Inspiration Healthcare Group PLC – Preliminary Results

Inspiration Healthcare Group plc (AIM: IHC), the global medical device company, today announces its preliminary results for the twelve months ended 31 January 2019.

Financial highlights:

• EBITDA¹ up 13% to £1.65m (FY2018: £1.45m)
• Revenue stable at £15.5m (FY2018: £15.5m), constrained by well publicised industry wide regulatory delays
• Operating Profit of £1.2m in line with expectations (FY2018: £1.2M)
• Record International sales up 12% to £5.4m (FY2018: £4.8m), with the strongest growth coming from the USA with sales up 71%
• New products launched generated revenues of £1.4m in FY2019, showcasing the Group’s well-established product development pipeline
• Cash remains strong, ending the year at £2.5m (2018: £2.1m)

¹ Earnings before interest, taxation, depreciation, amortisation and share based payments (“EBITDA”)

See Operating and Financial Review for reconciliation

Operational highlights: 

• Launched the Alphacore⁵ Patient Warming System, which provides safe and controlled warming to assist in the maintenance of normothermia
• The Group received its largest ever order for a Patient Warming System, with 500 Alphacore⁵ systems being shipped to over 200 hospitals for treating newborn babies throughout Poland
• Strong product pipeline with a Licence Agreement signed with a major US university to allow us to develop a novel respiratory device (“Project Wave”)
• Received certification to Medical Device Single Audit Programme in 4 countries (USA, Canada, Japan and Australia) and ISO 13485:2016, which reduces the need for external audits, positioning the Company well to increase sales in these territories
• Strengthened senior management team with Head of Operations appointment
• Won a Queens’s Award for Enterprise 

Neil Campbell, Chief Executive Officer, said today: “I am pleased that we have achieved our profit expectations for a year in which the regulatory issues that consume our industry provided us with many challenges and constrained our revenue growth.  The investment we have made in key areas of our business has started to pay off with 9% of revenues coming from new products, including the recently launched Patient Warming System, and 12% growth in international revenues.  We have strengthened our management team and passed two new major Quality Management System audits which will allow us to capitalise on recent international growth.  With a strong order book at the beginning of the new year, I am confident that we are well placed to achieve our expectations for the year ahead.”