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Instem firing on all cylinders

Snapshot

  • Develops and sells software that aids data collection and the regulatory submission process for drug-makers
  • Recent results showed data collection, informatics and regulatory solutions businesses performed well 
  • Has a strong order book, which sets it up for the remainder of the year
Instem PLC -

Quick facts: Instem PLC

Price: 371 GBX

AIM:INS
Market: AIM
Market Cap: £60.46 m
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Our stated strategy of moving clients from perpetual licences to SaaS has been more successful than we anticipated and consequently some short-term licence revenue is being replaced

CEO Phil Reason

 

What the company does

Instem PLC (LON:INS) 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.

 

How is it doing?

The company enjoyed a solid first half as it cited the financial restructuring of recent years and the “increasing efficacy” of the company’s technology and services for its success.

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.

 

Looking ahead

CEO Phil 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.

“Our stated strategy of moving clients from perpetual licences to SaaS has been more successful than we anticipated and consequently some short-term licence revenue is being replaced. 

“Whilst this will have a slight impact on earnings in the current year, it will generate longer-term recurring revenues going forward.”

 

Share performance in the year to date

The stock has advanced 68% on the back of some rock-solid progress.

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Instem PLC reports strong demand for its informatics services

Instem PLC's (LON:INS) chief scientific officer and head of its informatics arm Dr Gordon Smith Baxter tells Proactive London the value of new orders for the division has grown by 58% to £840,000. He says the firm's expansion into informatics is bringing them into contact with customers at an...

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