19th Sep 2016 08:29
LONDON (Alliance News) - Instem PLC on Monday said its recent acquisitions will bolster its pipeline of new business opportunities for the remainder of this year and next, as Instem reported a decline in pretax profit for the first half of 2016.
The company, which makes IT products for the healthcare market, reported a pretax profit of GBP128,000, down from GBP274,000 the prior year, as revenue rose to GBP9.1 million from GBP7.5 million.
The decline in profit was due to one-off costs of GBP126,000 in the half related to those acquisitions, plus a GBP351,000 foreign exchange loss.
Operating expenses increased by GBP1.2 million compared to the previous year, as Instem invested in staff and facilities.
In May, it acquired Samarind Ltd for GBP2.5 million, and following the half-year end agreed to acquire Notocord for up to GBP3.6 million. It is now in the process of integrating the two acquisitions, it said, and analysing cross-selling opportunities.
"The encouraging market dynamics in early drug development, including the new regulatory requirements driven by the Standard for the Exchange of Non-Clinical Data, have supported year-on-year revenue and underlying profit growth in the first half of 2016. The acquisitions of Samarind in May and Notocord in September add to a strong pipeline of new business opportunities through the remainder of 2016 and into 2017," said Chief Executive Officer Phil Reason in a statement.
Shares in Instem were up 0.9% at 276.55 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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