Instem trades in line as SEND revenues more than double

IT solutions group Instem told investors on Monday that its full-year performance looked set to be in line with expectations after witnessing SEND (the Standard for the Exchange of Nonclinical Data) revenues more than double.

Instem said all three areas of its business, data collection, informatics and regulatory solutions had performed well during the period, resulting in roughly 10% year-on-year revenue growth.

Software-as-a-Service based sales gained greater traction than expected during the period, with more new customers choosing SaaS subscriptions over perpetual licensing and a growing number of existing clients moving from on-premise deployments to SaaS, as planned.

"This increased SaaS revenue contribution has marginally reduced year-on-year total revenue growth for the period, due to the displacement of one-off licenses, however, forward revenue visibility continues to increase as the company enters the second half of the year," said Instem.

Elsewhere, Instem's regulatory solutions business continued to lead the Food and Drug Administration mandated market with its technology-enabled outsourced services, which delivers electronic submissions using SEND, with revenue increasing over 100% year-on-year.

Looking forward, the AIM-listed company said it was continuing to "build a healthy pipeline of new business", with the number of individual transactions "increasing significantly year-on-year" across all sectors.

Chief executive Phil Reason said: "The business has performed well during the period with above-average growth in new data collection clients and technology-enabled outsourced services growing strongly.

"We believe our SaaS value proposition offers both Instem and our customers enduring benefits and increases shareholder value as the visibility of our revenue continues to improve."

As of 1115 BST, Instem shares had picked up 2.54% to 364p.