Inspiration Healthcare Group (IHC) H1 2025 earnings summary

Executive summary

• Revenue declined 17% year-over-year to £17.0m, mainly due to lower neonatal sales, partially offset by 19% growth in infusion therapies and Airon revenues.

• Gross margin fell to 43.5% (H1 FY24: 48.6%), impacted by sales mix and lower capital sales.

• Adjusted EBITDA loss of £0.9m (H1 FY24: profit of £1.8m); operating loss of £2.0m before non-recurring items.

• Operational restructuring underway, including UK sales team changes, closure of Hailsham site for £0.5m annual savings, and CEO transition.

• A new 'back to basics' strategy is being implemented, focusing on sales, profitability, cost reduction, and US commercial expansion.

Financial highlights

• Revenue: £17.0m (H1 FY24: £20.4m), down 17% year-over-year.

• Neonatal product revenues dropped 26% to £12.0m; infusion product revenues rose 19% to £5.0m.

• Operating cash outflow of £2.3m (H1 FY24: inflow £3.5m); net debt increased to £6.8m (Jan 2024: £6.0m).

• Loss before tax was £3.7m (H1 FY24: £0.1m); loss per share was 5.46p (H1 FY24: 0.08p).

• £3.0m capital raise completed to strengthen the balance sheet.

Outlook and guidance

• H2 revenues expected to be stronger, with large Middle East contract to ship and additional one-off tender opportunities.

• Margin pressure from product mix, delayed Middle East order, and lower ventilator sales likely to persist, impacting full-year earnings.

• Focus remains on driving sales, increasing profitability, and expanding the US and R&D roadmap.