Instem plc (AIM: INS.L), a leading provider of IT solutions to the global life sciences market, announces its unaudited half year results for the six months ended 30 June 2019.
Financial Highlights
· Total revenues were up 11% to £11.7m (H1 2018: £10.5m)
· New Software as a Service orders increased to £1.1m (H1 2018: £0.5m)
· Recurring revenue (annual support and SaaS) increased to £7.0m (H1 2018: £6.5m)
· EBITDA* of £1.7m including a beneficial IFRS16 adjustment of £0.3m (H1 2018: £1.4m)
· Profit before tax of £0.4m (H1 2018: £0.1m)
· Basic earnings per share of 2.0p (H1 2018: 0.3p)
· Diluted earnings per share of 1.9p (H1 2018: 0.2p)
· Net operating cash inflow of £3.2m (H1 2018: inflow £1.6m)
· Cash balance as at 30 June 2019 of £6.0m (H1 2018: £3.7m)
*Earnings before interest, tax, depreciation, amortisation and non-recurring items.
Operational Highlights
· All three areas of the business, Data Collection, Informatics and Regulatory Solutions performed well during the period
· Continued transition towards SaaS based delivery and revenue model, in line with strategic objective to increase earnings visibility
Post Balance Sheet Highlight
· Awarded four Provantis contracts worth approximately £1.7m in aggregate, of which approximately £1.0m in revenue is expected to be recognised in H2 2019
Phil Reason, CEO of Instem plc, commented:
“Performance in the first half of the current year reflects both the strategic restructuring undertaken in prior years and the increasing efficacy of the Company’s leading technology and services. It was further underpinned by a positive market backdrop, with the pharmaceutical industry increasing investment in the types of software and services Instem provides to match the expanding drug pipeline and to satisfy increasing regulatory requirements.”
“Strong order intake and pipeline growth during the period enabled accelerated investment in personnel to ensure we execute on these opportunities.”
“Our stated strategy of moving clients from perpetual licences to SaaS has been more successful than we anticipated and consequently some short-term licence revenue is being replaced. Whilst this will have a slight impact on earnings in the current year, it will generate longer-term recurring revenues going forward.”
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