10 Jan 2013 07:00
10 January 2013
Embargoed for 07:00
Instem plc
("Instem", the "Company" or the "Group")
Trading Update
Instem plc (AIM: INS), a leading provider of IT solutions to the global early development healthcare market, is pleased to announce that following the successful conclusion of several contract negotiations it expects results for the year ended 31 December 2012 to be in-line with market forecasts.
License income was second-half weighted as in previous years and, while first half revenue was marginally below that of the comparable period in 2011, the Group expects to report revenue and profit for 2012 in line with forecasts, due to a high number of contracts being signed during the final quarter of the year.
The contracts signed in December 2012 were with some of the world's most notable businesses in the pharmaceutical and research industries, including, among others, a top 10 global Biopharmaceutical company, several of the world's leading preclinical Contract Research Organisations and JOINN, China's largest provider of pre-clinical studies.
Instem's balance sheet remains strong with net cash of approximately £2.2m at 31 December 2012 (31 December 2011: £2.9m). Due to a number of significant contracts falling in the final quarter of the year, the related cash inflow is now expected in the first quarter of 2013.
Phil Reason, CEO of Instem plc, commented: "We are delighted to have signed such high calibre contracts in the final quarter of 2012. It was especially pleasing that these contracts were representative of the breadth of our innovative product set in its entirety, including purchases of Provantis and Centrus alongside our Standard for Exchange of Nonclinical Data (SEND) module and our newly launched Logbook solution.
"Underlying demand for Instem solutions remains strong, despite uncertainty remaining in the pharmaceutical market due to structural changes. In the medium term, we expect these changes in the market to drive the requirement for operational efficiencies which our software facilitates. Therefore with our extensive customer base, broad product set and market leading position, we view the future with confidence."
Notice of Results
The Company expects to report its results for the year ended 31 December 2012 on 27 March 2013.
For further information, please contact:
Instem plc | +44 (0) 1785 825 600 |
Phil Reason, CEO | |
Nigel Goldsmith, CFO | |
N+1 Singer (Nominated Adviser & Broker) | +44 (0) 20 7496 3000 |
Aubrey Powell | |
Joe Stroud | |
Newgate Threadneedle | +44 (0) 20 7653 9850 |
Caroline Evans-Jones | |
Fiona Conroy |
About Instem plc
Instem is a leading supplier of IT solutions to the early development healthcare market. Instem's pre-clinical study management solutions accelerate drug and chemical development by increasing productivity, automating processes and enhancing practices that lead to safer and more effective drugs.
Instem has over 130 customers in North America, Europe, China, India and Japan, including 16 of the top 20 pharmaceutical and biotech companies such as GlaxoSmithKline and AstraZeneca. The Group employs over 110 people in seven offices in the US, UK, China and India; and has a full service distributor in Japan. It is estimated that approximately half of the world's pre-clinical drug safety data has been collected over the last 20 years via Instem software, making Instem an ideal partner to help unlock the scientific/commercial value from these legacy repositories.
To learn more about Instem please visit the Company's website, www.instem.com, or its investor centre http://investors.instem.com/