Inspiration Healthcare Share Discussion Threads

[lammylover] 13/5/2020 10:15

The MMs on this share keep playing the same games, day after day (boring) - trying to pick up cheap shares at <60p and it ain't working. Come on guys, change the tune!
If you've got no volume (and no commission) try raising the price for a change..

[troutisout] 13/5/2020 10:15

IHC provide some of the parts to the Penlon ventilator, but are contracted by the Cabinet Office to man a 24/7 hotline for all of the ventilators produced by the consortium (the Penlon and Smiths ones), as well as the ones they have supplied direct to the NHS from the recent £5.25m orders.

However the major fillip will be working alongside these other engineering companies and making huge networking inroads within the NHS and Govt.

[troutisout] 13/5/2020 10:14

Certainly will, didn't expect sub 60p but took advantage as did many others....

[5oletrader] 13/5/2020 10:11

Pesky MM's will have to RAISE it if they want stock!

[thamestrader] 13/5/2020 09:45

Ooooh, this isn't very clever is it?

[troutisout] 13/5/2020 09:40

Well it has retraced and some more, however the drop seems ridiculous on the volume shown and seems to be more a fishing trip by MMs rather than down to volumes traded today. It would seem they want to replenish the stock they sold last week and on Monday...

[troutisout] 12/5/2020 18:06

Could we see a backtest of the breakout and also a closing of the gap before we see some real momentum up and away from this level?


free stock charts from uk.advfn.com

[lammylover] 12/5/2020 16:18

MMs keep walking the bid price down, even though there are more buys than sells. They are just trying to shake out the weaker hands around 57-62p and acquire more shares at rock bottom prices. Share price will motor up eventually, once this source of cheap shares dries up and they can then walk it up to 70p and beyond to generate bigger volumes and commission. Rich

[troutisout] 12/5/2020 07:58

I think the MMs have had lots of stock sold back to them over the past 3 weeks, when that is bought up, then the price will move up on further buying.

[lammylover] 12/5/2020 07:33

Agree about the chunky buys - the question is, who is offloading them? Could do with a bit of clarity here if an II is reducing their position and hopefully once they've declared, the price will start to rise to 70p+, where they should be IMO. Rich

[troutisout] 11/5/2020 19:25

Nice chunky buy again reported after close, along with Thursday's, looks like some are adding decent sized positions in IHC.

[hastings] 10/5/2020 08:40

We have already had 2020 numbers with adjusted EPS of 3.7p. For year in progress (2021) the most recent broker forecast is for adj EPS of 4.2p, although given the strong start, the likelihood is for an upgrade moving forward. Excellent growth prospects here, particularly with own brands fast approaching 50% of revenue.

[dan_the_epic] 09/5/2020 20:25

adjusted earnings per share last year was 3.62 but that was on a share count lower than today. In todays share count its 3.21. Grow that by 15% over the whole of this year so we dont include the ventilator one offs and we are at 3.69 for 2020. normal pe of 17.6 on 2020 aint cheap at all when so much of revenue is third party distributed product

[troutisout] 07/5/2020 00:18

Hi Hastings,
Thank you for your report on IHC, the GDR placing RNS had a section on the AIHL test, this was the last paragraph,

"On 24 April 2020, genedrive announced that it had entered into a distribution agreement with Inspiration Healthcare Group plc for the distribution of genedrive's AIHL test in the UK and Ireland. The Directors estimate the UK and global markets for this test to be worth up to £3.5 million and £35 million per year, respectively, to genedrive based on a price of £2,000 per Genedrive® unit and £35 per test"

What in your view would be the margin for IHC to distribute this test? It has been stressed by all parties that it is IHC's contacts and experts that will be used to try and promote this to become standard of care and in recent interview NC mentioned trying to get NICE to recommend it as such. So surely more than just a run of the mill distributor, would that mena higher margin?

[shauney2] 06/5/2020 12:36

Hastings,thanks for posting.

[cockerhoop] 06/5/2020 12:33

Geovest,

As vprt suggested I had already taken vio subcontracted revenue into account using the proforma revenue from Note 12 Business Combinations in the 2020 Annual Report.

[hastings] 06/5/2020 11:58

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.

[cockerhoop] 06/5/2020 11:28

Regards acquisitive/organic growth I estimate that 340k was from Vio and 750k was organic.

Assumptions
2020Q1 Total revenue H1 £8.1m/2 = £4.05m x 1.27 = £5.14m rev for Q121

Vio external rev £1.127m in FY2020 say £1.35m/4 = £340k Q121

Organic therefore £1.09m - £340k = £750k

[geovest] 06/5/2020 10:37

Thanks Hastings. Well balanced sensible review.

[hastings] 06/5/2020 10:08

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.

[lammylover] 06/5/2020 09:58

Good RNS, but not great RNS. Why oh why, can't they start with we are PLEASED to announce Q1 revenue up 27%? Other companies believing that they are undervalued (which I believe IHC is significantly) would have really sold this uplift! And this is before the additional £5m order (recently fulfilled) for ventillators for the NHS. Good company, still cheap IMO at 65p. Got to be worth 70p+ now and probably 90-100p by the end of year. Rich