Financial Profile

Structure and Strategy

Instem comprises a holding company, Instem LSS Group Limited, with trading entities in Europe and the USA, all of which are incorporated in the UK, the location of our major investors. Day-to-day activities are conducted as a single, seamless entity known as Instem, with the corporate structure deliberately invisible internally and externally.

Our corporate strategy has been founded on establishing a level of market penetration for our solutions that ensures we are consistently profitable and cash generative, enabling us to make the level of ongoing product and service investment that maintains an unquestionable leadership position. Our Provantis PreClinical Safety Data Management application is a perfect example, achieving its strong market position through an exceptional team responsible for:

  • Organic product development
  • Acquisition and consolidation of competitors
  • Excellence in service delivery
  • Maintaining a truly global sales and marketing organization

Some highlights of our current financial position and recent events include:

  • Accelerating Revenue growth, 13% in 2006
  • Strong Net Income growth, 32% in 2006
  • Further market share increase, 7 additional sites in 2006
  • Completion of £4.5m term debt repayments to bank (final £1.6m in December 2006)

Revenue and Net Income

Having spent fifteen years as part of a publicly listed UK company, Instem has very robust governance structures and processes with a team of professional advisors capable of supporting our long term growth.
Continuous organic growth is anticipated in our established niche market through:

  • Market share gains in our established market
  • New solution delivery strategies, such as Hosted Applications and Service Oriented Architectures (SOA)
  • Geographic expansion into emerging markets
  • Continual introduction of new valued added product modules

Our pricing, revenue recognition and policy of expensing our development efforts have resulted in a substantial recurring revenue stream, with low volatility and a strong growth in earnings and cash generation. Our cash generation has enabled us to make significant product investments, fund multiple acquisitions and execute a significant share buy-back program, all which help ensure that we retain strong investor commitment to our strategy. We will continue to explore acquisition opportunities that enhance our market position and introduce complementary solutions to our portfolio by maintaining an agile organization that has the ability to respond to opportunities anywhere in the world through direct investment or external funding.

Reporting Agencies

Although Instem cooperates with various global credit reporting agencies, their scores many times are merely modeled data based on just a few factors. At Instem, to ensure our business can be thoroughly evaluated on a wide array of financial data, we ascribe to a truly open book policy.

Upon request by qualified sources, our Finance Department will supply a complete financial package that accurately reflects our global operations.

To request a copy of our most recent financial statements, send your inquiry to: financerequest@instem-LSS.com