Proactive Investors - Run By Investors For Investors

Instem hails SEND platform as it delivers upbeat trading update

Instem said all three areas of the business - data collection, regulatory solutions and informatics – made “positive contributions” as it reported that profit margins had strengthened
keyboard with the word approved on it
The company develops and sells software that aids the regulatory submission process for drug makers

Instem PLC (LON:INS) saw its shares rise on Tuesday after the firm, which creates and sells software used by drug developers, said orders for its SEND platform grew 500% year-on-year as it told investors that 2018 trading had been in line with forecasts.

SEND stands for Standard for the Exchange of Nonclinical Data and demand for the system benefited as clients upgraded and extended their use of the company’s products.

WATCH: SEND platform the star first-half performer for Instem

Instem said all three areas of the business - data collection, regulatory solutions and informatics – made “positive contributions” as it reported profit margins had strengthened.

Customers are now shifting away from the software licence model to recurring, software-as-a-service, which aids customer retention and allows users to incrementally build the list of services it buys from the AIM-listed group.

Heavy investment pays off

"Instem has invested significantly in the business in recent years and these results further illustrate such investment converting into profitable growth,” said chief executive Phil Reason.

“In addition to a host of new client wins, many existing clients have extended their use of Instem's products and services and, importantly, have transitioned to our SaaS solutions.”

The company said it ended the year with £3.6mln, which will increase as delayed payments from a small number of large pharma customers are received.

This, Instem added, will return the company to “more normal working capital cycles”.

In the update, the company referred to an ongoing German legal dispute due in court for an initial hearing on Tuesday.

Instem said it is defending the action. It didn’t go into the details of the case, but said it does not affect its “ongoing operations”.

While it believes the action should be dismissed, a provision against the cost of litigation made in 2017 will stand in the 2018 accounts.

In early afternoon trading, Instem shares were 7.5% higher at 273p.

 -- Adds share price --

View full INS profile View Profile

Instem PLC Timeline

Related Articles

mobile payment
June 22 2018
MySQUAR wants to beef up the mobile payments side of its operations in anticipation of a surge in demand for those services in a country where only 20% of the adult population have a bank account
Procurement services cogs
October 04 2018
Revenues in the latest half-year rocketed 254.5% to £596,000, more than the entirety of 2017
Person watching TV on a smartphone
October 01 2018
"The business model is proving solid and with a higher percentage of revenues coming from recurrent subscriber-based licence fees, we are steadily reaching the point of profitability," said chief executive, Jose Luis Vazquez.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use