Instem shares up as revenue rises and earnings fall

19th Sep 2016 11:08

(ShareCast News) - Healthcare IT solutions company Instem announced its unaudited half year results for the six months to 30 June on Monday, with revenues increasing 21% to £9.1m and recurring revenues rising 6% to £5.3m.The AIM-traded firm reported an EBITDA increase of 34% to £1.2m, with adjusted profit before tax of £1.0m, up from £0.7m a year ago.Profit before tax was £0.1m, dropping from £0.3m, and basic earnings per share were 0.4p, just a quarter of the 1.6p reported in the first half of 2015.Instem's adjusted basic earnings per share were significantly higher, however, at 6.3p compared to 5.1p.Its seasonal net operating cash outflow was £1.5m, compared to £1.0m, and the company had a net cash balance at period end of £4.8m, up from £0.1m."The encouraging market dynamics in early drug development, including the new regulatory requirements driven by the Standard for the Exchange of Non-Clinical Data, have supported year-on-year revenue and underlying profit growth in the first half of 2016," said CEO Phil Reason."The acquisitions of Samarind in May and Notocord in September add to a strong pipeline of new business opportunities through the remainder of 2016 and into 2017."At 0916 BST, shares in Instem were up 0.93% at 276.55p.