Instem PLC (AIM:INS), which develops and sells software used by the life sciences industry, said it has a "healthy pipeline" of acquisition opportunities as it told investors first-half trading is in line with market expectations.
For the six months to 30 June 2023, the firm's revenue grew by 10.2% to around £29.7 million, bolstered by a 27% rise in recurring software revenue. As of 1 July, annual recurring revenue (ARR) was £41 million, up from £32 million at the same point in 2022.
Instem's cash position was £8.4 million after making £5.8 million in deferred payments related to previous acquisitions. This still leaves the company with headroom for further dealmaking.
On the operational front, Instem has embarked on its next growth phase, capitalising on the artificial intelligence (AI) market.
The company is amplifying its focus on in-silico solutions, leveraging its established business relationships.
The recent launch of Centrus and the transfer of the ToxHub Platform empowers clients to harness a unified repository, allowing the application of advanced algorithms.
Further bolstering its operational credentials, Instem renewed its longstanding contract with the US National Institute of Environmental Health Sciences' National Toxicology Program.
This renewal not only enhances revenue visibility but also paves the way for Instem to expand its in-silico footprint, investors were told.
Looking ahead, Instem remains bullish about its growth prospects. The company said it is strategically positioned to offer solutions spanning the entire drug discovery and development lifecycle.
"We are delighted with the continued momentum we are seeing, advocating our acquisition strategy and highlighting our standing across the drug research and development lifecycle," said chief executive Phil Reason.
"We believe there is significant potential to continue driving value and look forward to building on the company's growing market reach."