Instem plc Trading Statement (9452B)
16 January 2018 - 6:00PM
UK Regulatory
TIDMINS
RNS Number : 9452B
Instem plc
16 January 2018
Instem plc
("Instem", the "Company" or the "Group")
Trading Statement
FY17 results in-line with market expectations with positive
outlook
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, announces a trading update for the
year ended 31 December 2017.
Financial Highlights
Financial results for the year ended 31 December 2017 are
expected to be in-line with market expectations, with net cash as
at 31 December 2017 of GBP3.1m (2016: GBP4.2m).
Operational Highlights
All areas of the business made a positive contribution to the
full-year financial performance, with many new client wins, as well
as existing customers extending their use of Instem's products and
services.
We have continued to work through a challenging period for our
early phase clinical business, but financially the 12 months under
review was helped by two significant new Alphadas clients placing
contracts, worth a combined value of approximately US$1.25million,
of which the up-front licence revenue portion was recognised in
2017.
It was particularly pleasing to see strong order intake for our
Regulatory Information Management software suite, ensuring that
this area performed in-line with the expectations set when the
Samarind business was acquired in May 2016.
Importantly for the Regulatory Solutions business, the US Food
and Drug Administration ("FDA") announced in December 2017 that the
next major milestone in the FDA's adoption of the Standard for the
Exchange of Non-clinical Data ("SEND") was now in force, mandating
that earlier stage drug approval submissions now fall under the
requirement to include SEND data packages. As expected, this has
stimulated significantly more technology enabled outsourced
services orders, contributing to increased SEND-related revenue in
2017 and providing a healthy backlog of orders to be delivered
during 2018.
We successfully delivered the first circa GBP0.75m of cost
savings from our mid-2017 restructuring, in line with the
annualised savings of GBP1.5m indicated in our 2017 Half Yearly
Report.
Phil Reason, CEO of Instem plc, commented: "After slower than
anticipated growth in H1 2017 the second half of 2017 has been much
stronger. Revenue increases and expense reductions have delivered a
strong increase in full-year profit and the sales order pipeline
has once again strengthened.
"The current period has started well and we draw your attention
to today's other Instem announcement outlining the award of a
significant two year SEND out-sourced services contract."
For further information, please contact:
Instem plc +44 (0) 1785 825 600
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser
& Broker) +44 (0) 20 7496 3000
Richard Lindley
James White
Walbrook Financial PR +44 (0) 20 7933 8000
Paul Cornelius instem@walbrookpr.com
Helen Cresswell
Sam Allen
About Instem
Instem is a leading provider of IT solutions & services to
the life sciences market delivering compelling solutions for Study
Management and Data Collection; Regulatory Solutions for
Submissions and Compliance; and Informatics-based Insight
Generation.
Instem solutions are in use by customers worldwide and enable
our clients to bring life enhancing products to market faster.
Instem's portfolio of software solutions increases client
productivity by automating study-related processes while offering
the unique ability to generate new knowledge through the extraction
and harmonisation of actionable scientific information.
Instem supports over 500 clients through offices in the United
States, United Kingdom, France, Japan, China and India.
To learn more about Instem solutions and its mission, please
visit instem.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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