StockMarketWire.com - IT solutions provider Instem swung to a loss as impairments offset a rise in costs.

For the year ended 31 December 2019, the company reported a pre-tax loss of £0.9m compared with a profit of £1.7m, while revenue increased 13% to £25.7m.

Recurring revenue, derived from support & maintenance contracts and SaaS subscriptions, increased during the year by 9% to £14.9m.

Profit took a hit from a non-cash impairment provision of £3.2m against goodwill and other intangible assets in the company's Alphadas early phase clinical data collection business.

'We have remained very busy, have good visibility over a strong first half of 2020 performance and continue to have confidence in the longer term outlook for the business, supported by a strong cash balance at the end of April 2020 of £8.3m,' the company said.

The company also said it had won a contract with Biotoxtech, a non-clinical contract research organization in South Korea.

The contract was worth approximately $1m.



At 8:37am: [LON:INS] Instem Plc share price was +55p at 535p



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