08:00 Mon 23 Jul 2018
Instem plc - Trading Update
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Trading Update
Results in-line with management expectations
SEND contract value in H1 2018 exceeds that for the entire FY2017
Financial Highlights
Trading for the Period was in-line with management expectations. Net cash as at
Operational Highlights
There were positive contributions in most areas, with several significant new client wins in addition to existing customers extending and expanding their adoption of
Investment in
Importantly, the business continued to expand its SaaS delivery model for accessing its solutions via the Instem Cloud with both Provantis® and Samarind RMS being deployed via Software-as-a-Service by additional multinational corporations.
SEND Market Update
The Regulatory Solutions business performed particularly strongly during the period following the latest FDA mandate of the Standard for the Exchange of Non-clinical Data ("SEND").
Increasing Number of Contract Wins
Orders for the Company's SEND software solutions and technology-enabled SEND out-sourced services over the period have increased year-on-year with 103 orders won during the six-month period ended
These new orders came from 50 unique clients during the period, compared with 32 for the equivalent period last year and the Company continues to win the overwhelming majority of all business quoted for.
All of
Increasing Contract Value
The total contracted value of SEND-related new business for the current period increased approximately 190% over the corresponding period last year with outsourced services orders particularly strong.
Increasing Pipeline
The Company continues to believe that this rapid growth has been largely driven by the IND ('Investigational New Drug') legislation from the FDA, which mandated that studies started after
Future demand appears to be similarly robust and the Company has a strong SEND new business pipeline for both technology and service related sales, with both the number and value of SEND contracts expected to increase in the second half of 2018 and expected to be significantly ahead of last year.
Outlook
The further shift towards a SaaS based revenue model, combined with increasingly material recurring outsourced services revenue, will see a continued improvement of earnings visibility. This helps position the Company strongly to meet management's full year expectations.
"The financial year has started well and we are confident further new business, the delivery of recent contract wins and strong operational management will ensure we meet our expectations for the full year."
For further information, please contact:
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+44 (0) 1785 825 600 |
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N+1 Singer (Nominated Adviser & Broker) |
+44 (0) 20 7496 3000 |
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Walbrook Financial PR |
+44 (0) 20 7933 8000 |
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