02:00 Mon 13 Jan 2020
Instem plc - Trading Update
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Trading Update
Financial Highlights
Organic growth was strong, with revenues c.12% higher than 2018 and EBITDA during the Period in line with management's expectations. Recurring revenue increased as the transition towards Software as a Service (SaaS) continued, resulting in further improved earnings visibility. Technology-enabled outsourced services grew strongly during the Period.
Net cash at
Operational Highlights
Data Collection, Regulatory Solutions and Informatics all performed well with the positive market backdrop and strong positioning underpinning momentum.
As expected, the combination of regulation and repeat orders accounted for continued strong growth within our SEND (Standard for the Exchange of Nonclinical Data) technology-enabled outsourced services. In addition, our Study Management business benefited from further increases in order volume with recurring revenue and renewal rates remaining high.
Our AI powered Informatics service demonstrated continued progress, principally driven by the increasing application of artificial intelligence across the Pharmaceutical industry. Growing demand for Target Safety Assessments ("TSA") has been core to this business and is now complemented by November's earnings enhancing acquisition of
Outlook
The Company has established a highly scalable platform with improved operational gearing as growth is delivered. Key opportunities moving forward are centred on continued organic revenue growth, further margin improvement and accretive M&A. Strong performance across our operations, combined with healthy new business pipelines, underpin management's confidence that the momentum achieved during 2019 will continue into the current year.
Phil Reason, CEO of
For further information, please contact:
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+44 (0) 1785 825 600 |
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 |
Richard Lindley Rachel Hayes |
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Walbrook Financial PR |
+44 (0) 20 7933 8000 |
Nick Rome |
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Tom Cooper 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 now 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
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