20th Jul 2020 12:18
(Alliance News) - Instem PLC on Monday said trading across its business in the first half of 2020 was in line with expectations despite the wider uncertain backdrop and large-scale negative impact of Covid-19.
The Staffordshire-based IT solutions provider said revenue for the six months ended June rose 20% from GBP11.7 million recorded for the comparative period the year prior, with like-for-like revenue growth - excluding the Leadscope acquisition in November 2019 - at around 12%.
While there was a small negative impact due to the inability to undertake client site based professional services work and secure new software licenses in the academic segment as a result of Covid-19, Leadscope recorded a strong performance partly due to revenue synergies being realised quicker than initially anticipated.
Looking ahead, Instem said that in light of the continued strong organic and acquisitive growth potential, it is confident it is well-positioned to take advantage of opportunities that arise throughout the remainder of the year and beyond in existing and adjacent markets.
"Trading during the period highlighted the resilience of our operations and the dedication of the entire Instem team as the company continued to grow despite the Covid-19 backdrop. We have been delighted to directly contribute to our clients' Covid-19 vaccine and therapy-related research & development activities and remain committed to prioritising these efforts over the second half. Following completion of the fundraise, we also aim to drive revenues and margins as we look to further consolidate the market," said Chief Executive Phil Reason.
In June, the company raised GBP15.8 million with the funds intended to help accelerate its acquisition strategy. Cash held as at the end of June was GBP9.1 million.
Shares in Instem were trading 2.8% higher at 466.90 pence each on Monday afternoon in London.
By Ife Taiwo; [email protected]
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