Inspiration Healthcare Share Discussion Threads

[babbler] 14/6/2024 10:38

Guess you missed out on quite a rise now. What do these buyers know that you don't?

[lindowcross] 13/6/2024 13:36

Another buy from Mennen Medical, now up to 6%.

[gopher] 07/6/2024 13:10

The next update will be the AGM statement at the end of the month. I wouldn't want to buy before that is released as likely to be a kitchen sink job.

[mtioc] 28/5/2024 16:08

To be fair to Roy Davis, his first "announcement" is suitably decisive. It will be interesting to see his first actions as interim CEO. I hope he gives it a go.

Also interesting re Mennen and Redworth. They do not seem like passive public market investors. I am sure they would like the option to acquire IHC cheaply. Much will depend on BGF and Berenberg. If they have had enough, I suspect we will all be put out of our misery at c. 30p.

[lammylover] 28/5/2024 07:51

RNS - Campbell CEO steps down with immediate effect to be replaced by Roy Davis who becomes Exec Chair and Interim CEO.
Good news, Davis has strong track record and should be able to turn things round here.

[lammylover] 28/5/2024 07:50

RNS - Campbell CEO steps down with immediate effect to be replaced by Roy Davis who becomes Exec Chair and Interim CEO.
Good news, Davis has strong track record and should be able to turn things round here.

[techno20] 20/5/2024 08:39

And another purchase. Interesting portfolio of businesses, heavily healthcare related. IHC would fit well.

[lindowcross] 20/5/2024 06:20

I note Mennen Medical recently upped its stake in IHC to around 5%. I wonder why?

It is part of Redworth Capital Group

Redworth Capital is a multinational investment house with offices in Philadelphia (USA), Tel Aviv (ISR) and London (UK), engaged in diversified business segments: Medical Devices and Technologies, Real Estate and Entertainment

[lammylover] 02/5/2024 08:42

From what I can see on twitter, its business as usual at IHC:


1/5/24
2 day training session in London, Home Care Team getting info on latest advances in healthcare tech.

30/4/24 Advertising for Senior Business Development Manager position.

29/4/24 Attending conference in B/ham


Hopefully the delayed contract is just a blip, and progress will be made this year..

[gopher] 01/5/2024 09:55

Gervias seems a glass half full chap but if they don’t know what chance have we, luckily sold out in January. It is certainly difficult to know what’s going on with sales here. It’s a technical market so barriers to entry should suit the company.

[mtioc] 01/5/2024 09:48

Issue is management competence. Used to run UK distributor, but cannot cope with international OEM.

See my posts above. ME is a naive fiasco. Break even business with Board full of box tickers. Need focused turnaround skills and new CEO.

I will hold my small residual position. I do think they have tech, particularly software, that would be attractive to other players. However, I am not sure that will create value for ordinary shareholders.

This could go lower and require a rights issue to resolve cash issue, partly caused by millions in finished goods they can't ship!

[lammylover] 01/5/2024 09:10

I've dropped the PR team an email, suggesting that the board show some support by buying at this level.
At 18p, market capex is £12.3m.
Massive upside here for someone who can turn this business around.
Takeover target?????
Surely its not that hard to sell medical devices to global health care companies / NHS etc for what are non discretionary supplies for neo natal babies etc?

[kemche] 01/5/2024 08:46

Well that is hardly an inspirational update.

[davidosh] 01/5/2024 08:46

I still have my holding from the old days when it was Inditherm and bought by Inspiration. This has now fallen nearly 90% from the Covid peak which is rather depressing. Urgent resuscitation needed in more ways than one !

[cockerhoop] 01/5/2024 08:36

I'm certainly glad I did :-)

[playful] 01/5/2024 08:22

Mark Abrahams will be glad he walked away.

[lammylover] 01/5/2024 08:08

Market maker LSE keeping share trades in Auction, without price monitoring extension...what's that about???

[vikeshm1] 01/5/2024 07:58

Paul Hill and Gervais Williams on this three months ago
Just shows how wrong experts can b.



from 40.00

[lammylover] 01/5/2024 07:31

Got to be a takeover target here surely? Clearly Board need a complete change.
Business focused on non discretionary healthcare spend.....surely it can't be this hard?

[nchanning] 01/5/2024 06:42

You'd think it was time for the CEO to gracefully depart and let someone else have a go now ....

[mtioc] 02/2/2024 10:26

I have managed to read the broker's note and it is more alarming than reassuring.

I assume the analyst reflects the company's current expectations. This raises the question of why not issue a trading up-date to all shareholders rather than release material news via a broker report that is only accessible to institutions and subscribers.

It appears that revenue will be £6.5m off (£37m vs forecast £43.5m), EBITDA £1.9m vs £5m, EBITA £0.5 vs £3.5m and net debt -£6.4m versus - £1.1m.

The explanation is not reassuring. Apparently, the company has produced £3.5m of goods for a Middle East customer but the "final contract details are not quite in place". The associated margin is 50%. Normally, a company would only produce to a "firm" order either via a PO or contract. However, the company believes the order should be delivered this year.

In the rush to produce this large "undeliverable" order, they appear have disrupted the "manufacturing schedule" to the tune of £1.3m again at 50%. The new facility is supposed to be able to produce £100m, but is spluttering at a third of that.

The last £1.3m just "did not materialise".

The business is barely breakeven and cashflow negative and we currently have 5 non execs including the new chair designate. Given the repeated screw ups, I feel the shareholders would welcome one "ars* kicker" rather than five "box tickers".

The new chair appears to have joined a few days before a major profit warning and surprise covenant breach. Hopefully, recent events will give Roy Davis the impetus and mandate to drive change quickly. Mr Davis, who is very senior, appears to be accumulating several non executive roles. Let's hope he has the energy, time and drive to deliver the requisite change. I fear for the worst, but will await Mr Davis' first public pronouncement or appearance with interest.

The analyst report appears rushed and he waffles on about "repeated bad luck", which is possibly City code for mismanagement. He must be ruing "winning" the mandate from Canaccord!

[mtioc] 01/2/2024 17:49

trmum. Thanks. Interesting re Porsches. Fingers crossed.

[trmum] 01/2/2024 15:32

Thanks MTIOC, having stalked this board for a while now I can only offer the observation that when I found out there were nice new Porsches in the car park at IHC, I assumed the good times were about to role.

That now seems a bit tone deaf by Campbell et al. And my assumptions also terrible.

Old chair seemed happy with everything, as you say, hope new chair evaluates decision making over past few years, not excuses ("error-prone"), and takes some decisive action.

[gopher] 01/2/2024 12:37

Thanks for clarifying my thoughts here.Holders want this to turn into a reliable small cap growth stock, they seem to have the markets and margins but do they have the management.

[mtioc] 01/2/2024 07:17

Again, this is worryingly poor with the caveat that I cannot read the broker note that may have more explanation.

The business still seems to have lost control of its cash. It should have been de-gearing following the working capital fiasco at the last year end. The business has spent cash (it apparently did not have) on a US acquisition only to breach a covenant a few weeks later. The business seems to be surprised by the cash position otherwise it would have got the waiver before the year end. To have a cash covenant breach at the year end is not good. The year end accounts will show all bank debt as due and payable immediately. Even if they get the waiver after the event, I think it will just be a note to accounts. This raises real questions re the CFO and financial forecasting/controls.

I am not sure I believe the explanation. I doubt one customer or order is big enough to account for all of this. As I have said before, I don't think the current team, who came from running a UK distributor, are capable of running a complex manufacturer that exports across the globe. In my view, they overspent on the Croydon facility (were the pollen free palm trees essential and a good use of shareholder capital?). The recurring capitalistion of labour costs to development suggests actual cash earnings are lower than presented profits. Despite previous warnings, the control environment is demonstrably poor.

That said, I still believe the technology, particularly with a US approval, is worth more to a trade buyer than the current market cap.

I will hold to see if the new chair does not "waste" this crisis. The chair needs to focus the basics of controls, costs and cash. I don't think anyone, and new institutions in particular, will back the current error-prone executive management team. The chair will need to reflect on changes that may be required to that team and whether the expensive non executive heavy Board is delivering value.

If there is not a reaction in the first quarter of this year, I suspect I will depart.