Shares in Instem (LON:INS) ticked up on Monday, after the company reported a promising set of results for the financial year, alongside a significant extension to a contract deal.
The IT solutions provider posted a 19 percent increase in revenue to £21.7 million, compared to £11.7 million.
In addition, recurring revenues rose 9 percent to £12.8 million. Software as a service revenues increased 10 percent to £4.4 million.
The company also appointed a new chief operating officer, Ms. MaryBeth Thompson, to help oversee the business.
Moreover, the firm also announced a significant contract extension with respect to its SEND platform.
The deal has been extended by US$400,000 to US$500,000, in a boost to profits.
Phil Reason, CEO of Instem, said: “Instem products and services now address aspects of the entire drug development value chain, from discovery through to market launch, and are currently deployed by over 500 companies, including all of the largest 25 pharmaceutical companies in the world. Management estimate that over 50% of all drugs on the market have been through some part of the Group’s platform at some stage of their development.”
“While new software license revenue was particularly strong in 2017, we also focused on opportunities to increase SaaS revenues and were very pleased to deliver an increase of over 10% during 2017, with both new SaaS customers and existing clients switching from on-premise to SaaS deployment.”
He continued: “The current financial year has started strongly with the largest S outsourced services contract win to date and one of the world’s largest chemical products companies converting to the Company’s market leading SaaS delivery model”
Looking ahead, Mr Reason remained optimistic of future growth prospects, he added:
“The Board therefore looks forward to the coming year and beyond with increasing optimism on the back of an enhanced delivery platform, which promises to deliver significant revenue growth, enhanced profitability and improved quality of earnings.”
Shares in the company are currently trading up 19.89 percent as of 10.10AM (GMT).