Instem PLC (AIM:INS) said organic revenue grew strongly in the year just gone as it confirmed that profits would be in line with market expectations.
Looking ahead, the company, a provider of IT solutions to the life sciences market, has “positioned itself to deliver continued growth, both organically and via acquisition”, investors were told in a trading statement.
The update revealed turnover for the 12 months ended December 31, 2022, was up 28% to £59mln with recurring sales of £34mln of that total, up 34% year on year.
While operating profit was hit by salary inflation, the group successfully implemented price increases that ‘positively impacted’ the second-half performance.
Instem said it remained cash generative with a closing balance of £13.7mln as of the period end.
Underlying progress was aided by the contributions made by three acquisitions completed in 2021: The Edge Software Consultancy, d-Wise Technologies, and PDS Pathology Data Systems.
"Post completion of the acquisitions, we have proven our ability to scale rapidly and win and service larger contracts,” said Instem chief executive Phil Reason in the update.
“We remain focused on further growing SaaS revenues, resulting in enhanced visibility and a higher margin revenue mix. Looking forward we expect to see the further benefit to the enlarged group as we convert a strong current order book," he added.
Reason extended his thanks to independent director David Sherwin, who is stepping down from his role today, January 31, 2023.
“David initially joined Instem as a trainee accountant in 1973 and was finance director of the previously publicly listed Instem plc from 1984 to 1998,” said the CEO. “David has been a non-executive director of the group ever since. He has seen much change over that period, during which his support, guidance and friendship have always been a constant."