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Instem Swings To Loss On One-Offs, But Underlying Profit Grows

5th Apr 2016 08:46

LONDON (Alliance News) - Healthcare IT services company Instem PLC on Tuesday said it swung to a pretax loss in 2015 due to a one-off payment made on a past acquisition, but said revenue and adjusted profit grew.

Instem said its pretax loss for the year to the end of December was GBP400,000, compared to a GBP200,00 profit a year earlier. The loss was down to the company booking a GBP1.4 million charge related to the deferred payment due on the 2013 acquisition of Logos Technologies, now the Instem Clinical division.

Adjusted profit, however, which strips out one-offs, rose to GBP1.7 million from GBP1.1 million, while earnings before interest, taxation, depreciation and amortisation increased to GBP2.5 million from GBP1.7 million.

Revenue grew to GBP16.3 million, up 22% from GBP13.4 million a year earlier, as recurring revenue grew 9.0% and software-as-a-service sales increased 14%.

"Our core addressable markets continue to grow in terms of the number of potential customers and the absolute size. Our products and services recorded significant year-on-year revenue growth during 2015 and we are pleased to report that we entered the new financial year with a strong forward order book," said Chief Executive Phil Reason.

Instem shares were up 5.1% to 227.50 pence.

By Sam Unsted; [email protected]; @SamUAtAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.


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