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26 Jan 2022 07:00
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 31 December | 2021 (Est)* £m | 2020 (Actual) £m | Growth £m | Growth % |
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 |
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Nigel Goldsmith, CFO |
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Singer Capital Markets (Nominated Adviser & Broker) | +44 (0) 20 7496 3000 |
Peter SteelAlex BondRachel Hayes |
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Stifel Nicolaus Europe Limited (Joint Broker) | +44 (0) 20 7710 7600 |
Ben Maddison |
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Alex Price |
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Walbrook Financial PR | +44 (0) 20 7933 8780 |
Tom Cooper | instem@walbrookpr.com |
Nick Rome |
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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, 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
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