Instem Plc (LON:INS), the developer of software used by the life sciences industry to collate and transmit data, said first-half trading was in line with market expectations.
The highlight was the performance of its SEND platform, with the value of contracts won thus far in 2018 exceeding the total for all of last year.
In all, it had 103 orders in the first six months from 50 different clients.
Instem said the contracted value of the SEND-related new business was up 190% year-on-year, while the pipeline continues to grow, driven by the US Food & Drug Administration’s investigational new drug rules.
SEND stands for Standard for the Exchange of Nonclinical Data and is a protocol set up by the US Food and Drug Administration. It ensures that companies present data in a consistent format.
Sending the right message
It said a further shift towards providing its software as a service (rather than making one-off sales), combined with “increasingly material recurring outsourced services revenue”, will see a continued improvement of earnings visibility.
Both its Provantis and Samarind products are accessible via the cloud.
Financially, Instem has a solid base with net cash of £3.7mln at June 30.
"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," said chief executive Phil Reason.
Shares more than double in value
The shares, which have more than doubled in value in the year to date, rise 7% in morning trade to change hands for 315p. This values the business at £50mln.
In a note to clients, Progressive Equity said: “In our view, the overall tone of the update is optimistic and the outlook statement positive.”