“Recurring revenue and SaaS [pay-as–you-go] software revenue growth of 21% and 38%, respectively, were particularly pleasing,” said Phil Reason, chief executive.
The one weak spot was the clinical arm, where Instem had already flagged the performance was going to be well short of targets, but Reason expects sales growth elsewhere to offset any further weakness in 2017.
In particular, he highlighted growing momentum at the KnowledgeScan big data analytics and insights service, introduced in 2016, while there would be full year contributions from the Samarind and Notocord acquisitions.
Changes to the way US regulator the logs and monitors drugs in trials have also helped Instem and the FDA regulations will drive further market growth.
Even so, there will be an investment cost will be in the short term and Reason said “near term profit will be significantly reduced by this and other investment across the group,” but he remains upbeat over the longer term.
Profits in 2016 were £23,000 (£361,000 loss), though on an adjusted basis there was a dip to £700,000 from £1.7mln.