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Instem profits more than double in first half

The IT solutions provider also highlighted 19% growth in recurring revenues during the period and expects the momentum to continue across the rest of the year

Instem PLC - Instem profits more than double in first half

Instem PLC (LON:INS) has reported a strong rise in profits in the first half of its current year as the group highlighted the “resilience” of its business model during the coronavirus pandemic.

For the six months ended June 30, the provider of IT solutions to the life sciences market reported an adjusted pre-tax profit of £2.1mln, up from £800,000 in the prior year, while total revenues jumped 20% to £14mln.

WATCH: Instem PLC has 'significant capital' to accelerate acquisition strategy after strong first half

The company also highlighted recurring revenue growth of 19% to £8.4mln during the half-year, while organic growth rose 12% to £13.1mln.

Looking ahead, Instem said it is continuing to trade in line with its expectations and anticipates that the momentum achieved in its first half will continue over the rest of the year.

The firm also highlighted that post-period it has raised £15.7mln in an oversubscribed placing to accelerate its acquisition strategy, as well as landing a £0.7mln contract with a top 30 pharmaceutical company.

"The performance in the first half of the year reflects the strength of the company's growing suite of solutions and services, the underlying market fundamentals and the tremendous performance of the entire Instem team, who have performed admirably in the challenging [coronavirus] environment”, Instem chief executive Phil Reason said in a statement.

"The organic growth achieved highlights the resilience of the Company's model, especially given the [coronavirus] backdrop, while the positive impact from Leadscope provides a strong reference point for the range of acquisitions that management is currently progressing following the post-period end fundraise”, he added.

Shares in Instem were steady at 515p in early trading on Monday.

Quick facts: Instem PLC

Price: 550 GBX

AIM:INS
Market: AIM
Market Cap: £114.81 m
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