29th Sep 2015 11:32
LONDON (Alliance News) - Healthcare IT company Instem PLC on Tuesday said it swung to a pretax profit in the first half thanks to increased revenue and stronger demand in the pre-clinical and clinical sectors.
The company said its pretax profit for the six months to the end of June was GBP274,000, compared to a GBP672,000 loss a year earlier, as revenue rose to GBP7.5 million, up 31% year-on-year from GBP5.7 million. Recurring revenue for the group increased to GBP5.0 million, up 19% and now represents 67% of the company's total revenue.
Instem said its saw stronger demand in both the pre-clinical and clinical sectors for its services, with robust order intake and market share gains made by its ALPHADAS product suite.
"Performance in the first half of 2015, from both a revenue and profit perspective, has continued the strengthening trends seen in the second half of 2014. Research and development pipelines in the pharma industry continue to grow, particularly in the earlier phases of development in which Instem specialises," said Phil Reason, Instem's chief executive.
"With a solid backlog of existing orders, high levels of customer retention and a growing prospect pipeline, trading is expected to be in line with management expectations for the full year 2015 and we have confidence in the opportunities for 2016," Reason added.
Shares in Instem were down 5.0% to 190.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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