Trading update for the six months to 31 July 2024
H1 revenues £17.0m in line with expectations; neonatal growth slower than expected but Infusion up 16%.
vs expectations: in line
- H1 revenues £17.0m
- Neonatal revenues £12.0m
- Infusion Therapies revenues £5.0m (prior £4.3m)
- Gross margin approximately 44.5%
- Net debt (excluding IFRS16) £6.7m
- Fundraise completed £3.0m
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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.
To register for the presentation, please use this link.
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