Good morning from Paul and Roland!

Explanatory notes -

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Roland’s Section:

Inspiration Healthcare (LON:IHC)

51p (pre-open)

Market cap £35m

FY trading update

This company provides medical technology for critical care, with a focus on neonatal intensive care. Inspiration Healthcare’s own-branded solutions include non-invasive respiratory management and thermoregulation, while its UK distribution business supplies solutions for surgical procedures and infusion therapies.

Graham covered November’s profit warning from this medical equipment manufacturer here. To recap, the company said that problems in China meant that a number of orders would slip back into the following financial year.

Results guidance: Today’s full-year trading update confirms results for the year ended 31 January should be in line with revised expectations from November.

“following the close of the financial year ended 31 January 2023, the Group is expecting to report revenues of approximately £41.2 million representing an increase of 0.4% compared to the prior financial year and in line with market expectations. Adjusted EBITDA* is also expected to be in line with market expectations.”

An updated broker note from Cenkos is available on Research Tree this morning. Cenkos analysts estimate EBITDA of £3.8m for the current year, valuing the business at around 10x EBITDA.

Cenkos forecasts are consistent with the consensus estimate on Stockopedia for adjusted earnings of 0.7p per share…

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