Inspiration Healthcare Share Discussion Threads

[gopher] 09/10/2023 11:13

Latest investors meet presentation was positive overall. Financials slowly improving and emphasis on sales opportunities including dip into us market. Little interest in the company but continued share price decline looks unwarranted.

[lindowcross] 21/9/2023 15:12

From memory when I visited the company prior to covid and way before the SLE acquisition the directors explained they designed their own products but sub-contracted the manufacturing to a company in Austria. I agree it's possible they are now suffering from growing pains post the SLE acquisition and from dealing with the move to new premises.

[mtioc] 04/9/2023 09:55

Just catching up. I have owned this for a while.

This is a poor, early and big miss of a self-selected target. I have not seen Liberum note, but crudely appears to be a £3m revenue miss at a GM of 48%, so c. £1.5m profit hit, but seems to be £1.2m in broker's estimate.

IHC has just appointed new brokers and PR advisers to generate institutional interest that could include supporting acquisitions. The one thing they could not afford to do was “miss their numbers”.

I think there are some fundamental problems. Before the SLE acquisition, the group was a distributor of others’ products into the UK and Eire market. The acquisition added the complexity of manufacturing and worldwide distribution. It seems this has been too much for the management team: lack of controls led to a working capital cash suck (that is slowly unwinding under an interim and now a new CFO); they overspent (£1-2m?) on the new facility that has numerous vanity features, and their reporting/forecasting is awry. Initially, I thought the lack of transparency was due to confidentiality concerns, but increasingly I suspect they do not understand their profit and cash cycle by product line. I don't think they are ready to make further acquisitions until they have proved the previous ones and sorted the core.

There needs to be change. The chair has been involved since 2001 and since the float in 2015. A new, possibly exec chair, with Danagher/GE sector/ops experience should come in. That chair should have a wide remit to review the strategy and team competency. Four non-execs is probably at least one too many for a company this size and, given the finance issues, the finance related NED should also step down. That should allow the appointment to be cost neutral. I wonder how active the institutions led by BGF will be - it is very small.

I still think there is value in IHC’s position in neonatal distribution and equipment. On the equipment side, SLE’s automated oxygen control algorithms and equipment appear quite unique. The upside is US approval for its system. Even if that does not happen, the business should be cash generative and I suspect trade or PE would pay more than the year end EV (where I expect the working capital to swing the other way to turn net debt into a cash position).

I will hold for a while longer.

[swerves1] 01/9/2023 08:39

Sub 40 before I'd be interested

[lammylover] 31/8/2023 16:19

Swerves - assuming you are looking to buy in, hence hanging round and posting here.
What price are you looking to buy in? Sub 40p??

[swerves1] 31/8/2023 15:43

A big dip today as I suspected. They will struggle to get any new investors for a while after this

[lammylover] 31/8/2023 12:32

tax will be offset, one way or another. Bottom line is its still a profitable business selling non discretionary items.

[pireric] 31/8/2023 12:16

Lammy - think you need to tax that PBT before you do a P/E calc...

Eric

[lammylover] 31/8/2023 11:12

Edit - should say NOT stupidly high for what are in essence essential items

[lammylover] 31/8/2023 11:10

68.2m shares at 47p/share is mkt cap of £32m plus £2.1m debt. If IHC make £2.4m PBT this year then p/e at 14.2x. Slightly higher than I would like, but stupidly high for what are in essence, essential items for NHS etc.
Share price may fall back a bit more, but margins improving on core products (neo natal baby equipment and ventillators) should ensure H2 is solid. A couple of decent sized contract wins will soon engage PIs again to push this north of 50p.
Paul Hill in Stockopedia rated this a buy on 26.6.23 with a target of 84p. I'm at average 48.4p and happy to sit on these for next year for recovery in growth and share price.

[gopher] 31/8/2023 10:26

I was holding for a recovery in share price here having bought in at much higher level. Overall not a great update as would like to see revenue growing to re establish credentials as a growth company now relocation disruption is behind them.

[swerves1] 31/8/2023 08:45

Yes this has further to drop

[lammylover] 31/8/2023 07:48

Assume you guys are all looking for cheap shares here, hence negative comments? Looks like PIs are sitting on hands here, though - no flurry of selling activity. Shares cheap enough already IMO and should rise into H2 results if margins continue to improve and IHC can deliver some contract wins.

[cockerhoop] 31/8/2023 07:34

Liberum have £2.4m pbt reduced from £3.6m for FY24 so a 34% miss. They've also shaved FY25 by 16%.

Edit: repeating Hastings post above -soz

[hastings] 31/8/2023 07:27

Broker note issued this morning

[lammylover] 31/8/2023 06:53

Where's the PBT figures? I didn't see any in the update. Rev flat, margins improved. Debt reduced by £1.7m.

[swerves1] 31/8/2023 06:37

Not good. Expect the share price will take a big dip today

[hastings] 31/8/2023 06:36

Been keeping an eye on this ex holding, but a big drop in forecast PBT from £3.6m to £2.4m.

[scepticalinvestor] 31/8/2023 06:11

Profit warning

[melloteam] 26/6/2023 09:55

Just to let shareholders and prospective investors know that Inspiration Healthcare will be presenting on the MelloMonday webinar at 5pm today, Monday 26th June 2023.

5.00 pm Mello welcome followed by Paul Hill – Outlook for markets & equities ‘quick fire’ Q&A between Paul & David
5.30 pm Company presentation from Inspiration Healthcare
6.00 pm Megan Boxall – Growth stocks and how to pick the multibaggers
6.15 pm Company presentation from Hercules Site Services
6.45 pm Company presentation by Public Policy Holding Company
7.25 pm Mello BASH with Bruce Packard covering OMG & Graham Neary covering BPM



There will be over 500 investors attending and these are very popular shows with company presentations, interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

[davidosh] 25/6/2023 15:31

Neil Campbell will be doing a presentation at 5.30pm tomorrow evening on the Mello Monday show.Here is the full programme...

5.00 pm Mello welcome followed by Paul Hill – Outlook for markets & equities ‘quick fire’ Q&A between Paul & David
5.30 pm Company presentation from Inspiration Healthcare
6.00 pm Megan Boxall – Growth stocks and how to pick the multibaggers
6.15 pm Company presentation from Hercules Site Services
6.45 pm Company presentation by Public Policy Holding Company
7.25 pm Mello BASH with Bruce Packard covering OMG & Graham Neary covering BPM

If you would like to join for free as a shareholder just use the code SHR100

[lammylover] 23/6/2023 06:54

AGM on Tues 27 June - hopefully get a trading statement prior to meeting in RNS

[gopher] 20/6/2023 22:02

I have just seen the results presentation and interesting there has been a bit of positive share price movement since the Times article below.I wouldn't call them a dicey as there is clearly some decent IP and regulatory approval acts as a barrier to entry. There are obviously some big US medical devices out there and they are a small neonatal specialist, this risk is difficult to judge particularly as US sales are insignificant but this specialism is their USP according to CEO.They have a new FD who I thought put in a solid performance on the presentation and it's difficult to predict how 2023/4 results will turn out given the upheavals of recent years. Some positive noises however.