20 Jul 2020 07:00
Instem plc
("Instem" or the "Company")
Half Year 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 six months to 30 June 2020 (the "Period").
Financial Highlights
The Company continued to perform well across all areas of the business despite the wider backdrop and macro impact of COVID-19. Trading for the Period was in line with the Board's expectations. H1 2020 revenues increased by approximately 20% with like-for-like revenue growth (excluding the Leadscope acquisition in November 2019) of approximately 12%. Operational cash generation was strong, with a closing cash balance at 30 June 2020 of £9.1m (30 June 2019: £6.0m).
The oversubscribed £15.75m fundraise (£15m net of expenses), as approved by shareholders on 16 July 2020 and completed post period-end, provides significant capital to accelerate the Group's acquisition strategy, with a number of potential compelling opportunities for bolt on acquisitions and more substantial targets having been identified.
Operational Highlights
The entire Instem team successfully transitioned to home working during the period with very little impact on operational effectiveness. Most clients continue to operate successfully with limited COVID-19 related impact.
As previously highlighted in our 2019 Final Results (3rd June 2020), there was a small negative impact due to the inability to undertake client site based professional services work and secure new software licenses in the academic segment during the Period. However, Leadscope recorded a strong performance, in part due to revenue synergies being realised quicker than initially anticipated. The addition of Leadscope has broadened the Company's offering, strengthening its capabilities in high-demand AI-based in-silico R&D and continuing to diversify its revenue streams.
Outlook
The Company continues to trade in line with the Board's expectations and, given the continued strong organic and acquisitive growth potential, the Board is confident that the Company is well positioned to take advantage of opportunities that arise throughout the remainder of the year and beyond in existing and adjacent markets. With a scalable platform in place and broad portfolio of products and services, the aim is to further grow market share, margins and revenue visibility.
Investor Presentation
The Company will be hosting a presentation through the digital platform Investor Meet Company at 16.30 (BST) on Thursday 23 July. Investors can sign up to Investor Meet Company for free and add Instem via the following link https://investormeetcompany.com/instem-plc/register-investor or for more information please contact Walbrook PR at instem@walbrookpr.com.
Phil Reason, CEO of Instem plc, commented: "Trading during the Period highlighted the resilience of our operations and the dedication of the entire Instem team as the Company continued to grow despite the COVID-19 backdrop. We have been delighted to directly contribute to our clients' COVID-19 vaccine and therapy-related R&D activities and remain committed to prioritising these efforts over the second half. Following completion of the fundraise, we also aim to drive revenues and margins as we look to further consolidate the market."
For further information, please contact:
Instem plc | Via Walbrook |
Phil Reason, CEO |
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Nigel Goldsmith, CFO |
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N+1 Singer (Nominated Adviser & Broker) | +44 (0) 20 7496 3000 |
Peter Steel Rachel Hayes |
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Walbrook Financial PR | +44 (0) 20 7933 8780 |
Tom Cooper | instem@walbrookpr.com |
Nick Rome Nicholas Johnson |
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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