Instem H1 revenues grow despite Covid-19

IT solutions group Instem said on Monday that it has continued to perform well despite the wider backdrop and macro impact of the Covid-19 pandemic.

Instem stated that trading for the six months ended 30 June was in line with expectations as revenues increased by approximately 20%, with like-for-like sales growth of approximately 12% year-on-year.

Operational cash generation was also said to be strong, with a closing cash balance of £9.1m - up from £6.0m a year earlier.

The AIM-listed group also highlighted that its oversubscribed £15.75m fundraise had provided it with "significant capital" to accelerate its acquisition strategy, with a number of potential "compelling opportunities for bolt-on acquisitions" and more substantial targets having already been identified.

Looking forward, Instem said it was on track to continue trading in line with expectations and was confident that it was well-positioned to take advantage of opportunities that arise throughout the remainder of the year and beyond in existing and adjacent markets.

Chief executive Phil Reason said: "Trading during the period highlighted the resilience of our operations and the dedication of the entire Instem team as the company continued to grow despite the Covid-19 backdrop.

"We have been delighted to directly contribute to our clients' Covid-19 vaccine and therapy-related R&D activities and remain committed to prioritising these efforts over the second half."

As of 1100 BST, Instem shares were up 2.84% at 466.90p.