Instem revenues continue to grow as SaaS transition progresses

13th Jan 2020 11:37

(Sharecast News) - IT solutions provider Instem said on Monday that revenues had continued to grow during 2019 as a result of the group's pivot towards a more software-as-a-service based model.
Instem said organic growth was strong in the year, with revenues about 12.0% higher than 2018 and underlying earnings during the period in line with management's expectations.

Recurring revenue increased as the transition towards SaaS continued, resulting in further improved earnings visibility. Technology-enabled outsourced services also grew strongly during the year.

Moving forward, the AIM-listed firm was eyeing continued organic revenue growth, further margin improvement and accretive mergers and acquisition.

Chief executive Phil Reason said: "The company continues to benefit from a buoyant market and remains well placed across all parts of the life sciences industry, from discovery to post marketing.

"We have developed a strategy that sees the business benefiting from increasing levels of recurring revenues and a broad portfolio of products, enabling increased cross-selling opportunities."

As of 1135 GMT, Instem shares had slipped 1.52% to 487.49p.