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Instem profits climb as outsourced services revenue jumps
23rd Sep 2019 11:12
(Sharecast News) - Instem on Monday reported a jump in interim profits after booking double-digit revenue growth on the back of higher outsourced services and software as a service (SaaS) orders.
The life sciences IT services provider recorded a profit before tax of £0.4m for the six months ended 30 June, up from £0.1m in the same period a year ago, as revenue rose 11% to £11.7m.
Revenue from outsourced services more than doubled from £1.1m to £2.3m as the company received repeat orders from some of the world's largest pharmaceutical organisations.
Meanwhile, new SaaS orders increased from £0.5m to £1.1m, taking recurring revenue 8% higher to £7.0m as Instem continues to focus on increasing its high-quality SaaS based subscription revenue stream
The AIM-traded company said strong order intake and pipeline growth during the period had enabled accelerated investment in personnel to ensure the business can pursue new opportunities, though this resulted in operating expenses rising 11% to £9.9m.
Chief executive Phil Reason said: "Performance in the first half of the current year reflects both the strategic restructuring undertaken in prior years and the increasing efficacy of the company's leading technology and services. It was further underpinned by a positive market backdrop, with the pharmaceutical industry increasing investment in the types of software and services Instem provides to match the expanding drug pipeline."
Instem shares were up 2.03% at 382.60p at 1153 BST.
The life sciences IT services provider recorded a profit before tax of £0.4m for the six months ended 30 June, up from £0.1m in the same period a year ago, as revenue rose 11% to £11.7m.
Revenue from outsourced services more than doubled from £1.1m to £2.3m as the company received repeat orders from some of the world's largest pharmaceutical organisations.
Meanwhile, new SaaS orders increased from £0.5m to £1.1m, taking recurring revenue 8% higher to £7.0m as Instem continues to focus on increasing its high-quality SaaS based subscription revenue stream
The AIM-traded company said strong order intake and pipeline growth during the period had enabled accelerated investment in personnel to ensure the business can pursue new opportunities, though this resulted in operating expenses rising 11% to £9.9m.
Chief executive Phil Reason said: "Performance in the first half of the current year reflects both the strategic restructuring undertaken in prior years and the increasing efficacy of the company's leading technology and services. It was further underpinned by a positive market backdrop, with the pharmaceutical industry increasing investment in the types of software and services Instem provides to match the expanding drug pipeline."
Instem shares were up 2.03% at 382.60p at 1153 BST.