13th Jan 2020 09:40
(Alliance News) - Instem PLC said Monday it experienced strong growth in 2019, with revenue up more than 10% and earnings meeting expectations.
In a trading update for the year ended December 31, the provider of IT solutions to the life sciences market said earnings before interest, tax, depreciation and amortization was in line with management expectations, while revenue was 12% higher than in 2018.
Adjusted Ebitda was GBP4.1 million in 2018. Revenue was GBP22.7 million, meaning 2019 revenue is expected to have been about GBP25 million. For the six months ended June 30, revenue was GBP11.7 million.
Recurring revenue increased in 2019 as the transition towards software as a service continued, resulting in further improved earnings visibility, the company said.
Technology-enabled outsourced services grew strongly during the period, the company noted, with Data Collection, Regulatory Solutions and Informatics all performing well with the positive market backdrop and strong positioning underpinning momentum.
Net cash at December 31 was GBP5.9 million.
"Strong performance across our 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 said.
Phil Reason, chief executive officer, said: "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."
"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," Reason said.
Instem shares were down 0.8% in London at 491.00 pence each on Monday.
By Loreta Juodagalvyte; [email protected]
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