Instem Life Science Systems has floated on AIM, raising £9.15 million.
Pharmaceutical IT specialist Instem Life Science Systems has floated on AIM, raising £9.15 million.
The placing, handled by broker and nominated adviser Brewin Dolphin, puts a value of £20.5 million on the Staffordshire-based company, which helps pharmaceutical and biotech companies around the world increase productivity and automate key processes.
Steered by chief executive officer Phil Reason, Instem says it floated on AIM partly to help growth through mergers and acquisitions. The company has a lumpy recent sales and profits record, reflecting foreign exchange movements and the impact and timing of major contracts from the likes of GlaxoSmithKline and AstraZeneca.
Instem, which derives 60 per cent of its revenue from the USA, saw pre-tax profits plunge from £1.3 million to £148,000 in 2008 on turnover marginally ahead at £8.8 million, only to score a pre-tax surge to £2.5 million last year on £9.8 million sales. The first half of 2010 brought a near 60 per cent increase in pre-tax profits to £159,000 on turnover 350 per cent ahead at £724,000.