and to widen the
Company's customer base.
The Company is in active dialogue and making good progress with
a number of acquisition targets and remains well-placed to drive
further value this year from this source.
Phil Reason, CEO of Instem plc, commented:
"We are extremely pleased with the Company's performance -
especially given the backdrop of COVID-19. The strong visibility
afforded to us by a buoyant life sciences R&D market and our
established business model means that we are well-positioned going
forward. Our continued focus remains on organic revenue growth,
further margin improvement and accretive M&A, where we are
making good progress in negotiations with certain targets."
For further information, please contact:
Instem plc Via Walbrook
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser
& Broker) +44 (0) 20 7496 3000
Peter Steel
Alex Bond
Rachel Hayes
Walbrook Financial PR +44 (0) 20 7933 8780
Tom Cooper instem@walbrookpr.com
Nick Rome
Nicholas Johnson
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 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 www.instem.com
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END
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