News blog
Instem
- BY: Andrew Hore |
- POSTED: 01/04/2012 |
Instem’s figures were slightly better than the downgraded forecasts from January when the healthcare IT firm said that clients were delaying orders.
Revenues grew 8% to £10.8m in 2011, with 70% of those revenues classed as recurring. SaaS revenues rose 29% to £1.02m. the revenue growth came from the contribution by recent acquisition BioWisdom. Underlying profit dipped from £2.15m to £1.97m.
The business was cash generative last year but there was a large increase in trade debtors because of the large number of customers secured near to the end of the year. Net cash was £2.87m at the end of 2011 and this should increase unless Instem finds acquisitions to spend its cash on.
Instem helps pharma companies got identify the drugs that are most likely to succeed. There is a strong order book and good levels of potential work. Asia Pacific is growing fastest and Instem has just set up in India.
Liontrust has built up its stake in Instem to 7.69%.
At 167p a share, Instem is valued at £19.7m.
House broker N+1 Brewin expects a jump in underlying 2012 profit to £2.2m. The shares are trading on 14 times prospective 2012 earnings.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMarch2012_30.pdf
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