REG - Inspiration Health - Half-year Report
Tue 07:00
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RNS Number : 2702C Inspiration Healthcare Group PLC 07 October 2025
7 October 2025
Inspiration Healthcare Group plc
("Inspiration Healthcare", the "Company" or the "Group")
Interim Results
Strong H1 FY26 sets foundation for sustained profitable growth
Inspiration Healthcare Group plc (AIM: IHC), the global medical technology
company, announces its unaudited interim results for the six months ended 31
July 2025 (H1: FY26).
Financial highlights
· Group revenue up 41% to £24.0 million, (H1 FY25: £17.0 million)
o Growth driven by neonatal product sales, Middle East contract and UNICEF
contract delivery
· Gross profit of £11.1 million (H1 FY25: £7.4 million)
· Gross margin improvement to 46.2% (H1 FY25: 43.5%), due to higher
capital sales and neonatal product mix
· Adjusted EBITDA(1) profit of £1.3 million (H1 FY25: loss of £0.9
million) reflecting the solid operating performance
· Operating profit of £0.2 million (H1 FY25: loss of £3.2 million)
· Cash generated from operating activities of £3.6 million (H1 FY25:
cash outflow of £2.3 million)
o Strong performance due to EBITDA profit, reduction in working capital
(especially inventories) and receipt of R&D tax credits of £0.7 million
· Net debt (excluding IFRS16 lease liabilities) reduction to £6.7
million (31 January 2025: £8.3 million)
(1)Earnings before interest, tax, depreciation, amortisation, share based
payments and non-recurring items
Operational highlights (including post period)
· Executed two biggest export contracts in Group history, contributing
significantly to H1 revenue
· Strengthened sales pipeline management to drive H2 revenue growth
despite NHS procurement delays
· 'Back to basics' strategy continues resulting in improved margins,
lower working capital, reduced net debt and sustainable growth
· Advancing US market entry for SLE6000 ventilator, completing testing
for FDA submission in H2 2026 and preparing for H1 2027 launch
· Operational improvements driving underlying growth in neonatal
products, independent of one-off export orders, coupled with strategic market
initiatives are establishing foundations for profitable growth in FY26 and
beyond
Analyst briefing
Raffi Stepanian CEO, and Alan Olby CFO, will host a briefing to equity
research analysts today at 09.30am BST. To register and for more details
please contact Walbrook PR on inspirationhealthcare@walbrookpr.com.
Investor presentation
Management will also provide a live presentation relating to the results via
the Investor Meet Company platform today at 11.00am BST.
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 do
so here
(https://www.investormeetcompany.com/inspiration-healthcare-group-plc/register-investor)
.
Raffi Stepanian, CEO of Inspiration Healthcare Group plc commented: "H1 FY26
has been a pivotal period for our Group. Delivering our largest export
contracts ever, while simultaneously driving underlying growth across our
neonatal portfolio, demonstrates the tangible benefits of the 'back to basics'
approach we implemented last year. Operationally, we have resolved key supply
chain challenges, strengthened our international distribution and streamlined
product lifecycles. Together all these factors are enhancing margins, reducing
working capital and positioning us for sustainable growth.
"Looking ahead, our focus remains on executing against our robust order
pipeline, expanding our presence in the US and Asia-Pacific markets, and
delivering life-saving solutions to the most vulnerable of patients. I am
confident that these actions lay the foundations for continued profitable
growth in our underlying business in H2 and beyond."
Enquiries:
Inspiration Healthcare Group plc Tel: +44 (0)330
175 0000
Raffi Stepanian, Chief Executive Officer
Alan Olby, Chief Financial Officer
Panmure Liberum (Nominated Adviser & Broker) Tel: +44 (0)20
3100 2000
Will Goode
Emma Earl
Mark Rogers
Walbrook PR Ltd (Media & IR) Tel: +44 (0)20 7933 8780 or inspirationhealthcare@walbrookpr.com
Anna Dunphy Mob: +44 (0) 7876 741 001
Rachel Broad 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 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/)
Chief Executive Officer's Statement
I am pleased to report that the Group has delivered a strong first half
performance with the benefit of two significant export contracts, being the
Middle East contract and UNICEF, which are the largest orders we have ever
received. More encouragingly, on an underlying basis excluding these two
material export orders the benefits of the 'back to basics' approach adopted
last year are starting to show through with a return to growth in neonatal
product sales in our direct market in the UK/Ireland and through our
international distributors. This is also leading to improving margins,
reducing working capital and net debt.
Revenues for the period were £24.0 million, a 41% increase compared with the
same period last year and ahead of expectations. This included a very strong
performance in the neonatal product portfolio, boosted by the two material
export contracts which was offset by an 8% decline in Infusion Therapy
products and a 6% decline in Speciality ventilation.
6 months ended 31 July 2025 6 months ended
31 July 2024
TOTAL Change Underlying Change TOTAL
£'000 % £'000 % £'000
Neonatal products 18,215 +69% 11,686 +8% 10,785
Infusion Therapy products 4,635 -8% 4,635 -8% 5,039
Speciality ventilation products 1,138 -6% 1,138 -6% 1,215
Total 23,988 +41% 17,459 +2% 17,039
Neonatal products:
Capital 12,191 +115% 6,794 +20% 5,659
Consumables 6,024 +18% 4,881 -5% 5,126
18,215 +69% 11,674 +8% 10,785
Neonatal products by Geography:
UK/Ireland 4,408 +2% 4,408 +2% 4,310
International 13,807 +113% 7,266 +12% 6,475
18,215 +69% 11,674 +8% 10,785
Neonatal Key Brands:
SLE6000 8,470 +131% 5,918 +61% 3,672
End of life products 637 -61% 637 -61% 1,634
Other 9,108 +66% 5,119 -7% 5,479
18,215 +69% 11,674 +8% 10,785
Underlying revenues defined as revenue for the period excluding revenues from
material one-off export orders from Middle East customer and UNICEF
Neonatal
Neonatal products performed strongly in the first half with revenue growth of
69% to £18.2 million on a reported basis and 8% to £11.7 million on an
underlying basis excluding the two large export contracts. Capital sales
performed strongly driven by the large export orders but also showed growth of
20% to £6.8 million on an underlying basis. Consumable sales also grew by 18%
to £6.0 million but fell by 5% on an underlying basis due to supply chain
delays which have now largely been resolved.
Sales from neonatal products in the UK/Ireland grew by 2% to £4.4 million,
held back by the supply chain issues on consumables mentioned above. We have a
growing pipeline of opportunities for delivery in H2, which are expected to
deliver full year sales ahead of the prior year.
International sales were £13.8 million, growth of 113% over H1 FY25, boosted
by the two material export orders delivered in the period. Excluding these
one-off orders, underlying international sales still showed growth of 12% to
£7.3 million demonstrating the benefits of increased customer engagement
following the adoption of the 'back to basics' approach. We appointed a new
distributor manager based in Singapore in the period in order to be closer to
our customers in the Asia Pacific region and the benefits of this appointment
are already being seen. Increasing international sales activity remains a key
focus for the commercial team who are working to proactively manage our
distributors to increase demand, and this is leading to a growing pipeline of
future sales opportunities driving confidence in our outlook for H2 and into
next year. This is specifically important in Europe, where we are aiming to
win our fair share of the market.
Revenues from end-of-life products (including SLE5000 and SLE1000) were £0.6
million in the period (H1 FY25: £1.6 million) a 61% decrease which
constrained revenue growth. Encouragingly, and as expected, sales of the
SLE6000 grew by 61% to £5.9 million on an underlying basis compensating for
the decline in revenues from end-of-life products and bringing the neonatal
product portfolio back to underlying growth.
The first shipment of the delayed Middle East order was delivered to the
customer during H1 and payment received. We are awaiting issue of the letter
of credit for the second and final shipment and this is expected to be
delivered in H2. We also delivered the $6 million order with UNICEF for
SLE6000 and SLE1500 ventilators and accessories in full in the period.
Together these one-off orders contributed £6.5 million to revenues in the
first half.
Infusion Therapies
Sales of the Infusion Therapies products declined by 8% to £4.6 million in
the first half following a very strong second half last year. This was due to
destocking by a major customer in the homecare segment. Last year's launch of
the new range of pumps from our partner Micrel has been well received and
presents an opportunity to grow revenues both in homecare but more importantly
in hospital settings, where several trials are ongoing in the pain management
and oncology areas, although progress has been slower than anticipated due to
NHS budget pressures and long purchasing cycles. Our revenue pipeline for the
Infusion products provides confidence that we will see a stronger sales
performance in H2 although below the levels seen in H2 FY25.
Airon & North America strategy
Speciality ventilation product sales which consist of the Airon products
declined by 6% in the first half compared to the prior year to £1.1 million.
This was largely as expected given the very strong comparative period when
Airon's national distributor, USME, was building its rental fleet. We are
exploring additional sales channels for the Airon products and believe that
there is an untapped opportunity in the emergency care market where the
transport capabilities of the Airon products truly come into their own. There
are also opportunities for the Airon products from the Group's international
distribution partners, and we expect both of these to translate into further
revenue growth for Airon in the future.
We continue to prioritise and focus on the project to develop a version of the
SLE6000 ventilator for the US market which we expect to submit to the FDA
later in 2026 following completion of extensive external testing covering
areas such as biocompatibility, human factors and cyber security. This is
expected to lead to product clearance and launch in H1 2027.
Outlook
After the successful course correction in the second half of FY25, the first
half of FY26 has positioned us strongly to continue our growth trajectory with
momentum, while implementing the back-to-basics actions in the various
organisational, structural and procedural aspects of the Group. Beyond the two
major contracts, the growth in the underlying business highlights both the
opportunity and the tremendous potential of the markets we serve. Looking
ahead to the second half of FY26, we have a strong order backlog and pipeline
which underlines our confidence in meeting market expectations for the full
year. Profitability has also improved with the increase of sales of our own
capital equipment within the overall product mix.
Besides working on getting the basics right in all the functions of the Group,
we continue to work towards increasing our market share of devices in more
stable markets, the launch of our own consumables, as well as preparing the US
market entry for our Neonatal ventilator - all geared towards increasing
sales, profitability and improving working capital.
The strong H1 FY26 performance represents a key milestone, propelling us into
a phase of sustained, profitable growth and moving decisively beyond the
challenges of previous years. While one-off contracts have made a significant
contribution to H1 FY26, I am confident we are setting the foundations for
continuing the growth in the underlying business in H2 and beyond. We have
strong, trusted brands in the market, with a solid portfolio of life-saving
neonatal technologies and infusion products improving the quality of life for
thousands of patients, in stable and consistently growing market segments.
Going forward, we will reinforce the focus on:
- the SLE brand globally, as a leader in neonatal respiratory care.
SLE is a well-known brand name with a loyal customer base, and we will ensure
they get the support and product features they expect, growing our market
share in existing and new geographies
- the Inspiration Healthcare brand in the UK, as a premium
distribution partner for the NHS for neonatal and infusion therapy solutions
- the Airon brand as provider of unique pneumatic ventilators for
emergency care and MRI, in US and globally
With clear positioning and goals for each brand, we will accelerate the growth
of the overall Group, through maximising the opportunities for each of the
three brands.
This will be driven by relentless focus on customer needs, who care for the
most fragile patients, starting with the first breaths of life.
Raffi Stepanian
Chief Executive Officer
Financial Review
Revenue
Revenue for the six months to 31 July 2025 was £24.0 million (H1 FY25: £17.0
million) an increase of 41% and driven by strong sales of our neonatal
products, helped by the impact of the first delivery of the Middle Eastern
contract and the UNICEF contract which was fully delivered in the period.
Gross profit
Gross profit was £11.1 million, a 50% increase from the £7.4 million in H1
FY25. This equated to an improved gross margin of 46.2% (H1 FY25: 43.5%).
The margin increase resulted from the higher level of capital sales and the
improved level of neonatal product sales compared to the distributed infusion
products which represented 19% of revenues for the first half compared with
30% in the prior period.
Operating profit
As a result of the strong revenue performance and improved gross margin, the
Group has returned to operating profitability in the first half with an
operating profit of £0.2 million (H1 FY25: loss of £3.2 million).
Operating expenses excluding non-recurring items, totalled £10.9 million in
the period (H1 FY25: £9.4 million) an increase of 16%. These include one-off
commission payments of £1.2 million paid to local agents supporting the
delivery, installation and training for the large export orders in the Middle
East and with UNICEF. The Group also recorded foreign exchange losses of £0.5
million in the first half (H1 FY25: £nil) mainly because of Sterling
strengthening versus US Dollar. Excluding these items, operating expenses were
£9.2 million, 2% less than in the prior period.
Adjusted EBITDA(1) was £1.3 million in the first half reflecting the strong
operating performance (H1 FY25: loss of £0.9 million). A reconciliation of
operating profit to Adjusted EBITDA is set out below:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 July 31 July 31 January
2025 2024 2025
£'000 £'000 £'000
Operating profit/(loss) 216 (3,175) (14,686)
Non-recurring items 17 1,203 12,802
Adjusted operating profit/(loss) 233 (1,972) (1,884)
Depreciation 645 564 1,315
Amortisation 337 434 894
Share based payments 49 61 (115)
Adjusted EBITDA profit/(loss) 1,264 (913) 210
(1)Earnings before interest, tax, depreciation, amortisation, share based
payments and non-recurring items
Underlying performance
Sales in the business in any period can be unduly impacted by the lumpy nature
of large international tenders and therefore due to their unpredictability
from a timing perspective make year to year comparisons difficult. We
therefore believe reporting the underlying numbers will help better reflect
the performance of the business. The two large export orders for the Middle
East customer and UNICEF have had a significant impact on the reported result
for the period. On an underlying basis excluding these two deals the results
also show improvement in revenue, gross margin and adjusted EBITDA
demonstrating the impact of the back-to-basics approach.
Unaudited
6 months
Unaudited ended
6 months ended 31 July 2025 31 July
TOTAL One-off Exports Underlying 2024
£'000 £'000 £'000 £'000
Revenue 23,988 6,529 17,459 17,039
Gross profit 11,091 3,197 7,894 7,405
Gross margin 46.2% 49.0% 45.2% 43.5%
Overheads (9,827) (2,184) (7,643) (8,318)
Adjusted EBITDA profit/(loss) 1,264 1,013 251 (913)
Underlying gross margin improved to 45.2% from 43.5% in the prior year as a
result of an improving sales mix favouring our own products and within that,
growth in capital sales. Underlying overheads have been reduced by 8% in the
first half compared to H1 FY25 following the cost saving measures implemented
and this combined with the margin improvement has led to a return to
underlying adjusted EBITDA profit of £0.2 million (H1 FY25: £0.9 million
loss).
Finance expense
Finance costs for the period were reduced by 5% compared with the prior period
at £0.5 million as the reduction in net debt starts to bring down financing
costs. These are expected to fall further in H2 as the average level of net
debt continues to decline.
Loss before tax
Loss before tax is reduced to £0.3 million (H1 FY25: £3.7 million) following
the return to operating profit in the period, and loss per share falls to
0.29p (H1 FY25: 5.46p).
Balance sheet and net assets
Intangible assets increased by £0.7 million, net of amortisation, as we
capitalised R&D expenses of £1.0 million in the first half, the majority
of these costs being associated with the preparation of the US variant of the
SLE 6000 for the US market.
Inventories continued to reduce, declining by £2.1 million in the first half
to £11.0 million as the steps taken to improve inventory management in the
prior year continued to have an impact, and accelerated by the impact of the
large capital sales made in the period. We expect to see further inventory
reduction in the second half and into next year as we continue the process of
normalising inventory levels.
Trade and other receivables were reduced by £2.4 million in the period to
£9.0 million as revenues were more evenly spread throughout the half and
receivables from last year were settled. Other receivables were reduced
through the receipt of R&D tax credits of £0.7 million. Trade and other
payables also fell by £1.7 million to £6.5 million, this included settlement
of the contingent consideration for the acquisition of Airon Corporation
following the end of the earn out period in April 2025. With revenue targets
comfortably exceeded for the target period, the full contingent consideration
of $1.0 million was paid in the period.
Overall net assets declined by £0.2 million in the period, standing at £16.4
million at 31 July.
Cash flow and net debt
Cash generated from operations was £3.6 million in the first half, a
significant turn round from the cash outflow of £2.3 million in the same
period last year. This resulted from the EBITDA profit, reduction in working
capital (especially inventories) and receipt of R&D tax credits of £0.7
million.
As a result of the strong cash generation in the period, net debt (excluding
IFRS16 lease liabilities) fell to £6.7 million at 31 July from £8.3 million
at 31 January and is expected to continue to fall in the second half.
The Group repaid £0.7 million of the Revolving Credit Facility ('RCF') in the
first half and reduced drawings from the invoice discounting facility by £1.1
million. At 31 July £6.3 million of the RCF and £1.0 million of the invoice
discounting facility were being utilised. As a result of the reduction in net
debt and improved EBITDA generation, the cap on drawings from the RCF has now
been lifted by the Group's lender meaning that the Group has access to the
full £10.0 million under the RCF, providing that leverage is forecast to
remain below 3.0x. The Group has no current intention to make further use of
the RCF facility and has repaid a further £1.2 million since the end of the
period.
Alan Olby
Chief Financial Officer
Unaudited Consolidated Income Statement
For the six months ended 31 July 2025
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 July 31 July 31 January
2025 2024 2025
Notes £'000 £'000 £'000
Revenue 23,988 17,039 38,251
Cost of sales (12,897) (9,634) (21,873)
Gross profit 11,091 7,405 16,378
Operating expenses (10,858) (9,377) (18,262)
Operating profit/(loss) (before non-recurring costs) 233 (1,972) (1,884)
Non-recurring costs 4 (17) (1,203) (12,802)
Operating profit/(loss) (after non-recurring costs) 216 (3,175) (14,686)
Finance income 3 24 34
Finance expense (503) (552) (1,096)
Loss before tax (284) (3,703) (15,748)
Income tax 22 (82) 781
Loss attributable to the owners of the parent company (262) (3,785) (14,967)
Loss per share, attributable to owners of the parent company
Basic (pence per share) 5 (0.29p) (5.46p) (18.82p)
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 31 July 2025
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 July 31 July 31 January
2025 2024 2025
£'000 £'000 £'000
Loss for the period/year (262) (3,785) (14,967)
Other comprehensive expense
Currency translation differences (53) (5) 24
Total other comprehensive expense (53) (5) 24
Total comprehensive loss for the period/year attributable to the owners of the (315) (3,790) (14,943)
parent
Unaudited Consolidated Statement of Financial Position
As at 31 July 2025
Unaudited Unaudited Audited
As at As at As at
31 July 31 July 31 January
2025 2024 2025
Notes £'000 £'000 £'000
Assets
Non-current assets
Intangible 6,074 13,223 5,333
assets
Property, plant and equipment 5,534 6,906 5,889
Right of use 4,511 5,393 4,709
assets
16,119 25,522 15,931
Current assets
Inventories 6 11,009 14,118 13,083
Trade and other receivables 7 8,961 9,623 11,336
Short-term investments - 79 -
Cash and cash equivalents 620 2,128 733
20,590 25,948 25,152
Total assets 36,709 51,470 41,083
Liabilities
Current liabilities
Trade and other payables 8 (6,466) (7,826) (8,238)
Contract liabilities (382) (810) (498)
Borrowings (1,033) (987) (2,089)
Lease (419) (664) (540)
liabilities
Provisions (307) - (467)
(8,607) (10,287) (11,832)
Non-current liabilities
Borrowings (6,250) (7,982) (6,985)
Lease (5,213) (5,237) (5,361)
liabilities
Provisions (270) - (270)
(11,733) (13,219) (12,616)
Total liabilities (20,340) (23,506) (24,448)
Net assets 16,369 27,964 16,635
Shareholders' equity
Share capital 8,966 8,966 8,966
Share premium account 19,487 19,487 19,487
Reverse acquisition reserve (16,164) (16,164) (16,164)
Share based payment reserve 214 341 165
Foreign exchange reserves (29) (5) 24
Retained earnings 3,895 15,339 4,157
Total equity 16,369 27,964 16,635
Unaudited Consolidated Statement of Changes in Shareholders' Equity
For the six months ended 31 July 2025
Share Capital Reverse acquisition reserve Share based payment reserve Other reserves Retained earnings Total
equity
Share Premium
£'000 £'000 £'000 £'000 £'00s £'000 £'000
6,823 (16,164) 280 - 19,124 28,968
At 1 February 2024 18,905
Loss for the period 1 February 2024 to 31 July 2024 - - (3,785) (3,785)
- - -
Exchange differences arising on translation of overseas subsidiaries - - - (5) - (5)
-
Total comprehensive loss for the period - - (3,785) (3,790)
- - (5)
Transactions with owners in their capacity of owners
Issue of Ordinary Shares, net of transaction costs and tax 2,143 - - - - 2,725
582
Share based payment expense - - - 61 - - 61
Total transactions with owners 2,143 582 - 61 - - 2,786
At 31 July 2024 8,966 19,487 (16,164) 341 (5) 15,339 27,964
Loss for the period 1 August 2024 to 31 January 2025 - - - - (11,182) (11,182)
-
Exchange differences arising on translation of overseas subsidiaries - - - 29 - 29
-
Total comprehensive loss for the period - - - 29 (11,182) (11,153)
-
Transactions with owners in their capacity of owners
Share based payment credit - - - (176) - - (176)
Total transactions with owners - - - (176) - (176)
At 31 January 2025 8,966 19,487 (16,164) 165 24 4,157 16,635
Loss for the period 1 February 2025 to 31 July 2025 - - - - (262) (262)
-
Exchange differences arising on translation of overseas subsidiaries - - - (53) - (53)
-
Total comprehensive loss for the period - - - (53) (262) (315)
-
Transactions with owners in their capacity of owners
Share based payment expense - - - 49 - - 49
Total transactions with owners - - - 49 - - 49
At 31 July 2025 8,966 19,487 (16,164) 214 (29) 3,895 16,369
Unaudited Consolidated Statements of Cash flows
For the six months ended 31 July 2025
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 July 31 July 31 January
2025 2024 2025
£'000 £'000 £'000
Cash flows from operating activities
Loss for the (262) (3,785) (14,967)
period/year
Adjustments for:
Depreciation and amortisation 982 998 2,209
Remeasurement of leases - - 13
Impairment of intangible assets - - 8,492
Impairment of tangible assets and right of use assets - - 1,808
Share based payment expense/(credit) 49 61 (115)
Loss on disposal of tangible assets 77 - 8
Finance income (3) (24) (34)
Finance expense 503 552 1,096
Income tax expense / (credit) (22) 82 (781)
1,324 (2,116) (2,271)
Decrease/(Increase) in inventories 2,074 (375) 660
Decrease/(Increase) in trade and other receivables 1,668 (1,153) (2,214)
(Decrease)/Increase in trade and other payables (1,812) 1,230 1,753
(Decrease)/Increase in contract liabilities (116) 185 (127)
(Decrease)/Increase in provisions (160) - 737
Cash flows generated from/(used in) operations 2,978 (2,229) (1,462)
Taxation (paid)/received 660 (82) (87)
Net cash generated from/(used in) operating activities 3,638 (2,311) (1,549)
Cash flows from investing activities
Bank interest received - 8 10
Interest on lease receivables 3 16 24
Proceeds from sale of short-term investments - 118 197
Purchase of property, plant and equipment (89) (47) (529)
Purchase of intangible assets (43) - (62)
Capitalised development costs (1,033) (380) (1,379)
Net cash used in investing activities (1,162) (285) (1,739)
Cash flows from financing activities
Principal elements of lease payments (349) (372) (758)
Principal elements of lease receipts 55 195 310
Interest on lease liabilities (123) (131) (253)
Interest paid on loans and borrowings (381) (418) (833)
Proceeds from issue of shares - 2,725 2,725
Proceeds from/(Repayment of) invoice finance facility (1,041) (667) 435
Proceeds from revolving credit facility - 2,980 2,980
Repayment of revolving credit facility (750) - (997)
Net cash (used in)/generated from financing activities (2,589) 4,312 3,609
Net (decrease)/increase in cash and cash equivalents (113) 1,716 321
Cash and cash equivalents at the beginning of the period/year 733 412 412
Cash and cash equivalents at the end of the period/year 620 2,128 733
Notes to the Unaudited Interim Financial Statements
For the six months ended 31 July 2025
1. Basis of Preparation
This condensed consolidated interim financial information for the six months
ended 31 July 2025 have been prepared in accordance with AIM rule 18 in
relation to half year reports. This information should be read in conjunction
with the annual financial statements for the year ended 31 January 2025, which
have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union.
2. Going concern basis
The Group relies on a combination of cash generated from operations and
borrowing facilities from external lenders to finance its ongoing operations.
The Group has access to a revolving credit facility ('RCF') of £10.0 million
and an invoice finance facility of up to £5.0 million. The RCF facility
contains certain customary financial covenants relating to the Group.
The Directors have considered financial projections for the next 18 months
covering several scenarios, these include a significant (10%) revenue downside
versus the budget for the period. These projections demonstrate that the Group
can operate within the facilities available to it and meet the relevant
covenant targets for the foreseeable future. The Directors, after taking into
account the available facilities, its trading projections including working
capital requirements believe that they have a reasonable basis for concluding
that the Group has adequate liquidity to continue as a going concern and have
therefore adopted the going concern basis in the preparation of these
financial statements. The financial statements do not reflect any adjustments
that would be required if they were prepared on a basis other than the going
concern basis.
3. Interim financial information
The interim financial information for the period ended 31 July 2025 is
unaudited and does not constitute statutory accounts within the meaning of
Section 434 of the Companies Act 2006. The interim financial information for
the period ended 31 July 2024 is also unaudited. The audited accounts for the
year ended 31 January 2025 for Inspiration Healthcare Group plc were approved
by its Board of Directors on 5 June 2025 and have been delivered to the
Registrar of Companies with an unqualified audit report.
The Company's annual report and financial statements for the year ended 31
January 2025 were prepared under International Financial Reporting Standards
(IFRS) as adopted by the European Union, International Financial Reporting
Interpretations Committee (IFRIC) interpretations and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS. The standards
used are those published by the International Accounting Standards Board
(IASB) and endorsed by the EU at the time of preparing those statements.
4. Non-recurring items
Non-recurring items are items which, given their nature, management believes
should be disclosed separately for the purposes of presenting the results of
the Group and the earnings per share figures.
During the six months ended 31 July 2025, the Group recognised £17,000 of
non-recurring costs (2025: £12,802,000):
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
31 July 31 July 31 January
2025 2024 2025
£'000 £'000 £'000
Impairment of goodwill and other assets - - 10,300
Contingent consideration (74) 782 813
Acquisition costs - (3) -
Restructuring costs 45 360 1,584
Other 46 64 105
Total 17 1,203 12,802
An exceptional credit was recognised in the current period of £74,000
relating to the foreign exchange movement on the contingent consideration due
to the former shareholders of Airon Corporation, which was settled in June
2025.
In the six-month period ended 31 July 2025, the Group recognised restructuring
costs of £45,000 (FY25: £1,584,000), which related to redundancy costs and
legal fees associated with the exit of vacated premises in Croydon. In the
year ended 31 January 2025, the restructuring costs also included payments to
directors for loss of office, expenses associated with the recruitment of the
new CEO and dilapidation provisions associated with the exit of vacated
premised in Hailsham and Croydon.
5. Loss per ordinary share
Basic loss per share for the period is calculated by dividing the loss
attributable to ordinary shareholders for the year after tax by the weighted
average number of shares in issue.
Diluted loss per share is calculated by adjusting the weighted average number
of ordinary shares in issue to assume conversion of all potential dilutive
ordinary shares. No diluted loss per share is presented for the period ended
31 July 2025 as the exercise of share options would have the effect of
reducing the loss per share and is therefore not dilutive.
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
31 July 31 July 31 January
2025 2024 2025
Loss attributable to equity holders of the Company £'000 (262) (3,785) (14,967)
Weighted average number of ordinary shares in issue during the period/year 89,663,372 69,300,311 79,534,567
Basic loss per share (pence) (0.29) (5.46) (18.82)
6. Inventory
Unaudited 31 July 2025 Unaudited 31 July 2024 Audited
£'000 £'000 31 January 2025
£'000
Raw materials 5,912 7,212 7,233
Work in progress 589 1,546 337
Finished goods 4,508 5,360 5,513
Total 11,009 14,118 13,083
7. Trade and Other Receivables
Unaudited 31 July 2025 Unaudited 31 July 2024 Audited
£'000 £'000 31 January 2025
£'000
Trade receivables 7,297 8,718 9,594
Loss allowance (225) (498) (247)
Net trade receivables 7,072 8,220 9,347
Net investment in leases 111 290 166
Other taxes and social security 601 - 319
R&D tax credits receivable 142 - 786
Other receivables 84 500 93
Prepayments and accrued income 951 613 625
Total 8,961 9,623 11,336
8. Trade and Other Payables
Unaudited 31 July 2025 Unaudited 31 July 2024 Audited
£'000 £'000 31 January 2025
£'000
Trade payables 4,314 5,280 5,661
Corporation tax payable - 82 -
Other taxes and social security 197 463 404
Other payables 205 538 184
Accrued expenses 1,750 1,463 1,989
Total 6,466 7,826 8,238
9. Net Debt (excluding IFRS 16 lease liabilities)
In the reporting of its financial performance, the Group uses certain measures
that are not defined under IFRS, the Generally Accepted Accounting Principles
(GAAP) under which the Group reports. One of these measures is net debt
(excluding IFRS 16 lease liabilities), which consists of:
Unaudited 31 July 2025 Unaudited 31 July 2024 Audited
£'000 £'000 31 January 2025
£'000
Cash and cash equivalents 620 2,128 733
Revolving credit facility (6,250) (7,982) (6,985)
Invoice financing borrowings (1,033) (987) (2,089)
Total (6,663) (6,841) (8,341)
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