1st Apr 2019 10:11
LONDON (Alliance News) - Instem PLC on Monday expressed confidence in outlook for the new year as its 2018 profit multiplied due to cost savings and revenue growth.
Instem shares were trading 7.2% higher on Monday at 328.00 pence each.
The drug discovery software provider said pretax profit multiplied in 2018 to GBP1.7 million from just GBP252,000 reported a year prior, as revenue rose by 7.8% to GBP22.7 million from GBP21.1 million.
"The group benefited from a full year of the cost savings realised during 2017 with overall costs remaining flat year-on-year despite the growth in revenue, thus contributing to a much-improved profit performance," explained Chief Executive Phil Reason.
Development costs incurred during the year were GBP3.1 million compared to GBP3.3 million in 2017.
Growth was particularly strong in the Asia-Pacific region, Instem noted, with bookings up 37% on the prior year, primarily attributable to the continuing funding of pharmaceutical research & development by the Chinese government.
"With increasing momentum in the business from recent contract wins and the growing pipeline, we are confident about the outlook for the group for 2019 and beyond," said Reason.
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