Instem Share Discussion Threads

[1c3479z] 31/8/2023 13:55

The Times suggests it may be worth more may be up to about £10, quoting brokers, stifel, singers and rothschild given leading market position and possibility of compound profit growth of 20% for the next three years according to one of the brokers: there is some risk for future expansion, as ever....

[p1nkfish] 30/8/2023 14:27

Yes, did well out of CRX and also held their CLNs- collateralized loan notes. Rated their CEO as a good straight talker.

[elrico] 30/8/2023 12:37

PINKFISH,

I remember Cyprotec well. I was feeling rather smug, bagging 100% plus just 48 hours after buying it with some of my ASOS profits that had also more than doubled, shortly thereafter, being stopped out at 130p. I was not feeling so smug thereafter - missing out on the £75. :)

[p1nkfish] 30/8/2023 11:32

Evotec took CRX a while back. Cyprotex as was. Might be more synergy in EVOTEC.

[tradertrev] 30/8/2023 10:42

Carefully judged bid price, but at/below where they were trading 18-24 months ago (and where I took some profit). Shows how the UK small-cap malaise is undervaluing stocks. It usually takes corporate M&A to demonstrate this value on offer. The penny will drop eventually and we should start to see some money flows into small-cap.
I did often wonder how much longer the CEO would want to keep running this show.
As regards competing offers, it's interesting to note that there are very few business synergies with the acquiror, so a decent sized competitor may well be interested in getting involved, as potentially more value on offer in such a tie-up.

[mammyoko] 30/8/2023 08:56

Will the Consortium be happy to see their £41m investment in ToxHub fall into PE hands so quickly?

[mammyoko] 30/8/2023 08:52

Market price suggesting a competing bid may emerge?

[adamb1978] 30/8/2023 08:41

Not an owner but feels far too cheap a price to take them out. Very typical of the London market - boards very happy to sell a company. The PE company acquiring them will do some bolt-ons on flip it on a US market in a few years for a huge profit. The multiple arbitrage will make their target return on its own. Sad times

[p1nkfish] 30/8/2023 07:23

Too cheap but can't see it not going ahead.

[1c3479z] 30/8/2023 07:22

One of uk's few world leading software niche companies, along with DXRX and COG, rather pedestrian growth of late and not completely convinced by all the recent acquisitions, could be worth more than the figure being agreed, one would have thought, good news for RMMC a long-time supporter. Could put the money to work in the other 2 mentioned above, risky or even KOO.

[nhb001] 30/8/2023 07:18

I only bought this in early August so this is a nice surprise. However, I too tend to think this bid undervalues the company.

[w t tutte] 30/8/2023 07:13

Not a shareholder but if I were I would be pretty disappointed that they have not run a formal sale process. This is a quality business that appears to be being sold by management too cheaply and without any external competition.

I am pretty confident there would be a number of interested parties and it would have resulted in a meaningfully higher takeout price. I am going to put these board members on my do not operate in the best interest of shareholders list.

[bigbigdave] 30/8/2023 07:09

Offer 833p, well done anyone still here.

[km18] 15/8/2023 14:46

Instem plc issued a solid trading update for H1 2023 indicating that revenue is expected to be around £29.7m, an increase of approximately 10.2%. The Group's balance sheet remains strong, closing cash at 30 June 2023 was £8.4m. With an increasing number of customer touch points and cross selling opportunities management is confident that Instem's performance will be broadly in line with the Board's expectations for the full year. Consensus expectations are for revenues of £65.5m and statutory net profit of £7.2m, growth of 11% and 53% respectively. Valuation is average with forward PE ratio of 18.8x and PS ratio at 2.4x both mid third for the Software & IT Services sector. The share price is in a longer run consolidation phase and lacks momentum for the time being. INS is a solid growth niche Software name at a decent price, but it is a share to monitor for the time being...

...from WealthOracle

[kumbuka] 18/5/2023 12:54

This self opinionated narcissist has been plugging, ramping stocks for a very long time now and those unfortunate to have followed his research, tips advice has lost a lot of money.

He even charges anyone gullible enough to fall for his scam site.

Don’t be fooled by this CON man.

[elrico] 15/5/2023 22:28

Adjusted EBITDA loss and net cash outflow resulting from its buy-and-build acquisitions have had an impact on 2022. Investors should focus on what INS has built with accretive acquisitions.

[tradertrev] 15/5/2023 09:06

It tells you something about the state of the small-cap market that when a company is given an asset that has cost €41m to date, with a requirement to spend a further £2.5m to commercialise, the shares go down!

[1c3479z] 15/5/2023 07:25

good results,
complex announcement re the in silico platform, looks as though they're getting it free but have to bear the costs of development and maintenance, hope it attracts the businesses expected.

[tradertrev] 28/9/2022 08:20

...as was the InvestorMeetCompany presentation yesterday afternoon.
However, in the current market mood it's a case of "believe it when you see it" so I suspect we have to wait a couple of months before we see significant share price recovery. Happy to hold for that.

[40 fathoms] 28/9/2022 01:04

It was assured, competent and confident about the future growth of markets they operate their position within it.

[40 fathoms] 27/9/2022 08:50

They have reaffirmed full year guidance.

"The Acquisitions are now substantially integrated and we expect to see further benefit to the enlarged Group as we convert our order backlog. We will continue to focus on organic and acquisitive growth opportunities with a view to further leveraging our business model and strong industry standing."

1. The Board understands that consensus market expectation adjusted profit before tax is £7.8m"

[c3479z] 14/4/2022 22:14

results due any day...

[km18] 21/2/2022 17:22

...from last year...

Company overview:
Instem plc is a major supplier of technology and services for the healthcare sector. The company is working with 600 clients providing them with shorter R&D cycles, better management controls, effective resource utilization and increased regulatory compliance. INS prides itself with 98% client retention rate and they strive to be not simply a provider of services but a strategic partner to their clients. The limited number of acquisitions mean the balance sheet is light on intangibles and growth is based on a blended approach.
fundamentally the company is strong. Revenue is growing at 11.6% CAGR and “normalised” EPS on Stockopedia is at CAGR of 28.9%. ROCE for last year was at 8.02% and net gearing is negative. Cash generation is strong driven by continuous increase in CFO. Any issues? Valuation would be the biggest, with rolling P/e in the 30s, which is about the average for the sector. P/S is on the higher end at 7.08 and same could be said also for the EV/EBITDA being in the low 30s.
The interim results are showing good performance. Total revenue is up by 41% to £19.8m, of which recurring is £9.9m. PBT is actually below the H1 2020 at £1.2m, leading to lower EPS as well, due to amortisation of intangibles from acquisitions. The company is enjoying continuous transition to the SaaS model which is increasing the visibility of earnings....

...from WealthOracleAM