Trading Update
26/01/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220126:nRSZ6268Za&default-theme=true
RNS Number : 6268Z Instem plc 26 January 2022
Instem plc
("Instem", the "Group" or the "Company")
Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the global life
sciences market, announces a trading update for the year ended 31 December
2021 (the "Period").
Financial Highlights
Year Ended 2021 (Est)* 2020 (Actual) Growth Growth
31 December £m £m £m %
Revenue (like-for-like) 30.0 28.2 1.8 6.4%
Revenue (from acquisitions) 16.1 n/a n/m n/m
Total Revenue 46.1 28.2 17.9 64%
*Estimate, subject to audit
Trading during the Period was in line with the Board's expectations reflecting
both strong organic and acquisition-driven growth, with the Company completing
three acquisitions during the year. Like-for-like revenue growth of
approximately 6.4% (over 10% growth on a constant currency basis) was driven
by both increased cross-selling and further new client wins, while the
transition to a Software-as-a-Service ("SaaS") based model continued to
underpin organic margin growth and increased revenue visibility.
Combined with the acquisitions of The Edge Software Consultancy Ltd ("The
Edge"), D-Wise Technologies, Inc ("d-Wise"), and PDS Pathology Data Systems
Ltd ("PDS"), all of which only contributed for part of the Period, total
revenues grew by c.64%.
The Company continued to generate strong profits and operating cash during the
Period, with a closing cash balance of £15.1m as at 31 December 2021.
Operational Highlights
The acquisitions of The Edge, d-Wise and PDS, which are all integrating well,
transformed the scale of the business, broadening its reach across the drug
discovery and development lifecycle, as well as strengthening relationships
with existing clients. As previously announced when acquired, all three
acquisitions are expected to be earnings enhancing in FY21 and have added
strong management teams and synergies to the existing business and client
base.
Organic growth was supported by strong market trends, and a clear preference
for new clients to deploy Instem's software using a SaaS model. Momentum from
the first half continued throughout the remainder of the year with revenue
particularly strong in North America and China, where successful early-phase
R&D is delivering a healthy pipeline of drug candidates.
Outlook
The Company remains well placed to take advantage of a growing pipeline of
opportunities generated by new and existing clients. Given the positive market
backdrop, the Company's proven platform and continued strong growth
trajectory, the Board is confident that the Company will continue to build
organically on recent momentum. Whilst, in the near term, the Company is
focusing on the integration of recent acquisitions, it continues to evaluate
potential acquisition opportunities in existing and closely related adjacent
market areas.
Phil Reason, CEO of Instem plc, said: "We are delighted with the tremendous
performance of the Instem team during what was an extremely busy period for
the Company. As well as adding three high quality businesses to the Group,
which are integrating well, we continued to improve all key metrics within
existing operations.
"We exit the Period stronger than ever, with increased scale and strong
relationships across all our target client segments. These will allow us to
continue to grow, as we deliver ever-greater impacts, helping reduce cost and
improve timelines within our clients' life sciences discovery and development
activities."
For further information, please contact:
Instem plc Via Walbrook
Phil Reason, CEO
Nigel Goldsmith, CFO
Singer Capital Markets (Nominated Adviser & Broker) +44 (0) 20 7496 3000
Peter Steel
Alex Bond
Rachel Hayes
Stifel Nicolaus Europe Limited (Joint Broker) +44 (0) 20 7710 7600
Ben Maddison
Alex Price
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,
Regulatory Submissions, Clinical Trial Acceleration, and Informatics-based
Insight Generation.
Instem solutions are in use by over 700 customers worldwide, including all of
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 during their development.
To learn more about Instem solutions and its mission, please
visit www.instem.com (http://www.instem.com/)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTKELFLLFLZBBK