Instem's full year results to be behind expectations, shares plunge

21st Nov 2016 10:10

(ShareCast News) - Shares in Instem plunged on Monday after the healthcare computer services company warned full year results would be behind expectations as its clinical business had "further deteriorated" from the first half of the year.Instem Clinical has been hit by a slowdown in the clinical market and while the company is focused on resolving the problem, the clinical business will fall "materially" short of its financial targets this year.However the business is expected to return to profit with revenue growth in 2017.Also on the upside, the AIM-listed company also said that the momentum in other areas has continued, particularly the US Food and Drug Administration mandated standard for the exchange of non-clinical data has seen increased activity, with the company winning the majority of new business.Despite this, the overall outturn for the year is dependent on the signing of contracts and decisions on a small number of these contracts worth about £1.2m, which may be deferred to next year.But the company remained upbeat for 2017, due to favourable market conditions, investment in the business and full year contributions from the recently acquired France-based Notocord in September, a data analysis company, and software company Samarind in May, which are performing in line with expectations.Shares in Instem were down 25.55% to 215p at 1032 GMT.