Inspiration Healthcare Group plc has reported positive annual results following recent travails.
The Crawley-based medical technology group, maker of neonatal intensive care medical devices, appointed Raffi Stepanian (pictured) as CEO in January.
In May 2024 founder Neil Campbell stepped down as CEO following nine years at the helm and subsequently left the company after more than 20 years of service. The development followed a dramatic fall in share price from around 31 pence to 16p.
This recovered, but it has since dropped below even that level at less than 14p at the time of writing today (8am).
Ahead of trading this morning, Inspiration will be hoping for a rebound after it reported its full-year trading update for the year ended 31st January 2025.
Revenues for the year were £38.3m (FY24 £37.6m) following a strong second half across the group.
EBITDA is expected to be positive (FY24: £2m), with H2 gross margin benefiting from an improved sales mix of higher margin neonatal products, and the initial effects of cost savings, Inspiration said.
A cost reduction programme was implemented during the second half of last year, delivering annualised savings of £1.25m.
It added that no revenue was recognised from its $4.3m Middle Eastern SLE6000 ventilator contract during the FY25 period, despite the first part of this order having been shipped prior to the year end as this initial shipment was held awaiting customs clearance.
The revenue from this initial shipment of circa $2m is expected to be recognised in early FY26 on receipt of the goods by the customer, with the second and final shipment expected to be made in FY26, following receipt of the final letter of credit.
Despite this, sales for the fourth quarter were strong, Inspiration said, with January delivering the highest sales of the period. Its management expects this momentum to continue into FY26.
“I am pleased to report a strong second half performance despite not being able to recognise the partial Middle Eastern contract shipment made in the period. While revenues were therefore slightly behind market expectations we have delivered a positive EBITDA for the full year,” said Roy Davis, non-executive chair of Inspiration Healthcare.
“While frustrated with the delays to the Middle Eastern contract, this has been outside of our control and having secured the first shipment it is now expected to be fully executed in FY26.
“We are also delighted to have secured in H2 our largest single contract to date for $6m with an international trusted Non-Governmental humanitarian aid organisation, for delivery in the first half of FY26. Combined, these contracts provide a strong platform to the first half of FY26.
“Overall, we have had a very busy year implementing our ‘Back to Basics’ strategy, delivering savings through restructuring and recently welcomed a new CEO.
“Our goal is to build on the momentum from the second half of last year to deliver sustained growth in revenue, profit and cash generation.”
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