Inspiration Healthcare Dividends - IHC

Inspiration Healthcare Dividends - IHC

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Stock Name Stock Symbol Market Stock Type
Inspiration Healthcare Group Plc IHC London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 114.00 08:00:00
Open Price Low Price High Price Close Price Previous Close
114.00 114.00 114.00 114.00 114.00
more quote information »
Industry Sector
HEALTH CARE EQUIPMENT & SERVICES

Inspiration Healthcare IHC Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
27/04/2021FinalGBX0.431/01/202031/01/202101/07/202102/07/202130/07/20210.6
06/10/2020InterimGBX0.231/01/202031/07/202026/11/202027/11/202029/12/20200

Top Dividend Posts

DateSubject
08/5/2021
14:33
xtrmntr: Crawley-based Inspiration Healthcare (IHC:120p), a fully integrated medical technology company with a strong focus on the high-growth neonatal intensive care market, has posted a major earnings beat on all levels.With the company's gross margin five percentage points higher than Cenkos Securities 43.6 per cent forecast, and annual revenues more than doubling to £37m, gross margin of £18m was £2.1m above analysts' estimates and operating profit of £4.3m was almost 50 per cent higher, too. Adjusted earnings per share (EPS) of 6.9p increased 90 per cent year on year, and net cash of £10.7m (15p a share) was almost double forecasts. Last summer's acquisition of SLE, a designer and maker of ventilators for neonatal intensive care, contributed £9.4m to revenue and there were £7.3m of one-off Covid-19 ventilators orders, too, but underlying revenue still increased 14 per cent. There is every reason to expect the positive trend to continue.In the past seven weeks, the company has received regulatory approval in Japan and China for its enhanced top-of-the-range SLE6000 neonatal ventilator that includes features such as enhanced High Frequency Oscillatory Ventilation (designed for use with critically ill infants) and the OxyGenie ® patented oxygen control algorithm (helps maintain infants at their targeted oxygen saturation levels). The higher-margin product has already received £650,000 of orders and chief executive Neil Campbell says that the two territories generated £2.8m-worth of orders with the old model, suggesting decent growth to come from the current base. SLE received a Queens Award for Enterprise this week in recognition of its work in developing an infant ventilator with the OxyGenie closed-loop software algorithm. It can only help boost sales.Sensibly, Inspiration is investing £2m in new facilities which will be operational this autumn to support additional growth capacity. The company is also making progress with its patented non-invasive, non-pharmaceutical respiratory device for apnoea of prematurity, aiming to sell it next year into a target market affecting 1.5m babies annually in the US, Europe and Japan.I suggested buying the shares, at 75p, last autumn (Alpha Research: 'Profit from a medical technology winner', 27 October 2020), and on an enterprise valuation of 12.5 times cash profit estimates, I see ample upside to my 150p target. Buy.
21/4/2021
13:16
shauney2: A very positive move into China. IHC have recieved approval and an immediate order from its distributor in China worth approximately £250,000for neonatal ventilator.Delivery during May 2021. Neil Campbell, Chief Executive Officer, commented "We are delighted that SLE has received approval for the SLE6000 in what is potentially one of our largest markets and also to announce that we have hit the ground running with a large order for immediate delivery.China represents a significant growth opportunity for the Group"
23/3/2021
08:14
penpont: Simon Thompson commented on IHC yesterday in IC, concluding: 'Inspiration’s share price has kicked on 39 per cent since I highlighted the investment opportunity at 90p (‘Five small-caps with earnings upgrade tailwinds’, 2 February 2021), and is 67 per cent higher than when I initiated coverage, at 75p (Alpha Research: ‘Profit from a medical technology winner’, 27 October 2020). Trading on a trailing cash-adjusted price/earnings (PE) ratio of 20, Inspiration’s growth potential is still not yet fully priced in and I raise my target price to 150p. Buy.'
11/2/2021
12:16
strollingmolby: Hi - I found this article that was issued a week ago... HTTPS://www.investorschronicle.co.uk/ideas/2021/02/02/five-small-caps-with-earnings-upgrade-tailwinds/ Inspiration Healthcare’s neonatal care drives hefty upgrades Operating profit estimates upgraded 18 per cent. SLE acquisition delivers increasing sales. Crawley-based Inspiration Healthcare (IHC:90p), a fully integrated medical technology company with a strong focus on the high growth neonatal intensive care market, is reaping the benefits of last summer’s £18m complementary acquisition of SLE, a designer and manufacturer of four types of ventilators for neonatal intensive care. SLE always looked like a good fit. That’s because Inspiration’s range of neonatal respiratory products support and assist the care of preterm infants by providing resuscitation, stabilisation and respiratory support. SLE’s sales have increased steadily since the deal completed in July, partly due to one-off Covid-19 orders but also reflects other factors such as cross-selling opportunities across the enlarged group (neonatal respiratory disposables and breathing circuits, for example). Inspiration’s directors note that the operational savings identified at the time of the acquisition are being achieved. The addition of SLE’s 30,000 sq. ft. facility in Croydon for the assembly of technically advanced capital equipment means that Inspiration now has 50,000 sq. ft. of manufacturing capacity. Inspiration is now less reliant on third party products, too. Moreover, with Inspiration’s annual revenue set to more than double to at least £36.5m (3 per cent ahead of forecasts) on a gross margin of around 43.6 per cent, then a higher proportion of incremental margin earned drops through to profit given Inspiration’s relatively fixed cost base. This explains why house broker Cenkos Securities has raised its operating profit estimate by 18 per cent to £2.86m, an 88 per cent year-on-year increase. On this basis, Cenkos expects adjusted EPS of 5.9p, up from 3.8p in the 2019/20 financial year, and closing net cash of £5.4m (8p a share). The SLE acquisition was one reason why I suggested buying the shares, at 75p (Alpha Research: ‘Profit from a medical technology winner’, 27 October 2020), noting that the enlarged business is well placed to benefit from organic growth trends in overseas markets while reaping synergy benefits across a wider customer base. Those dynamics are still at play. So, with the shares priced on a modest cash-adjusted forward PE ratio of 13.5, I maintain my 105p target price. Buy.
11/2/2021
10:41
techno20: Great to see IHC smashing through £1. Cant see any particular reason why. Have I missed anything?
03/2/2021
10:34
rivaldo: Ah - no wonder the price has risen! Must admit to being surprised at IHC reaching these levels. Well done to holders here. I sold too early but from memory I suspect the proceeds went into other stocks which have also risen since. So swings and roundabouts!
28/10/2020
09:12
rivaldo: I've taken advantage of the Simon Thompson-induced rise to take decent profits and sell out yesterday and today. This is partly because I needed to top up funds after investing elsewhere (CLX if anyone's interested - see my thread). But also because I'm a little unsure about IHC. The P/E to Jan' 22 is now around 17, which isn't cheap. The big SLE acquisition is apparently heavily weighted towards IHC's H1, so growth in this current H2 to Jan'21 may look somewhat light. Finally, the pandemic has caused a fall in already declining global birth rates. GLA - IHC looks a decent company, I'm just not sure that the high P/E is justified by the forward earnings and other factors. Though of course further large acquisitions could change all that!
11/6/2020
09:30
hastings: Good to enjoy your company as always Rivaldo! Not sure if this will be of interest or not, but I penned this piece on IHC for the Mike Walters board early May. It may touch on a few things that haven't been mentioned elsehwere. No share, or very rarely, ticks all the boxes, but when a number of factors come together positively it is usually worth delving deeper and considering its investment merits. The first thing to note with IHC is that it operates in a market that is in many ways somewhat insulated from the effects of any impending recession or the inevitable downturn. That is because the company is a supplier of life saving medical devices in areas of neonatal intensive care and patient warming, which by their nature are pretty much non negotiable, perhaps even more so in these strange times. More on that in a while, but in addition to operating in what can be seen as a constant market place, IHC is firstly profitable, holds net cash of £4.5m, stands on a PEG of 0.42 and in its most recent results delivered impressive organic growth of 12%. There are a few potential negatives if you use the likes of Stockopedia or other platforms, but as I always like to add, it is worth remembering that such tools are largely lagging, working on historic numbers/data and often do not take into account the most recent events or data related to a company's prospects. Admittedly though, at the current price of 62p the shares trading on a forward PER of 14 probably look priced about right at present, particularly in such uncertain times. However, IHC appears to have some really excellent growth prospects and it is interesting to note that it has, over the last few years cemented a very strong relationship with the NHS as demonstrated by recent news which is now assisting the company in further delivering on its business plan. Regarding the recent news here, having announced on the 16th March that it was to supply ventilators to the NHS for the fight against Covid19 which was a positive in itself, it subsequently went on to announce additional orders for other medical equipment and further ventilators to the value of £4m. Then, last Friday, confirming that a first batch of ventilators had arrived in the UK the company added that it had extended its 24 hour helpline facility to clinical staff at all UK hospitals in relation to access to qualified personnel employed directly by IHC relating specifically to the ventilators. Broker Cenkos described the news as a hugely significant announcement for the company and highlights the close relationship the team has developed with both the NHS and its commercial partners. Further positive news was also forthcoming last month too concerning a collaboration with Genedrive regarding its anibiotic induced hearing loss test across the UK and Ireland. The companies also expect to expand the scope of the contract over time to engage Inspiration Healthcare's network of more than 50 neonatal-focused sub-distributors around the world. The Genedrive MT-RNR1 AIHL test is the world's first point-of-care genetic test designed for use in a neonatal intensive care setting. The test screens newborns for a genetic mutation called mt-RNR1 that can cause lifelong and irreversible deafness to a child upon administration of certain antibiotics. “Our agreement with Inspiration Healthcare combines genedrive's innovative first-to-market AIHL product, with a thought-leading healthcare company with a specialist emphasis on neonatal care,” David Budd, Genedrive's chief executive officer said in a statement. “Inspiration Healthcare has a strong track record in the introduction of new technologies and over many years they have developed an extensive network of key opinion leaders that will be very beneficial as we bring the Genedrive AIHL test to market together,” he added. Neil Campbell, the CEO of Inspiration Healthcare, said the company was “delighted to be able to work with genedrive”. “Our focus has always been products that can have a profound effect on the patient outcome and we look forward to working with genedrive to make this test the standard of care in the UK and the wider neonatal community around the world,” he added. Having also released its full year results last month, revenue for full year 2020 came out at £17.8m which saw the critical care market provide for £11.4m of sales which enjoyed a 7% increase where its AlphaCore5 warming system for patients in neonatal intensive care units was a key driver. Sales for Operating Theatres came out at £1.7m whilst Home Healthcare revenues jumped by 50% year on year which now sees the company distributing Micrel parenteral feeding products. With a decent mix of its own brands complementing others, both of which are focused on disruptive innovative technologies the company looks well set to continue on a growth trajectory which is likely to boost impressive organic growth by timely made acquisitions. To this end, it made its first purchase last year in the form of Viomedix for £4m (placing) and given the prevailing climate, this looks to be an excellent acquisition as the acquired business provides innovative solutions to resolving patient problems in the respiratory care market. What's more, it is very much specialised in the designing and supplying of disposable respiratory products and sterile medical consumables including breathing circuits, perforators and surgical markers. Returning to the neonatal area where the company is very much focused it is worth noting that according to various industry reports, particularly that of Grand View Research Inc, the fetal and neonatal care equipment market is expected to be worth some $10.6b by 2026 based on an expanding compounded annual growth rate of 6.9%. Although IHC is already making sound progress in this sector it isn't resting on its laurels and has, within its pipeline of novel products/devices a very recently US (recently patent granted) project named Project Wave. The company entered into a licence agreement in 2019 with a major US West Coast University to develop what is described as a new ground breaking device that will target apnea of prematurity which is defined as the cessation of breathing by a premature infant that lasts for more than 20 seconds and is accompanied by often very serious complications. Treatments that have been used for almost three decades have raised concerns of long term negative effects, so IHC looks to have identified a positive health and commercial opening with what is described as a ground breaking respiratory device that is now expected to move quickly to trials this summer. Research at the university involved has found that the device could help to normalise an infant’s breathing rate and reduce apnoea associated with prematurity. Inspiration Healthcare have indicated that over 1.5 million babies suffer from apnoea of prematurity (or require respiratory support) each year, indicating a potential market size for Project Wave of over $60m per year. A significant feature of Inspiration Healthcare’s business strategy is, according to broker Cenkos its focus on the neonatal intensive care market. This is an essential, non-elective market where – premature and unwell newborns in western markets will be treated regardless of economic pressures. The company, which was once a pure distributor of medical equipment has now grown into a fully integrated medtech technology company within the neonatal intensive care setting which doesn't appear to be reflected in its market valuation where many still seem to perceive it as pure distribution play. In that context, the current market cap of £24m looks pretty modest, particularly in light of an increasing proportion of Inspiration’s revenues (46%) and profits being generated from the sale of equipment under its own brand. This provides the company with greater product control and the generation of improved margins. With an already established footprint across the UK and Ireland the company will look to expand that further whilst it is also actively looking to increase its presence across international markets which at present only accounts for circa 12% of revenue. Looking ahead to the financial year in play, Cenkos is expecting revenue of £20.4m, Ebitda £2.83m and adjusted pre-tax profits of £1.88m providing for EPS of 4.2p aND net cash is expected to improve to £4.7m. The 52 week range of the shares is a low of 55p against a high of 90p, which suggests that if future progress is maintained as expected, alongside another timely acquisition, then investors eyeing the medium-longer term could be suitably rewarded. Obviously there are some big name players also operating in the space but given the number of active smaller players gives it something of a fragmented look suggesting a ripe environment for consolidation. IHC has clearly made solid progress in recent years and the management appear sound with a conservative approach as revenues largely organic driven have improved from £9.5m in 2015 (listing year, via reverse into (Inditherm) up to the recently reported £17.8m. Pre-tax profits have also in the last three years begun to build momentum and the board has already stated an intention to commence a progressive dividend policy
06/5/2020
11:58
hastings: Posted on the other thread too. I haven't had time to digest fully the new broker note this morning, but suffice to say that a continued positive performance on the back of this mornings update should result in an upgrade. Anyway, penned this for interest, was earmarked for my column but I'll probably write that again now. No share, or very rarely does one tick all the boxes, but when a number of factors come together positively, it is usually worth delving deeper and considering its investment merits. The first thing to note with IHC is that it operates in a market that is in many ways somewhat insulated from the effects of any impending recession or the inevitable downturn. That is because the company is a supplier of life saving medical devices in areas of neonatal intensive care and patient warming, which by their nature are pretty much non negotiable, perhaps even more so in these strange times. More on that in a while, but in addition to operating in what can be seen as a constant market place, IHC is firstly profitable, holds net cash of £4.5m, stands on a PEG of 0.42 and in its most recent results delivered impressive organic growth of 12%. There are a few potential negatives if you use the likes of Stockopedia or other platforms, but as I always like to add, it is worth remembering that such tools are largely lagging, working on historic numbers/data and often do not take into account the most recent events or data related to a company's prospects. Admittedly though, at the current price of 62p the shares trading on a forward PER of 14 probably look priced about right at present, particularly in such uncertain times. However, IHC appears to have some really excellent growth prospects and it is interesting to note that it has, over the last few years cemented a very strong relationship with the NHS as demonstrated by recent news which is now assisting the company in further delivering on its business plan. Regarding the recent news here, having announced on the 16th March that it was to supply ventilators to the NHS for the fight against Covid19 which was a positive in itself, it subsequently went on to announce additional orders for other medical equipment and further ventilators to the value of £4m. Then, last Friday, confirming that a first batch of ventilators had arrived in the UK the company added that it had extended its 24 hour helpline facility to clinical staff at all UK hospitals in relation to access to qualified personnel employed directly by IHC relating specifically to the ventilators. Broker Cenkos described the news as a hugely significant announcement for the company and highlights the close relationship the team has developed with both the NHS and its commercial partners. Further positive news was also forthcoming last month too concerning a collaboration with Genedrive regarding its anibiotic induced hearing loss test across the UK and Ireland. The companies also expect to expand the scope of the contract over time to engage Inspiration Healthcare's network of more than 50 neonatal-focused sub-distributors around the world. The Genedrive MT-RNR1 AIHL test is the world's first point-of-care genetic test designed for use in a neonatal intensive care setting. The test screens newborns for a genetic mutation called mt-RNR1 that can cause lifelong and irreversible deafness to a child upon administration of certain antibiotics. “Our agreement with Inspiration Healthcare combines genedrive's innovative first-to-market AIHL product, with a thought-leading healthcare company with a specialist emphasis on neonatal care,” David Budd, Genedrive's chief executive officer said in a statement. “Inspiration Healthcare has a strong track record in the introduction of new technologies and over many years they have developed an extensive network of key opinion leaders that will be very beneficial as we bring the Genedrive AIHL test to market together,” he added. Neil Campbell, the CEO of Inspiration Healthcare, said the company was “delighted to be able to work with genedrive”. “Our focus has always been products that can have a profound effect on the patient outcome and we look forward to working with genedrive to make this test the standard of care in the UK and the wider neonatal community around the world,” he added. Having also released its full year results last month, revenue for full year 2020 came out at £17.8m which saw the critical care market provide for £11.4m of sales which enjoyed a 7% increase where its AlphaCore5 warming system for patients in neonatal intensive care units was a key driver. Sales for Operating Theatres came out at £1.7m whilst Home Healthcare revenues jumped by 50% year on year which now sees the company distributing Micrel parenteral feeding products. With a decent mix of its own brands complementing others, both of which are focused on disruptive innovative technologies the company looks well set to continue on a growth trajectory which is likely to boost impressive organic growth by timely made acquisitions. To this end, it made its first purchase last year in the form of Viomedix for £4m (placing) and given the prevailing climate, this looks to be an excellent acquisition as the acquired business provides innovative solutions to resolving patient problems in the respiratory care market. What's more, it is very much specialised in the designing and supplying of disposable respiratory products and sterile medical consumables including breathing circuits, perforators and surgical markers. Returning to the neonatal area where the company is very much focused, it is worth noting that according to various industry reports, particularly that of Grand View Research Inc, the fetal and neonatal care equipment market is expected to be worth some $10.6b by 2026 based on an expanding compounded annual growth rate of 6.9%. Although IHC is already making sound progress in this sector it isn't resting on its laurels and has, within its pipeline of novel products/devices a very recently US (recently patent granted) project named Project Wave. The company entered into a licence agreement in 2019 with a major US West Coast University to develop what is described as a new ground breaking device that will target apnea of prematurity which is defined as the cessation of breathing by a premature infant that lasts for more than 20 seconds and is accompanied by often very serious complications. Treatments that have been used for almost three decades have raised concerns of long term negative effects, so IHC looks to have identified a positive health and commercial opening with what is described as a ground breaking respiratory device that is now expected to move quickly to trials this summer. Research at the university involved has found that the device could help to normalise an infant’s breathing rate and reduce apnoea associated with prematurity. Inspiration Healthcare have indicated that over 1.5 million babies suffer from apnoea of prematurity (or require respiratory support) each year, indicating a potential market size for Project Wave of over $60m per year. A significant feature of Inspiration Healthcare’s business strategy is, according to broker Cenkos a focus on the neonatal intensive care market. This is an essential, non-elective market where – premature and unwell newborns in western markets will be treated regardless of economic pressures. The company, which was once a pure distributor of medical equipment has now grown into a fully integrated medtech technology company within the neonatal intensive care setting, which doesn't appear to be reflected in its market valuation where many still seem to perceive it as pure distribution play. In that context, the current market cap of £24m looks pretty modest, particularly in light of an increasing proportion of Inspiration’s revenues (46%) and profits being generated from the sale of equipment under its own brand. This provides the company with greater product control and the generation of improved margins. With an already established footprint across the UK and Ireland the company will look to expand that further whilst it is also actively looking to increase its presence across international markets which at present only accounts for circa 12% of revenue. Looking ahead to the financial year in play, Cenkos is expecting revenue of £20.4m, Ebitda £2.83m and adjusted pre-tax profits of £1.88m providing for EPS of 4.2p aND net cash is expected to improve to £4.7m. The 52 week range of the shares is a low of 55p against a high of 90p, which suggests that if future progress is maintained as expected, alongside another timely acquisition, then investors eyeing the medium-longer term could be suitably rewarded. Obviously there are some big name players also operating in the space but given the number of active smaller players gives it something of a fragmented look, suggesting a ripe environment for consolidation. IHC has clearly made solid progress in recent years and the management appear sound with a conservative approach, as revenues largely organic driven have improved from £9.5m in 2015 (listing year, via reverse into (Inditherm) up to the recently reported £17.8m. Pre-tax profits have also in the last three years begun to build momentum and the board has already stated an intention to commence a progressive dividend policy as of next year.
06/5/2020
10:08
hastings: I haven't had time to digest fully the new broker note this morning, but suffice to say that a continued positive performance on the back of this mornings update should result in an upgrade. Anyway, penned this for interest, was earmarked for my column but I'll probably write that again now. No share, or very rarely does one tick all the boxes, but when a number of factors come together positively, it is usually worth delving deeper and considering its investment merits. The first thing to note with IHC is that it operates in a market that is in many ways somewhat insulated from the effects of any impending recession or the inevitable downturn. That is because the company is a supplier of life saving medical devices in areas of neonatal intensive care and patient warming, which by their nature are pretty much non negotiable, perhaps even more so in these strange times. More on that in a while, but in addition to operating in what can be seen as a constant market place, IHC is firstly profitable, holds net cash of £4.5m, stands on a PEG of 0.42 and in its most recent results delivered impressive organic growth of 12%. There are a few potential negatives if you use the likes of Stockopedia or other platforms, but as I always like to add, it is worth remembering that such tools are largely lagging, working on historic numbers/data and often do not take into account the most recent events or data related to a company's prospects. Admittedly though, at the current price of 62p the shares trading on a forward PER of 14 probably look priced about right at present, particularly in such uncertain times. However, IHC appears to have some really excellent growth prospects and it is interesting to note that it has, over the last few years cemented a very strong relationship with the NHS as demonstrated by recent news which is now assisting the company in further delivering on its business plan. Regarding the recent news here, having announced on the 16th March that it was to supply ventilators to the NHS for the fight against Covid19 which was a positive in itself, it subsequently went on to announce additional orders for other medical equipment and further ventilators to the value of £4m. Then, last Friday, confirming that a first batch of ventilators had arrived in the UK the company added that it had extended its 24 hour helpline facility to clinical staff at all UK hospitals in relation to access to qualified personnel employed directly by IHC relating specifically to the ventilators. Broker Cenkos described the news as a hugely significant announcement for the company and highlights the close relationship the team has developed with both the NHS and its commercial partners. Further positive news was also forthcoming last month too concerning a collaboration with Genedrive regarding its anibiotic induced hearing loss test across the UK and Ireland. The companies also expect to expand the scope of the contract over time to engage Inspiration Healthcare's network of more than 50 neonatal-focused sub-distributors around the world. The Genedrive MT-RNR1 AIHL test is the world's first point-of-care genetic test designed for use in a neonatal intensive care setting. The test screens newborns for a genetic mutation called mt-RNR1 that can cause lifelong and irreversible deafness to a child upon administration of certain antibiotics. “Our agreement with Inspiration Healthcare combines genedrive's innovative first-to-market AIHL product, with a thought-leading healthcare company with a specialist emphasis on neonatal care,” David Budd, Genedrive's chief executive officer said in a statement. “Inspiration Healthcare has a strong track record in the introduction of new technologies and over many years they have developed an extensive network of key opinion leaders that will be very beneficial as we bring the Genedrive AIHL test to market together,” he added. Neil Campbell, the CEO of Inspiration Healthcare, said the company was “delighted to be able to work with genedrive”. “Our focus has always been products that can have a profound effect on the patient outcome and we look forward to working with genedrive to make this test the standard of care in the UK and the wider neonatal community around the world,” he added. Having also released its full year results last month, revenue for full year 2020 came out at £17.8m which saw the critical care market provide for £11.4m of sales which enjoyed a 7% increase where its AlphaCore5 warming system for patients in neonatal intensive care units was a key driver. Sales for Operating Theatres came out at £1.7m whilst Home Healthcare revenues jumped by 50% year on year which now sees the company distributing Micrel parenteral feeding products. With a decent mix of its own brands complementing others, both of which are focused on disruptive innovative technologies the company looks well set to continue on a growth trajectory which is likely to boost impressive organic growth by timely made acquisitions. To this end, it made its first purchase last year in the form of Viomedix for £4m (placing) and given the prevailing climate, this looks to be an excellent acquisition as the acquired business provides innovative solutions to resolving patient problems in the respiratory care market. What's more, it is very much specialised in the designing and supplying of disposable respiratory products and sterile medical consumables including breathing circuits, perforators and surgical markers. Returning to the neonatal area where the company is very much focused, it is worth noting that according to various industry reports, particularly that of Grand View Research Inc, the fetal and neonatal care equipment market is expected to be worth some $10.6b by 2026 based on an expanding compounded annual growth rate of 6.9%. Although IHC is already making sound progress in this sector it isn't resting on its laurels and has, within its pipeline of novel products/devices a very recently US (recently patent granted) project named Project Wave. The company entered into a licence agreement in 2019 with a major US West Coast University to develop what is described as a new ground breaking device that will target apnea of prematurity which is defined as the cessation of breathing by a premature infant that lasts for more than 20 seconds and is accompanied by often very serious complications. Treatments that have been used for almost three decades have raised concerns of long term negative effects, so IHC looks to have identified a positive health and commercial opening with what is described as a ground breaking respiratory device that is now expected to move quickly to trials this summer. Research at the university involved has found that the device could help to normalise an infant’s breathing rate and reduce apnoea associated with prematurity. Inspiration Healthcare have indicated that over 1.5 million babies suffer from apnoea of prematurity (or require respiratory support) each year, indicating a potential market size for Project Wave of over $60m per year. A significant feature of Inspiration Healthcare’s business strategy is, according to broker Cenkos a focus on the neonatal intensive care market. This is an essential, non-elective market where – premature and unwell newborns in western markets will be treated regardless of economic pressures. The company, which was once a pure distributor of medical equipment has now grown into a fully integrated medtech technology company within the neonatal intensive care setting, which doesn't appear to be reflected in its market valuation where many still seem to perceive it as pure distribution play. In that context, the current market cap of £24m looks pretty modest, particularly in light of an increasing proportion of Inspiration’s revenues (46%) and profits being generated from the sale of equipment under its own brand. This provides the company with greater product control and the generation of improved margins. With an already established footprint across the UK and Ireland the company will look to expand that further whilst it is also actively looking to increase its presence across international markets which at present only accounts for circa 12% of revenue. Looking ahead to the financial year in play, Cenkos is expecting revenue of £20.4m, Ebitda £2.83m and adjusted pre-tax profits of £1.88m providing for EPS of 4.2p aND net cash is expected to improve to £4.7m. The 52 week range of the shares is a low of 55p against a high of 90p, which suggests that if future progress is maintained as expected, alongside another timely acquisition, then investors eyeing the medium-longer term could be suitably rewarded. Obviously there are some big name players also operating in the space but given the number of active smaller players gives it something of a fragmented look, suggesting a ripe environment for consolidation. IHC has clearly made solid progress in recent years and the management appear sound with a conservative approach, as revenues largely organic driven have improved from £9.5m in 2015 (listing year, via reverse into (Inditherm) up to the recently reported £17.8m. Pre-tax profits have also in the last three years begun to build momentum and the board has already stated an intention to commence a progressive dividend policy as of next year.
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