Buoyant Instem sees improvement in end markets

26th Mar 2014 15:50

Shares in Instem, a provider of IT systems to preclinical biotech companies, rose on encouraging results for 2013 and news that its end-markets were returning to health. The AIM-listed company drove adjusted earnings up 10.3% to 8.6p per share on a 8% increase in adjusted operating profit to £8.2m and sales up 7% to £11.4m. Cash balances at the year-end stood at £2.1m.Instem signed several major deals during the year, including software-as-a-service (SaaS) contracts with two of the word's largest drug companies.Chief Executive Phil Reason said: "The group has continued to increase its share of the preclinical market and made important strategic progress including expansion of its product sets and entry into the early-phase clinical market." Looking to the current financial year, Reason added: "Instem, like other pharmaceutical services companies, is beginning to see an improvement in its end markets, with the global pharmaceutical market re-focusing its efforts into early stage development work. "In addition, the industry's regulatory and fiscal pressures continue to work in Instem's favour, driving demand for all areas of our product portfolio."2014 will also see the benefit of a full year's contribution from last year's acquisitions Instem Clinical and Perceptive Instruments acquisitions.Shares in the company were up 7.6% to 184p at 16:00 on Wednesday.OH