18th Feb 2025 16:34
(Alliance News) - Inspiration Healthcare Group PLC on Tuesday said it was "frustrated" by delays to its Middle Eastern contract as the firm reported strong second-half revenue.
Inspiration Healthcare is a West Sussex, England-based company that sells products to the hospital sector.
The firm said revenue rose 1.9% to GBP38.3 million for the 12 months ended 31 January 2025, from GBP37.6 million the prior year, with Inspiration crediting this improvement to "a strong second half".
The firm reported revenue of GBP21.3 million for the six months ended January 31 2025, compared to GBP17.8 million in its first half of financial 2025.
Shares in the firm surged 85% to 24.99 pence on Tuesday afternoon in London.
Earnings before interest, tax, depreciation and amortisation are anticipated to be positive for financial 2025, said the firm. For the prior year it achieved Ebitda of GBP2.0 million.
The firm added that it did not realise any revenue from its USD4.3 million Middle Eastern SLE6000 ventilator contract during the financial year as the initial shipment was held awaiting customs clearance. It expects revenue from this shipment of approximately USD2 million to be recognised in early financial 2026 on receipt of goods by the customer.
It added that the second and final shipment is expected to be made in financial 2026 following receipt of the final letter of credit.
Inspiration noted that it expects the strong sales momentum realised in its fourth quarter to continue into the new financial year, stating that "business performance continues to improve".
It also secured its largest single contract valued at USD6 million for SLE6000 and SLE1500 ventilators plus associated accessories and consumables, prior to the year end, said Inspiration. Delivery for this contract is expected for the first half of financial 2026.
The firm added that its cost reduction programme implemented in financial 2025 delivered annualised savings of GBP1.25 million.
Non-Executive Chair Roy Davis commented: "While revenues were therefore slightly behind market expectations we have delivered a positive Ebitda for the full year.
"While frustrated with the delays to the Middle Eastern contract, this has been outside of our control and having secured the first shipment it is now expected to be fully executed in FY26. We are also delighted to have secured in H2 our largest single contract to date for USD6 million with an international trusted Non-Governmental humanitarian aid organisation, for delivery in the first half of FY26."
"Our goal is to build on the momentum from the second half of last year to deliver sustained growth in revenue, profit and cash generation."
By Christopher Ward, Alliance News reporter
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