Instem PLC's (LON:INS) chief executive Phil Reason said the software group will continue to focus on organic growth after a solid year, though it will also consider “complementary acquisition targets”.
His comments were made alongside the publication of full-year results, which showed turnover grew 8% to £22.7mln; around a quarter of that number came in the form of higher-margin, recurring software-as-a-service (SaaS) revenues.
Underlying earnings (EBITDA) for the 12 months to December 31 grew by around 70% to £4.1mln, underlining the operational gearing of the business. Reported profit before tax was £1.7mln, up from £300,000 a year earlier.
Importantly for a company in growth mode, Instem had £3.6mln in the bank, up £500,000 on a year ago.
The company has developed and sells software used by pharma and biotech companies making clinical and pre-clinical filings to international regulators.
Contract wins
In the year just gone, it won contracts worth more than £1mln each for its SEND outsourced service from two top-five global contract research organisations.
At the same time, a Fortune 500 business has adopted its Samarind RMS solution, and it has signed up 500 additional Provantis users.
Reason told investors: "With increasing momentum in the business from recent contract wins and the growing pipeline, we are confident about the outlook for the Group for 2019 and beyond.
"While our strategy remains focused on Instem's organic revenue growth, expanding operational gearing and improving positive cash flow, management will continue to consider complementary acquisition targets to further develop our position as a market leading provider of IT solutions to the global life sciences market."