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Shares in Instem (LON:INS), which provides the software used by drug developers, were 8% higher in early trade after the company provided a upbeat assessment of current trading trends.
In fact the company said its revenues for the year ended December were up £2.4mln and ahead of expectations at £15.8mln. Its cash position (it has around £2.1mln in the bank) is also ahead of current market estimates.
Its recurring sales are currently in the order of £9.6mln, while new and existing clients have contributed to creating a “strong backlog of orders”.
Earnings will be in line with expectations.
The outcome must be particularly satisfying for the management, led by chief executive Phil Reason, as 2015 was a year of investment designed to drive future growth.
Acquisitions Logos and Perceptive, unveiled two years ago, have now both achieved their earn-out targets, enabling full integration into the wider group.
"All the indicators for 2016 suggest it will be another year of profitable growth for the business with the inherent operational gearing delivering increased earnings, further enhancing shareholder value," CEO Reason said.
At 8.25am, the shares were changing hands for 230p for a rise of 8.15%.