Source - SMW
Instem's total revenues increased 13% to £10.3m in the six months to the end of June with recurring revenues up 23% at £6.5m of which software-as-a-service was £1.7m (H1 2016: £1.2m).

  EBITDA fell to £0.6m (H1 2016: £1.2m) and adjusted pre-tax profits of £0.1m  were down from  £1.0m.

The reported pre-tax loss of £0.6m compared with a profit of £0.1m last time.

Chief executive Phil Reason said: 'Following a period of planned strategic progress, Instem is now undoubtedly better positioned for profitable growth than ever before.  

'While our target markets are generally experiencing stability or growth, our focus is moving toward annually recurring revenue and higher margins, with less reliance on perpetual software license sales.

'We are particularly excited by the growth potential for our technology-enabled outsourced services for SEND and Target Safety Assessment where there are increasing regulatory drivers, competitive differentiators and customer activity remains high.

'The continued investment in our outsourced services team has increased our monthly revenue generation and the full benefit of the overhead reductions implemented at the end of the first half of the year will also be realised in the second half of 2017 and beyond.   

'Consequently, we anticipate earnings for the full year to be in line with market expectations.'

At 8:07am: (LON:INS) Instem Plc share price was -3p at 166.5p