Instem plc – Final Results
Instem (AIM: INS.L), a leading provider of IT solutions to the global early development healthcare market, announces its unaudited full year results for the year ended 31 December 2018.
Financial Highlights:
- Revenues increased 8% to £22.7m (2017 restated*: £21.1m)
– Software as a Service (SaaS) revenues increased 25% to £5.5m (2017: £4.4m)
– Recurring revenues (annual support and SaaS) increased 6% to £13.7m (2017: £12.9m) - Adjusted EBITDA** of £4.1m (2017 restated*: £2.4m)
- Reported profit before tax of £1.7m (2017 restated*: £0.3m)
- Basic earnings per share of 9.2p (2017 restated*: 4.1p)
- Fully diluted earnings per share of 8.7p (2017 restated*: 4.0p)
- Adjusted*** fully diluted earnings per share of 15.5p (2017 restated*: 11.0p)
- Net cash balance as at 31 December 2018 of £3.6m (2017: £3.1m)
*Restated due to the adoption of IFRS 15 and its impact on revenue recognition that accounts for £0.4m of additional revenue and £0.3m of EBITDA in FY18, which had previously been recognised in FY17.
**Earnings before interest, tax, depreciation, amortisation and non-recurring costs.
***After adjusting for the effect of foreign currency exchange on the revaluation of inter-company balances included in finance income/(costs), non-recurring items and amortisation of intangibles on acquisitions. Profit is adjusted in this way to provide a clearer measure of underlying operating performance.
Operational Highlights:
- SEND outsourced services contract wins with two top five global non-clinical Contract Research Organisations (“CROs”) each worth in excess of £1m
- Growing shift towards a SaaS based delivery and revenue model
- Contract win with leading Fortune 500 Company which adopted Samarind RMS solution for its worldwide medical products regulatory tracking system
- 500 additional Provantis® users licensed by our largest CRO client
Phil Reason, CEO of Instem, said: “With increasing momentum in the business from recent contract wins and the growing pipeline, we are confident about the outlook for the Group for 2019 and beyond.”
“While our strategy remains focused on Instem’s organic revenue growth, expanding operational gearing and improving positive cashflow, management will continue to consider complementary acquisition targets to further develop our position as a market leading provider of IT solutions to the global life sciences market.”