Instem has once again delivered a strong set of interim results in our view, with the growth story the key highlight. The group has made three major acquisitions during 2021 (including PDS which was completed in the second half) which have transformed the organisation and are integrating well. In addition, the existing business delivered double-digit organic growth during the first half. Improved earnings quality from the ongoing transition to SaaS delivery is a further highlight of the release.
Companies: Instem plc
A record H1 combined strong organic growth with the first part-period contributions from the acquisitions made earlier in the year. Revenues increased by a material 41%, reflecting the step change in the scale of the group. Trading for the year is reported to be slightly ahead, albeit a technical accounting adjustment will impact on reported FY21 results (est. £1.0m impact, offset by £0.2m improvement in operational efficiency). Importantly, our Y/E cash assumptions actually increase and our FY2
Instem has made its third acquisition of 2021, buying a longstanding competitor in the Study Management and Regulatory Solutions space. It is paying an EV of £11.4m in a mixture of cash and shares to acquire PDS Life Sciences, a Swiss-based supplier of software and outsourced services to the life sciences industry. The deal extends Instem’s market leadership in the preclinical space, adding further domain expertise and offering scope for revenue synergies in time. We estimate the acquisition wil
Instem has announced the (earnings enhancing) acquisition of PDS Pathology Data Systems Ltd (“PDS”) a Swiss-based life sciences software company. The total consideration is up to CHF 14.25m (c£11.4m), subject to adjustments, to be satisfied by a combination of cash and the issue of new Instem shares. We believe the deal is strategically compelling; in addition to removing a key competitor from the marketplace, the acquisition will further strengthen the Instem group’s positioning and market shar
A strong H1 update from Instem, with revenues increasing ~45% YoY, aided by the two acquisitions completed in the period and strong double-digit organic growth. The outlook remains positive, underpinned by buoyant market conditions and a strong pipeline of new opportunities. At its recent CMD, it was apparent how much bigger the TAM is that is now available to the enlarged group – an estimated ~£500m pa. Despite being market leader in many of the niches it serves, Instem’s overall market share i
Instem’s update for the six months to 30 June 2021 (H1 21E) confirms that trading was in line with the Board’s expectations during the period and that the group continues to perform well across all areas of the business. Financial performance is benefitting from favourable market conditions, and the ongoing move to SaaS delivery. The group reported double-digit organic revenue growth on a constant currency basis and strong operational cash generation. Management commentary on the outlook is posi
Instem delivered a solid in line performance in FY20 and entered FY21 with a strong orderbook and backlog. The acquisitions announced last month have added materially to the scale and capabilities of the group and we believe the growth prospects and strategic value of the enlarged group have been enhanced significantly. Our forecasts are unchanged, save for introducing FY23 estimates. We look for a 3yr EPS CAGR of 22% and see potential upside on revenue synergies and further M&A. The valuation c
Instem has reported FY 20A results consistent with its Jan-21 trading statement and in line with our forecasts. Despite the backdrop of COVID-19, the group once again delivered double-digit revenue growth for the year, alongside margin improvement and cash generation. Furthermore, revenue visibility remains high and all three business areas continue to deliver. In our view, the two acquisitions made during the first half of 2021 have transformed the group. So, while the FY 20A results demonstrat
In its second acquisition inside a month, Instem has announced the acquisition of d-wise, a market leading supplier of clinical trial analysis solutions, for up to $31m. This is a strategic acquisition for Instem, adding immediate scale and complementary products and techenabled services in the later stage clinical trials space, completing its presence across the research continuum. This enhances Instem’s strategic position in the market and adds revenue synergies to an already strong organic gr
Instem has announced that it has exchanged contracts to acquire d-Wise Technologies Inc (“d-wise”) a US-based clinical trial technology and consulting solutions provider. The total consideration is up to $31m, subject to adjustments, to be satisfied by a combination of cash and the issue of new ordinary Instem shares (with a deferred element). We believe the deal is transformational for Instem, significantly increasing the group’s scale and reach, and extending the offering more into the clinica
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Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Companies: Gaming Realms PLC
Tern plc* (TERN.L, 14.35p/£50.5m) Portfolio update: Strategic investment for Device Authority from global player (02.12.21) | Mirada plc* (MIRA.L, 74p/£6.6m) Interims: Return to growth; expansion of sales pipeline (02.12.21) | Blackbird plc* (BIRD.L, 28.75p/£96.9m) Update: Additional US TV stations secured (03.12.21) | Mobile Tornado plc* (MBT.L, 1.875p/£7.1m) Update: Notice from customer (01.12.21)
Companies: TERN MIRA BIRD MBT
TPXimpact has released a very strong set of interims that were well ahead of our forecasts, and which firmly underpin our FY estimates. Revenues leapt +77% to £37.5m (DCe £33.9m) with organic growth of +21% fortified by acquisitions. Gross margin was down -4pts to 31% though this reflected a change in business mix and a temporary increase in use of contractors rather than wage inflation and the group expects to rebuild gross margin going forwards aided by the centralised recruitment benefits fro
Companies: TPXimpact Holdings PLC
Following inline H1 results, we view this morning's update on the Major Programme which has been in PEN's sights for a lengthy period as welcome in bringing greater clarity to this long-running situation. While this morning's update, though disappointing in confirming that PEN's opportunity within the overall Major Programme is less substantial than at one time seemed possible, is nonetheless positive in our view in (1) allowing the company to move its software-led strategy forward more aggressi
Companies: Pennant International Group plc
This has been a notable half for D4t4; its markets continue to recover from the pandemic, leading to a fine trading performance marked by a raft of new contract wins; management has been refreshed, with an experienced and dynamic new team taking the helm; the geographic expansion into the US and APAC continues; a stream of software updates will maintain Celebrus market leadership; a small consultancy acquisition hints at a more direct market approach in future; and the launch of the exciting fra
Companies: D4t4 Solutions plc
An in line H1 coupled with continued UK recovery since period end, improving activity levels in SecPay, increasing global opportunity and cost savings going forward give Eckoh “significant confidence” in achieving guided flat revenues and profits growth in FYMar22. Guidance for double digit revenues and profits remains for FY23 (no changes to our forecasts). While H1 continued to suffer from CV19-related drag it is encouraging that the UK business was back at pre-pandemic levels by September. In
Companies: Eckoh plc
First Property announced interim results that underline the opportunity to grow rental income and capital values over the next 12 months. With cash to invest on behalf of both the Group and its fund management clients, there is scope for earnings growth. With capital values generally rising after the lockdown induced lows, we expect NAV expansion
Companies: First Property Group plc
GENinCode's trading update details the progress the company has made since its IPO in July and lays out the key milestones investors should be watching for through 2022. Notably regulatory and commercial discussions are on-going in the US with the FDA and partner Eversana, respectively. In the UK commercial testing with Lipid inCode is expected to begin in the coming months which will be supported by an NHS research paper. Importantly, EU revenues (largely in Spain) have ‘increased in line with
Companies: GENinCode UK Ltd.
Arcontech has announced that its trading performance is below current market expectations due to one customer reducing its market data spend with the company, and notification from another customer that it will not be renewing its contract from the start of H2 22. The two changes are unrelated and do not involve customers with Arcontech’s core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing
Companies: Arcontech Group PLC
GB Group (GBG) reported a strong performance in H122, with organic constant currency revenue growth of 12.6% y-o-y and an adjusted operating margin of 25.5%. The Acuant acquisition completed on 29 November and the group’s immediate focus is on combining the two companies and pushing forward with growth plans. Our forecasts are substantially unchanged.
Companies: GB Group PLC
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Companies: Mode Global Holdings Plc
Microlise is the market leading provider of enterprise software solutions to UK Logistics and Haulage operators, offering a range of functionality unsurpassed by the competition. The company operates a highly visible SaaS model that benefits from long term contracts and excellent customer retention. Microlise has grown recurring revenues and been profitable every year since 2008. Product investment is focused on adding new functionality to drive further UK market share gains and international gr
Companies: Microlise Group Holdings Ltd.
CloudCoCo Group plc* (CLCO.L, 1.95p/£13.8m) Acquisitions: Transformational acquisitions fit 'get bigger' strategy (20.10.21) | Blackbird plc* (BIRD.L, 32.5p/£109.6m) Product launch: 'Powered by Blackbird' licensing solution (21.10.21) | Starcom plc* (STAR.L, 1.225p/£4.7m) Update: Signs of revival and additional funding (22.10.21)
Companies: CLCO BIRD TRAC