26th Mar 2014 09:31
LONDON (Alliance News) - Instem PLC Wednesday expressed confidence for 2014, benefiting from full-year contributions from recent acquisitions, as it saw pretax profit decline in 2013.
The company provides information technology products to the early development healthcare market.
The company posted a pretax profit of GBP698,000 in 2013, down from a pretax profit of GBP1.3 million in 2012, as revenue rose to GBP11.4 million from GBP10.7 million, although this was partly offset by higher operating expenses, and non-recurring costs of GBP1.5 million relating to two acquisitions during the year.
Instem acquired Logos Technologies in May 2013, and re-branded it Instem Clinical. The new business is fully integrated and performing strongly, Instem said. It also acquired Perceptive Instruments Ltd in November 2013, as entry into the in-vitro research and development market.
The company saw revenue from its Software as a Service business rise to GBP1.5 million from GBP1.1 million, as it signed deals with two pharmaceutical companies, and a ten-year deal with a US government body, the National Institute of Environmental Health Sciences.
Instem noted a shift in the pharmaceutical industry towards early-stage development work, as pharmaceutical companies seek to renew their maturing pipeline. As a a result, Instem is beginning to see an improvement in end markets, as it targets earlier stages of drug development.
The company said it won't pay a dividend for 2013.
Shares in Instem were trading up 5.3% at 180.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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