Inspiration Healthcare Group (IHC) H2 2024 earnings summary

Executive summary

• Revenue declined 8.7% to £37.6m for FY2024, with an operating loss of £4.9m versus a £0.4m profit last year, driven by lower sales and significant non-recurring items.

• Adjusted EBITDA fell to £2.0m from £4.0m year-over-year, reflecting lower gross profit and higher administrative expenses.

• Net loss for the year was £6.0m, compared to a £0.3m profit in FY2023; basic LPS was 8.85p (FY2023: EPS 0.40p).

• The company completed the acquisition of Airon Corporation in the US, strengthening its North American strategy and product portfolio.

• A £3.0m fundraising was completed post year-end to reduce net debt and provide liquidity headroom.

Financial highlights

• Group revenue: £37.6m, down 8.7% year-over-year.

• Gross profit: £17.9m, gross margin improved to 47.6% from 43.9%.

• Adjusted operating loss (excl. non-recurring items): £0.4m (FY2023: profit £1.6m).

• Adjusted EBITDA: £2.0m (FY2023: £4.0m).

• Net debt (excl. IFRS 16): £6.0m at year-end, up from £3.8m.

• Cash flow from operations: £1.8m inflow, improved from £3.5m outflow last year.

• No final dividend recommended; total dividend for the year 0.205p per share, with future dividends suspended.

Outlook and guidance

• Trading in FY2025 is in line with management expectations, with revenues expected to be second half weighted.

• The company is focused on growth in North America and expects the Airon acquisition to be earnings accretive in its second full year.

• A large export order signed in July 2024 is expected to be delivered in H2 FY2025, improving liquidity.