Instem PLC (AIM:INS), which supplies software used by some of the world’s biggest life sciences companies, said it had a strong order book that will help it build on the success of last financial year.
In its full-year results statement, which showed revenues grew by 28% and underlying earnings were up 32%, the group said it also expected to benefit in 2023 from ‘industry consolidation’.
“We will continue to focus on organic and, where appropriate, acquisitive growth opportunities as we build out high-margin revenue lines while delivering on our commitment to helping our clients bring their life-enhancing products to market faster,” said Phil Reason, Instem’s chief executive.
Turnover for the 12 months ended December 31, 2022, was up £12.9mln to £58.9mln, while EBITDA jumped to £10.9mln from £8.3mln in the same period last year.
Software-as-service revenue grew 41% to £13.7mln while recurring business advanced 43% to £34.5mln. The company generated just under £10mln from operations, meaning the cash balance as of the period-end was £14mln.
The results reflected contributions from three acquisitions made in 2021 – The Edge, dWise Technologies and PD Pathology – which are now fully integrated and, crucially, met their earn-out target in full.
"Notwithstanding wider concerns around the funding environment for drug discovery and development, we have seen no evidence of slowdown to date and our focus remains on further broadening our portfolio of products and solutions that are attractive across the spectrum,” said CEO Reason.
“This will continue to drive value while demonstrating the strength of our proposition," he concluded.