Instem 'confident' on outlook after swinging to first-half profit
Source - SMW
IT company Instem swung to a profit Monday as the number of drugs in the earlier stages of the R&D lifecycle in the first half of the year swelled to a record, lifting revenue growth.
For the six months to 30 June 2018, reported pre-tax profits was £0.1m, compared with a loss of £0.6m a year earlier, and revenues increased 2% from £10.3m to £10.5m.
Recurring revenue -- derived primarily from support & maintenance fees and SaaS subscriptions – was flat at £6.5m, representing 62% of total revenue, while revenue from outsourced services increased to £1.1m from £0.3m a year earlier.
Instem said it continued to win the majority of new business placed in non-clinical -- its largest revenue contributor -- particularly in standard for the exchange of nonclinical data (SEND) technology and related services.
The company said it was confident about the outlook for the group for the rest of 2018 and beyond, owing to increasing momentum in the business from recent contract wins and the growing pipeline. 'We are very pleased with the performance of the business during H1 2018, with regulatory requirements delivering the expected significant increase in demand for our technology enabled outsourced services,' said Phil Reason, CEO of Instem. 'Growth was also particularly strong in the Asia-Pacific region, with bookings up over 60% on the prior year, primarily attributable to the continuing funding of pharmaceutical Research & Development by the Chinese government.'
At 8:22am: (LON:INS) Instem Plc share price was +11p at 311p