Strong trading, successful fundraise
Instem’s H1 20E trading update confirms that trading was in line with the Board’s expectations during the period. The group also reported double-digit organic revenue growth and strong operational cash generation for the period. Instem has also now received shareholder approval for the (oversubscribed) placing of 3.6m new ordinary shares at a price of 435p, raising approximately £15.0m net of expenses. Additionally, three members of the Board have sold 0.7m shares at the same price. The placing and the team’s sales represent 17.7% and 0.9% respectively of the Group’s enlarged share capital, which will significantly increase the free float of the group’s shares. The proceeds from the primary placing will be used to advance existing acquisition targets in line with the group’s stated M&A strategy.