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RNS Number : 8719K
Inspiration Healthcare Group PLC
31 August 2023
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Inspiration Healthcare Group plc
("Inspiration Healthcare", the "Company" or the "Group")
Trading Update
Inspiration Healthcare Group plc (AIM: IHC), the global medical
technology company pioneering best-in class, specialist neonatal
intensive care medical devices, provides a trading update for the
six months ended 31 July 2023 .
Revenues for the period were GBP20.4 million, broadly in line
with the GBP20.5 million reported for the same period last year.
Within this, revenues for Neonatal products including service grew
by 4% to GBP16.1 million, driven by sales of the Group's flagship
product, the SLE6000 ventilator. This growth is despite unexpected
delays to regulatory approval for certain new distributed products.
These products were anticipated to replace products withdrawn from
the market that contributed GBP1.0m to revenue in the prior period.
On a like-for-like basis, Neonatal revenues grew by 11% in the
period.
Growth was also hindered by the Infusion products where revenues
declined by 14% to GBP4.3 million as a result of de-stocking by a
leading customer. Infusion revenues, excluding this customer, grew
by 18% as underlying customer demand remained strong.
Gross margin improved in the period and is expected to be over
48%, representing a significant increase on the 44% delivered for
the financial year ended 31 January 2023. This improvement has been
driven by a focus on core growth neonatal products which yield
higher margins.
Net debt (excluding IFRS16 lease liabilities) improved to GBP2.1
million as at 31 July, a GBP1.7 million reduction from the position
at 31 January 2023. This was achieved as a result of strong
operating cash generation of GBP2.9 million for the period.
As we continue to navigate our way through the transition to the
new Medical Device Regulations in Europe, we are seeing some
changes in our product mix, and we are using this opportunity to
focus on the products with higher margins and the best long-term
growth opportunities. Despite challenging market conditions, we
continue to expect to deliver revenue growth for the year as a
whole with gross margins at around the level achieved in the first
half. This is expected to result in EBITDA margins showing a
significant year on year improvement. Operating cash generation is
also forecast to remain strong for the second half.
Neil Campbell, CEO of Inspiration Healthcare, commented :
"Whilst disappointed in first half revenues, we are reporting
margins returning towards our expected levels and improved cash
generation, which have combined to reduce net debt and put the
Group in a stronger financial position. We are focussed on
reshaping the business and are confident in returning to growth in
the second half."
The Group will be announcing interim results for the six months
ended 31 July 2023 on Tuesday, 3 October 2023.
Inspiration Healthcare Group Tel: +44 (0)330 175 0000
plc
Neil Campbell, Chief Executive
Officer
Alan Olby, Chief Financial Officer
Liberum (Nominated Adviser & Tel: +44 (0)20 3100 2000
Broker)
Phil Walker
Richard Lindley
Walbrook PR Ltd (Media and Investor Tel: +44 (0)20 7933 8780 or
Relations) inspirationhealthcare@walbrookpr.com
Anna Dunphy Mob: +44 (0) 7876 741 001
Stephanie Cuthbert Mob: +44 (0) 7796 794 663
Louis Ashe-Jepson Mob: +44 (0) 7747 515 393
About Inspiration Healthcare
Inspiration Healthcare (AIM: IHC) is a global provider of
medical technology for use in neonatal intensive care &
operating theatres. The Company provides high quality innovative
products to patients around the world which help to improve patient
outcomes and it actively invests in innovative product
opportunities and disruptive technologies.
The Company has key own brand products that can be used within
the first days of life to help premature and sick babies; helping
resuscitation and stabilisation in the first moments of life
through to preventing brain damage and both invasive and
non-invasive respiratory support in terms of capital equipment and
disposable medical devices. Additionally, the Company has its own
range of products for maintaining normothermia pre, during and
post-surgery.
Since September 2019, the Company has acquired Vio Holdings a
designer, manufacturer and supplier of single use respiratory
products and sterile medical consumables and S.L.E., a leading
designer, manufacturer and global provider of neonatal ventilation
products. The Group generates approximately 58% of its revenues
from export markets and more than half of its revenues come from
its own-branded products.
With product availability actively promoted to over 80 countries
through a distribution network, Inspiration Healthcare's success
has been built on continuous innovation, excellent customer service
and an inherent commitment to improving patient outcomes, working
in close collaboration with key opinion leaders across the
globe.
In the UK and Ireland, the Group has direct sales teams selling
Group Branded and complementary products from third parties, with
an additional range of home healthcare products. This is supported
by Technical Support for planned preventative maintenance and
emergency assistance.
The Group operates from various sites in the UK for R&D,
Marketing and operations with manufacturing based in Croydon (south
London) and Hailsham (East Sussex). The Group's Head Office is
located in Crawley, a short distance from London's Gatwick
Airport.
Further information on Inspiration Healthcare can be found at
www.inspirationhealthcaregroup.com
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