Inspiration Healthcare Group (IHC ) said its revenues for the six months to 31 July 2021 are in line with management expectations while operating profit has come in above its expectations.
In line with its progressive dividend policy, the Company confirmed that its interim dividend payment will increase from 0.2p to 0.205p (an increase of 2.5% over the prior financial year).
During the period, total group revenue increased by 47% to £20.9m, gross margin increased from 51.4% to 52.5% while EBITDA also increased by 42% to £3.6m as a result of additional revenues, improved gross margins as well as the continuing impact of Covid-19 on the timing of some cash based overheads which the Group said it now expected to be incurred in 2H.
In particular, the Company’s total revenue from branded products increased 293% over the equivalent period for the previous financial year to £11.5m and accounted for 55% of revenue.
The Company reported adjusted operating profit of £2.6m, an increase of 22% over the prior year. Meanwhile, profit before tax came to £2.5 million, an increase of 133% on last year.
In July 2020, the firm successfully acquired the ventilator maker SLE Ltd. S.L.E. is primarily focused on designing neonatal ventilators for very small children and premature babies.
Commenting on the set of results, CEO, Neil Campbell, told investors: “The integration of SLE Ltd into the Group has been successful and our teams have collaborated closely through the use of technology during unprecedented times to come together in the enlarged Group.”
Cash at 31 July 2021 was £8.6m and a £5m RCF facility put in place during the acquisition of SLE remains undrawn and in place and is available for further utilisation should it be required.
Inspiration Healthcare said integration of SLE Ltd into the Company is now ‘almost complete and, as expected, has delivered significant opportunities for revenue growth globally.’
Following the integration, the Group explained that expanding its global opportunities further remains a key focus and that it will continue to invest in resources to support these projects.
Against the backdrop of a challenging environment as a result of the coronavirus pandemic, Inspiration said it continues to have a strong order book and witness increasing demand.
The Group said its expectations of revenue remains unchanged for the year, albeit with a different product mix in 2H. However, given the strong margin performance with lower than anticipated cash based costs in 1H, its expectations for full year profit have increased.
“We have prioritised enhancing our operational infrastructure, developing our commercial, strategic, R&D and regulatory teams to facilitate our growth ambitions,” said Campbell.
He said the Group is now well positioned to move into 2H and by focusing on the additional benefits it can leverage and drive sales through its “enhanced global distribution network.”
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