Published on: March 26, 2014

Foundations looking solid; extensions under way

Instem has reported FY13 results that were modestly ahead of our expectations with revenues around £0.4m (3%) better than we anticipated, and a beat of c£0.1m at the Adjusted PBT level. The Group reports strong customer retention rates and notes a number of significant deals and client wins, with the increase in new SaaS deals a notable plus. Instem has increased its share of the preclinical market, and the entry into the early phase clinical market (via the Logos Technologies acquisition) is now fully integrated and ‘performing strongly’. The outlook statement suggests that end markets are showing some improvement, and takes a confident tone towards the prospects for FY14. We nudge our Adjusted EBITDA estimates up by a conservative 2% for both FY14 and FY15.

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