Inspiration Healthcare Group plc (AIM: IHC), the global medical device company, today announces its unaudited interim results for the six months ended 31 July 2019 (“H1 2019/20”).
Financial Highlights:
· Revenue up 9% to £8.1m in line with our expectations (H1 2018/19: £7.4m)
· International revenue was up 18% in the period to £4.8m (H1 2018/19: £4.4m); Domestic revenue grew by 5% to £5.2m
· Improved Gross Margin of 46.8% (H1 2018/19: 45.0%) as a result of increased sales of Inspiration branded products
· EBITDA1 increased by 21% to £0.8m (H1 2018/19: £0.7m)
· Operating profit, excluding one-off acquisition costs, increased by 12% to £0.6m (H1 2018/19: £0.5m)
· Outlook for the full year remains unchanged
Operational Highlights:
· Products developed in the previous 24 months contributed 17% of revenue
· Shipped largest ever order for our AlphaCore5 Patient Warming System
· Received Queen’s Award for Enterprise: International Trade
· Post period end, the Company raised £4.3m via placing to complete the acquisition of Vio Holdings Limited
1 Earnings before interest, tax depreciation, amortisation, share based payments and exceptional items on a basis consistent with prior year which is before applying IFRS 16, Leases (see note 8 for analysis of the impact of IFRS 16 on the interim results)
Neil Campbell, Chief Executive Officer, said today: “The first half started well with a large patient warming system order from Poland. We maintained this momentum in the second quarter to achieve 9% revenue growth for the period. Our exports have continued to flourish with international sales up 18%. Furthermore, we were proud to win the Queen’s Award for Enterprise: International Trade, resulting from the growth track record over the previous years.
We have continued to advance our novel R&D projects including Project Wave and we are making good progress towards filing our application to start clinical trials. Elsewhere, we are working hard on opportunities in our domestic market with our distributed products as well as developing more interest in our products in key export markets as we maintain our progress towards achieving double digit revenue growth.
Since the period end we were pleased to complete the acquisition of Vio Holdings Ltd and their subsidiary Viomedex Ltd, a long-time partner of Inspiration Healthcare. We are excited by the opportunity to develop sales of Viomedex’s products through our distribution network as well as adding Viomedex’s recently launched products to our portfolio. The enlarged group will also benefit from the added manufacturing capability, which will help increase gross margins of the Group.
“We had a strong take up for our first fundraise, in September, allowing us to strengthen our balance sheet to take advantage of new opportunities and further invest in our business to drive revenue growth in future years.”
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