REG - Inspiration Health - Trading update for the six months to 31 July 2024

Inspiration HealthcareAnnouncement

03/09/2024 07:00

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RNS Number : 6090C  Inspiration Healthcare Group PLC  03 September 2024

 

 

3 September 2024

Inspiration Healthcare Group plc

("Inspiration Healthcare", the "Company" or the "Group")

 

Trading update for the six months ended 31 July 2024

Notice of interim results

 

Inspiration Healthcare Group plc (AIM: IHC), the global medical technology
company pioneering specialist neonatal intensive care medical devices, is
pleased to provide a trading update for the six months ended 31 July 2024.

 

Revenues for the period were £17.0 million, in-line with management
expectations. Revenues for our Neonatal products were £12.0 million, which
includes sales from Airon Corporation, the Company's US business acquired in
January 2024, which is showing promising growth. As expected, the impact of
end of life products and a slower than expected switch to our flagship SLE6000
ventilator has impacted our core neonatal product sales in the period. As
previously announced, revenues for the year will be H2 weighted and are
expected to include the $4.3 million SLE6000 ventilator contract announced on
25 July 2024.

 

Revenues for the Infusion Therapies products grew by 16% to £5.0 million
versus H1 FY24, following on from a strong second half last year. The Company
continues to see strong demand from customers across the UK and expects to see
growth maintained through the second half year, aided by the recent launch of
the new pump from partner Micrel, which enables healthcare teams and care
givers to monitor patients remotely.

 

Gross margin is expected to reduce to approximately 44.5% in the period as a
result of the sales mix with increased sales of lower margin products.

 

At 31 July 2024, the Group's net debt (excluding IFRS16 lease liabilities) was
£6.7 million, which includes proceeds of the oversubscribed £3.0 million
fundraise completed in July 2024. This is ahead of management expectations due
to reduced working capital outflows and capital expenditure.

 

Commenting, Roy Davis, Executive Chair and Interim CEO of Inspiration
Healthcare said: "Despite the challenges faced we have made progress during
the period, securing our largest single order for our SLE6000 ventilators and
completing a £3.0m fundraise to strengthen the balance sheet. As we look to
rebuild our position, we are concentrating on revenue growth, increasing
profits and improving working capital.  Operationally our Infusion and Airon
businesses are performing well and, in our core, Neonatal business we are
focussed on driving sales.  As part of our strategy, we are also implementing
plans to increase recurring revenue from service and consumables and
streamline operations to improve efficiency. With our portfolio of life-saving
neonatal technologies and infusion products addressing critical healthcare
needs, we are well positioned to return to growth during the second half of
the year and start to deliver long-term sustainable performance."

 

Notice of interim results

The Group will be announcing interim results for the six months ended 31 July
2024 on Wednesday 2 October 2024.

 

The Company will provide a live presentation to investors via the Investor
Meet Company platform on Monday, 7 October 2024 at 11am BST. The presentation
will give an update on the Company and an overview of the Group's interim
results for the six months ended 31 July 2024.

 

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via the Investor Meet Company dashboard up until
9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to
meet Inspiration Healthcare.

 

To register for the presentation, please use this link
(https://www.investormeetcompany.com/inspiration-healthcare-group-plc/register-investor)
.

 

Investors who already follow Inspiration Healthcare on the Investor Meet
Company platform will automatically be invited.

 

For further information, please contact:

 

 Inspiration Healthcare Group plc                                                                                            Tel: +44 (0)330
                                                                                             175 0000
 Roy Davis, Executive Chair and Interim Chief Executive Officer

 Alan Olby, Chief Financial Officer

 Panmure Liberum Limited (Nominated Adviser & Broker)                                                                        Tel: +44 (0)20
                                                                                             3100 2000
 Richard Lindley

 Will King

 Joshua Borlant

 Walbrook PR Ltd (Media & IR)      Tel: +44 (0)20 7933 8780 or 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) designs, manufactures and markets pioneering
medical technology. Based in the UK, the Company specialises in neonatal
intensive care medical devices, which are addressing a critical need to help
to save the lives and improve the outcomes of patients, starting with the very
first breaths of life.

 

The Company has a broad portfolio of its own products and complementary
distributed products, for use in neonatal intensive care designed to support
even the most premature babies throughout their hospital stay. Its own branded
products range from highly sophisticated capital equipment such as ventilators
for life support through to single-use disposables.

 

The Company sells its products directly to hospitals and healthcare providers
in the UK and Ireland, where it also distributes a range of advanced medical
technologies for infusion therapy.  In the rest of the world the Company has
an established network of distribution partners around the world giving access
to more than 75 countries.

 

The Company operates in the UK from its world-class Manufacturing and
Technology Centre in Croydon, South London and from its facility in Hailsham,
East Sussex, and in the USA from its facility in Melbourne, Florida.

 

Further information on Inspiration Healthcare can be found at
www.inspirationhealthcaregroup.com (http://www.inspirationhealthcaregroup.com)

 

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