All three parts of the business – data collection, informatics and regulatory solutions – performed well in the six months ended June 30, investors were told.
Total revenues grew by 11% to £11.7mln, while new software as a service income more than doubled to £1.1mln. Recurring sales, meanwhile, were £7mln.
Underlying earnings (EBITDA) advanced £300,000 to £1.7mln, while basic EPS were 2p, up from 0.3p a year earlier.
Importantly for a growing business, Instem saw a net operating cash inflow of £3.2mln, double the figure at the same point last year. Its cash balance was £6mln as at the period-end.
The company said it expects to recognise £1mln of a £1.7mln contract with Provantis in the second half.
Chief executive Phil Reason said the market backdrop for its products was positive, “with the pharmaceutical industry increasing investment in the types of software and services Instem provides to match the expanding drug pipeline and to satisfy increasing regulatory requirements”.
Technology helps customers get products to market faster
Instem develops and sells software that aids data collection and the regulatory submission process for drugmakers.
In short, its tech helps its customers to bring their products to market faster.
The AIM firm owns more than a dozen software applications, including its flagship SEND technology. 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.
Among Instem’s other top products is Samarind – a software-as-a-service (SaaS) platform that enables companies to register and track their regulated products worldwide by maintaining a single integrated database, which is then used to update drugs watchdogs as products change over time.
Looking ahead, CEO Reason told the market: “Strong order intake and pipeline growth during the period enabled accelerated investment in personnel to ensure we execute on these opportunities.”