16 Jan 2017 07:00
16 January 2017
Instem plc
("Instem" or the "Company")
Period End Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the global early development healthcare market, announces a period end trading update for the year ended 31 December 2016.
Revenues for the year increased by approximately 11% to circa £18.1m (2015: £16.3m) generating adjusted EBITDA of £1.2m. As previously announced, the strong performance in the majority of the business was offset by the disappointing performance of Instem Clinical and the signing of certain contracts, totalling £1.2 million, which has been delayed into 2017. Instem still expects to secure these contracts in the current year. Net cash as at 31 December 2016 was £4.1m (2015: £2.2m).
In order to capitalise on the longer term opportunities in its markets, the Company continued its investment in products and staff. Importantly Instem has continued to secure the majority of the SEND-related product and service contracts placed globally during 2016. The Company won over 30 SEND-related contracts for its software solutions and technology-enabled out-sourced services during the second half of 2016. The largest of these wins was with a top 10 global pharmaceutical company, which has purchased Instem's entire submit™ solution suite.
The acquisitions of Samarind Limited and Notocord, which completed in May and September 2016 respectively, will make a full 12 month contribution in the current year.
Phil Reason, CEO of Instem, commented; "Although the slowdown in the early phase clinical market and contract delays were disappointing, other parts of the business continued to perform well and we made significant progress during the year. Importantly, the overall market dynamics for our products and services remains positive and we therefore look forward to the next financial year with increasing optimism."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Instem plc | +44 (0) 1785 825 600 |
Phil Reason, CEO Nigel Goldsmith, CFO
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N+1 Singer (Nominated Adviser & Broker) | +44 (0) 20 7496 3000 |
Richard Lindley Nick Owen
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Walbrook Financial PR | +44 (0) 20 7933 8000 |
Paul Cornelius Helen Cresswell Sam Allen Paul Whittington | instem@walbrookpr.com |
About Instem plc
Instem is a leading supplier of IT applications and services to the early development healthcare market delivering compelling solutions for data collection, analysis and regulatory submissions management. Instem solutions are in use by customers worldwide, meeting the rapidly expanding needs of life science and healthcare organisations for data-driven decision making leading to safer, more effective products.
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 supports over 500 clients through offices in the United States, United Kingdom, France, Japan, China and India. To learn more about Instem solutions and its mission, please visit www.instem.com