Strong performance across the group's operations, combined with healthy new business pipelines, underpin management's confidence that the momentum achieved during 2019 will continue into the current year.
The company revealed that revenues in 2019 were around 12% higher than in 2018 with underlying earnings (EBITDA) in line with management's expectations.
Recurring revenues increased as the company continues to make the transition towards a software-as-a-service (SaaS) business model.
The Data Collection, Regulatory Solutions and Informatics divisions all performed well.
Instem highlighted the progress of the Informatics division, where the increasing use of artificial intelligence (AI) across the pharmaceutical intelligence plays to the division's strengths.
Growing demand for target safety assessments has been core to this business and is now complemented by November's earnings enhancing acquisition of Leadscope, which extends the company's reach, provides strong cross-selling opportunities and improves the visibility of earnings, Instem said, adding that the Leadscope integration plan is progressing well.
Meanwhile, as expected, the combination of regulation and repeat orders accounted for continued strong growth within Instem's SEND (Standard for the Exchange of Non-clinical Data) technology-enabled outsourced services.
In addition, the group's Study Management business benefited from further increases in order volume with recurring revenue and renewal rates remaining high.
Instem ended the year with net cash of £5.9mln.
"The company continues to benefit from a buoyant market and remains well placed across all parts of the life sciences industry, from discovery to post-marketing,” said Phil Reason, the chief executive officer of Instem.
“We have developed a strategy that sees the business benefiting from increasing levels of recurring revenues and a broad portfolio of products, enabling increased cross-selling opportunities. Added to this, the move to SaaS provides for improved margins and quality of earnings,” he added.