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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Inspiration Healthcare Group Plc | LSE:IHC | London | Ordinary Share | GB00BXDZL105 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 31.50 | 31.00 | 32.00 | 31.50 | 31.50 | 31.50 | 539 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Home Health Care Services | 41.23M | 272k | 0.0040 | 78.75 | 21.48M |
From Apr 2019 to Apr 2024
TIDMIHC
RNS Number : 5677C
Inspiration Healthcare Group PLC
02 October 2018
2 October 2018
Inspiration Healthcare Group plc
("Inspiration Healthcare" or the "Company")
Interim Results
Inspiration Healthcare Group plc (AIM: IHC), the global medical device company, today announces its unaudited interim results for the six months ended 31 July 2018 ("H1 2018/19").
Highlights:
-- Revenue up 3% to GBP7.4m in line with our expectations (H1 2017/18: GBP7.2m) -- Revenue grew both domestically (2%) and internationally (4%) -- First sales recorded of redeveloped Patient Warming System -- First sales of new Unique+ CFM and LifeStart -- EBITDA up by 9% to GBP0.7m (H1 2017/18: GBP0.6m) -- Operating profit GBP0.5m (H1 2017/18: GBP0.5m) -- Cash remains strong ending the half year at GBP2.4m; a net inflow of GBP0.3m in the period -- Outlook unchanged with growth expected in H2
Neil Campbell, Chief Executive Officer, said today:
"From the difficult start to the year caused by the delays in receiving the necessary approvals for our own developed products, I am pleased to report that we are getting back on track with the first sales of the newly developed patient warming system achieved and expect that these sales will increase as we obtain further registrations in other markets.
Despite the slower than expected start of our Own Branded Products, I am also pleased that we have increased revenues domestically and internationally and achieved a 9% increase in EBITDA largely through the prudent management of resources. To some degree, this shows the resilience of the Group's product mix and operating structure and its ability to adapt to external conditions which are not in its control.
We continue have a strong cash position and are well placed for the rest of the year."
Enquiries:
Hot Features
Premium
Inspiration Healthcare Group Tel: 01455 840555
plc
Neil Campbell, Chief Executive
Officer
Mike Briant, Chief Financial
Officer
Nominated Adviser & Broker Tel: 0207 397 8900
Cenkos Securities plc
Mark Connelly / Cameron MacRitchie
(NOMAD)
-------------------
Cadogan PR Tel: 07771 713608
Alex Walters
-------------------
Investor Evening
The Directors of Inspiration Healthcare Group plc will be hosting an evening for investors on Thursday 4 October 2018 starting at 4.30pm in a private room downstairs at Balls Brothers, 10-11 Austin Friars, London, EC2N. To register for the event and to attend the evening, please contact: Alex Walters on 07771713608 or by email at alex.walters@cadoganpr.com
About Inspiration Healthcare
Inspiration Healthcare (AIM: IHC) is a global supplier of medical technology for critical care, operating theatre and other medical applications. The Company provides high quality innovative products to patients and caregivers around the world that help to improve patient outcomes and efficiencies of healthcare organisations with patient focused customer service and technical support.
The Company's own brand of critical care solutions span non-invasive respiratory management, thermoregulation and diagnostics, and patient warming for newborns through to adults in intensive care and the operating theatre, whilst the distribution business supplies solutions to support specialised surgical procedures and infusion therapies.
Present in over 50 countries worldwide, Inspiration Healthcare's success has been built on continuous innovation, excellent customer service and an inherent commitment to improving the quality of life of patients, working in close collaboration with key opinion leaders and stakeholders in the clinical and medical community across the globe.
Further information on Inspiration Healthcare can be seen at www.inspiration-healthcare.com
Chairman's Statement
I am pleased to confirm that the Group continued to trade in line with our expectations as set out in our AGM Statement of 15 June 2018. Revenue for the first half of the financial year was up 3% on the equivalent period last year.
As we announced in our AGM Statement our plans to launch new products in the current financial year have been frustrated by the significant delays we experienced in obtaining an updated Quality Management System certificate and a CE Mark approval for our redeveloped Patient Warming System from our Notified Body. Shortly before the AGM, and much later than we expected, we received these two certificates and are now pleased to report that we have completed the first sales of the redeveloped Patient Warming System in July with further sales expected in the second half.
The delay in obtaining the necessary approvals meant that product registrations commenced later than planned and this had the effect of reducing the proportion of our Own Branded Product revenues. However, this was offset by stronger revenues from our Home Healthcare sector (up 17%), meaning the proportion of revenue generated from Distributed Products increased to 43% (FY 2017/18: 42%).
This demonstrates the Group's ability to balance revenues by focusing on different sectors of the business to adapt to the external conditions. We expect the mix to move back towards Own Branded Products in the second half and to see a gradual margin improvement. Additionally, we expect to realise the benefits from last year's investment in management and regulatory resources.
Financial Review
Revenue for the six months to 31 July 2018 was GBP7.4 million (2017/18: GBP7.2 million), an increase of 3% over the equivalent period for the previous year.
EBITDA improved by 9% year on year to GBP0.7m as a result of growing gross profit and limiting the increase in cash-based overheads. Operating Profit for the period at GBP0.5m was in line with the same period last year.
Revenue from our Own Brand Products at GBP3.2m was lower than the first half of last year (H12017/18: GBP3.5m) due to delayed product releases leading to the proportion of revenue generated from these products reducing marginally to 44% of total revenue (FY2017/18: 45%). Revenue from our Distributed Products was up by 20% to GBP3.2m, with particularly good sales in Home Healthcare.
Despite the increase in mix towards Distributor Product revenue, gross margin at 45% was in line with H1 2017/18.
Underlying cash-based overhead increases were limited to 2.1% with the full impact of last year's investment in management and resources replacing the GBP0.1m one-time regulatory costs incurred in H1 2017/18. Investment in R&D (combined capitalised and expensed) amounted to approximately 4.2% of revenue in the first half, lower than recent periods due to the time taken to achieve regulatory clearances. We expect total spend on R&D to increase in the second half.
Profit after tax for the six months to 31 July 2018 at GBP0.4m was slightly down on the same period last year due to a small increase in the tax charge arising from lower relief on the reduced R&D spend referred to above.
The resulting diluted earnings per share was 1.4p for H1 2018/19 (H1 2017/18: 1.5p).
Cash at 31 July 2018 was GBP2.4 million, a net inflow of GBP0.3m. Trade receivables and trade payables are higher due a back-to-back supply facility provided to a third-party medical device company.
Operational Review
Both Domestic and International revenue grew, by 2% and 4% respectively. With the launch of our redeveloped Patient Warming System we can push ahead to establishing strong relationships with our network of international distributors in this field, whilst progressing the registration of this device for the US market which we expect to achieve during the next financial year.
We have continued to look for novel products to distribute and are pleased to have launched the ClampCut device from Price Invena of Denmark. The ClampCut is a single use device for cutting and clamping the umbilical cord and compliments Inspiration's own products, LifeStart and Inspire rPAP, which are used in the delivery room.
As with many companies operating in Europe, we continue to monitor the potential impact of Brexit. Clearly uncertainty remains about the future relationship between the UK and the EU and we will continue to explore all options to mitigate the potential effect that this may have on trading.
We are pleased to announce that Nigel Weston has joined the company as Head of Operations and a member of our senior management team, showing our commitment to continue to invest in our people and resources to underpin our growth strategy. Nigel brings a wealth of supply chain experience from both within the healthcare sector and other industries and will head up our operations function at our Earl Shilton facility. Nigel will report to Neil Campbell, CEO.
Market Review
Due to the factors outlined above our Critical Care revenue was flat year on year at GBP5.1m and Operating Theatre revenue was down 3% to GBP0.8m. However, performance in the Home Healthcare sector was able to offset these impacts reporting growth of 17% to GBP1.5m.
Investment in Neuroprotexeon
In June it was announced by Neuroprotexeon Limited ("NPXe"), a company in which Inspiration Healthcare holds 10% of the current issued share capital (or 8.6% diluted for options in existence at the time of the announcement), that NPXe confirmed that it was seeking to complete an IPO on AIM in the second half of 2018. We continue to monitor the situation with interest and will update shareholders accordingly.
Outlook
The last eighteen months have been characterised by industry wide delays in regulatory approvals. As previously indicated, we are just starting to turn these additional compliance requirements to our advantage as sales of newly approved products gather momentum.
As we enter the second half, we are encouraged by the take up of these new products and expect them to create a basis for growth over the next two years. This growth has been anticipated and we continue to expect the year's performance to be second half weighted. Therefore our overall expectations for the financial year remain unchanged.
MARK ABRAHAMS Chairman
2 October 2018
Unaudited Consolidated Income Statement
For the six months ended 31 July 2018
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
Notes GBP'000 GBP'000 GBP'000
------------------------------------ ------ ---------------- --------------- -----------------
Revenue 7,391 7,185 15,495
Cost of sales (4,072) (3,983) (8,709)
Gross profit 3,319 3,202 6,786
Operating expenses (2,817) (2,688) (5,582)
Operating profit 502 514 1,204
Finance income 2 - -
Finance costs - (2) (2)
Profit before tax 504 512 1,202
Income tax (expense)/income 4 (70) (51) 21
Profit attributable to the owners
of the parent company 434 461 1,223
Earnings per share, attributable
to owners of the parent company
Basic expressed in pence per share 6 1.42p 1.50p 3.99p
Diluted expressed in pence per
share 6 1.40p 1.50p 3.98p
------------------------------------ ------ ---------------- --------------- -----------------
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 31 July 2018
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
Notes GBP'000 GBP'000 GBP'000
----------------------------------- ------- ---------- ---------- -----------------
Profit for the year 434 461 1,223
Other comprehensive expense
Items that may be reclassified
to profit or loss
Cash flow hedges 3 - (3)
Total other comprehensive expense
for the year 3 - (3)
-------------------------------------------- ---------- ---------- -----------------
Total comprehensive income for
the year 437 461 1,220
-------------------------------------------- ---------- ---------- -----------------
Unaudited Consolidated Statement of Financial Position
As at 31 July 2018
(Registered Number: 03587944)
Unaudited Unaudited Audited
As at As at As at
31-Jul 31-Jul 31-Jan
2018 2017 2018
Notes GBP'000 GBP'000 GBP'000
-------------------------------------------------------------------------------- --------------------- -------------------- ----------------------
ASSETS
Non-current assets
Intangible assets 1,306 765 1,209
Property, plant and equipment 407 491 461
Investments 111 106 111
---------------------
1,824 1,362 1,781
-------------------------------------------------------------------------------- --------------------- -------------------- ----------------------
Current assets
Inventories 769 829 560
Trade and other receivables 3,161 2,082 3,066
Cash and cash equivalents 7 2,389 1,792 2,086
-------------------------------------------------------------------------------- --------------------- -------------------- ----------------------
6,319 4,703 5,712
Total assets 8,143 6,065 7,493
-------------------------------------------------------------------------------- --------------------- -------------------- ----------------------
Liabilities
Current liabilities
Trade and other payables (2,694) (1,942) (2,686)
Derivative financial liability - - (3)
Deferred income (507) (433) (328)
Current tax liability (71) (79) (70)
(3,272) (2,454) (3,087)
Non-current liabilities
Deferred income - (12) (7)
Deferred tax liability (34) (13) (34)
-------------------------------------------------------------------------------- --------------------- -------------------- ------------------------
(34) (25) (41)
-------------------------------------------------------------------------------- --------------------- -------------------- ------------------------
Total liabilities (3,306) (2,479) (3,128)
-------------------------------------------------------------------------------- --------------------- -------------------- ------------------------
Net assets 4,837 3,586 4,365
-------------------------------------------------------------------------------- --------------------- -------------------- ----------------------
Shareholders' equity
Called up share capital 3,067 3,067 3,067
Merger reserve - 391 -
Reverse acquisition reserve (16,164) (16,164) (16,164)
Share based payment reserve 55 - 20
Other reserves - - (3)
Accumulated profit 17,879 16,292 17,445
Total equity attributable to owners
of the parent company 4,837 3,586 4,365 -------------------------------------------------------------------------------- --------------------- -------------------- ----------------------
Unaudited Consolidated Statement of Changes in Shareholders' Equity
For the six months ended 31 July 2018
Share
Called Share Reverse based
up Share premium Merger acquisition payment Other Retained Total
Capital account reserve reserve reserve reserves earnings equity
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
At 31 January 2017 3,067 9,929 4,600 (16,164) - - 1,693 3,125
Profit for the period
1 February 2017
to 31 July 2017 - - - - - - 461 461
Capital reduction
exercise:
* Issue of B Shares to Capitalise Merger Reserve 4,209 - (4,209) - - - - -
* Cancellation of B Shares (4,209) - - - - - 4,209 -
* Cancellation of Share Premium Account - (9,929) - - - - 9,929 -
At 31 July 2017 3,067 - 391 (16,164) - - 16,292 3,586
Profit for the period
1 August 2017 to
31 January 2018 - - - - - - 762 762
Other comprehensive
income - - - - - (3) - (3)
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Total comprehensive
income/(expense)
for the period - - - - - (3) 762 759
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Transactions with
owners
Employee share scheme
expense - - - - 20 - - 20
Capital reduction
exercise:
* Issue of B Shares to Capitalise Merger Reserve 391 - (391) - - - - -
* Cancellation of B Shares (391) - - - - - 391 -
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Total transactions
with owners - - (391) - 20 - 391 20
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
At 31 January 2018 3,067 - - (16,164) 20 (3) 17,445 4,365
Profit for the period
1 February 2018
to 31 July 2018 - - - - - - 434 434
Other comprehensive
income - - - - - 3 - 3
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Total comprehensive
income for the period - - - - - 3 434 437
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Transactions with
owners
Employee share scheme
expense - - - - 35 - - 35
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Total transactions
with owners - - - - 35 - - 35
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
At 31 July 2018 3,067 - - (16,164) 55 - 17,879 4,837
------------------------------------------------------ ---------- ----------- --------- ------------ --------- ---------- ------------------- ------------
Unaudited Consolidated Statements of Cash flows
For the six months ended 31 July 2018
Unaudited Unaudited Audited
6 months 6 months Year
ended Ended ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
Notes GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 8 571 162 919
Interest paid - (2) (2)
Taxation received - - 161
Taxation paid (69) (50) (126)
-------------- --------------- ------------------
Net cash inflow from operating activities 502 110 952
-------------------------------------------- -------------- --------------- ------------------
Cash flow from investing activities
Interest received 2 - -
Purchase of property, plant and equipment (23) (198) (254)
Purchase of intangible assets (17) (14) (68)
Capitalised development costs (161) (255) (688)
Acquisition of investment - - (5)
Net cash used in investing activities (199) (467) (1,015)
-------------------------------------------- -------------- --------------- ------------------
Cash flow from financing activities
Finance leases - (16) (16)
Net cash used in financing activities - (16) (16)
-------------------------------------------- -------------- --------------- ------------------
Net increase / (decrease) in cash and
cash equivalents 303 (373) (79)
Cash and cash equivalents at the beginning
of the period 2,086 2,165 2,165
Cash and cash equivalents at the end
of the period 2,389 1,792 2,086
-------------------------------------------- -------------- --------------- ------------------
Notes to the Unaudited Interim Financial Statements
For the six months ended 31 July 2018
1. Basis of Preparation
This condensed consolidated interim financial information for the six months ended 31 July 2018 have been prepared in accordance with AIM rule 18 in relation to half year reports. This information should be read in conjunction with the annual financial statements for the year ended 31 January 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
2. Going concern basis
The Group meets its day-to-day working capital requirements through its cash resources. After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated interim financial statements.
3. Interim financial information
The interim financial information for the period ended 31 July 2018 is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The interim financial information for the period ended 31 July 2017 is also unaudited. The audited accounts for the year ended 31 January 2018 for Inspiration Healthcare Group plc were approved by its Board of Directors on 23 April 2018 and have been delivered to the Registrar of Companies with an unqualified audit report.
The Company's annual report and financial statements for the year ended 31 January 2018 were prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union, International Financial Reporting Interpretations Committee (IFRIC) interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The standards used are those published by the International Accounting Standards Board (IASB) and endorsed by the EU at the time of preparing those statements.
The following standards have been adopted for the first time in the current financial year.
IFRS 9 Financial Instruments
IFRS 9 (effective 1 January 2018) addresses the classification, measurement and recognition of financial assets and liabilities and replaces IAS 39. The implementation of IFRS 9 has not had a material impact on the interim financial statements.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 (effective 1 January 2018) deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The implementation of IFRS 15 has not had a material impact on the interim financial statements.
4. Taxation
A provision has been made for corporation tax at the rate of 19% on the estimated taxable profits for the period.
5. Dividends Paid
There are no immediate plans to pay dividends for Inspiration Healthcare Group plc.
6. Earnings per ordinary share
Basic earnings per share for the period is calculated by dividing the profit attributable to ordinary shareholders for the year after tax by the weighted average number of shares in issue.
Basic diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares.
The calculation of earnings per ordinary share is based on a profit of GBP434k (31 July 2017: GBP461k and 31 January 2018: 1,223k)
Notes to the Unaudited Interim Financial Statements (continued)
For the six months ended 31 July 2018
6. Earnings per ordinary share (continued)
The weighted average number of shares in issue and the diluted weighted average number of shares in issue were as follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended Ended Ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
-------------------------------------------- ----------- ----------- -----------
Shares
Weighted average number of ordinary
shares in issue for the purpose of
basic earnings per share 30,667,548 30,667,548 30,667,548
Dilutive effect of potential Ordinary
shares:
Share options 260,338 - 66,449
-------------------------------------------- ----------- ----------- -----------
Diluted weighted number of shares in
issue for the purpose of diluted earnings
per share 30,927,886 30,667,548 30,733,997
-------------------------------------------- ----------- ----------- -----------
The number of share options for the year ended 31 January 2018 have been pro-rated for the time they have been in place.
The basic and diluted earnings per share are as follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended Ended Ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
pence pence pence
--------- ---------- ---------- --------
Basic 1.42 1.50 3.99
Diluted 1.40 1.50 3.98
--------- ---------- ---------- --------
7. Cash and cash equivalents
Cash and cash equivalents compromise solely of cash and cash in hand and held by the Group.
The carrying amounts of the Group's cash and cash equivalents are denominated in the following currencies:
Unaudited Unaudited Audited
6 months 6 months Year
ended Ended Ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
GBP'000 GBP'000 GBP'000
------------------------------------------- ---------- ---------- ---------
Pound Sterling 1,974 1,262 1,567
Euro 82 425 280
US Dollars 331 104 236
Japanese Yen 2 1 3
Net cash inflow from operating activities 2,389 1,792 2,086
------------------------------------------- ---------- ---------- ---------
Notes to the Unaudited Interim Financial Statements (continued)
For the six months ended 31 July 2018
8. Note to the Consolidated Statement of Cash flows
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
31-Jul 31-Jul 31-Jan
2018 2017 2018
GBP'000 GBP'000 GBP'000
Profit before taxation 504 512 1,202
Adjustments for:
Net finance (income) / costs (2) 2 2
Depreciation and amortisation 158 111 230
Employee share scheme expense 35 - 20
Loss on disposal of tangible asset - 1 10
(Increase) / decrease in inventories (209) (51) 218
(Increase) / decrease in trade and
other receivables (95) 409 (575)
Increase / (decrease) in trade and
other payables 8 (874) (130)
Increase / (decrease) in deferred income 172 52 (58)
----------- ---------- -----------------
Net cash inflow from operating activities 571 162 919
------------------------------------------- ----------- ---------- -----------------
9. Related party transactions
-- Investment in Neuroprotexeon Limited
The company has a holding of 10.0% (2017: 10.4%) of the issued ordinary share capital of Neuroprotexeon Limited (8.1% on a fully diluted basis taking into account share options and loan conversion rights of other investors). Neil Campbell resigned as a Non-Executive Director of Neuroprotexeon Limited on 21 June 2018.
-- Lease of Leicestershire facility
The Leicestershire facility at Earl Shilton is rented on an arms length basis from a self-invested pension plan controlled by Neil Campbell, Toby Foster, Simon Motley, Malcom Oxley and others. The lease was renewed on an arms length basis during April 2018.
-- Key management
Directors control 28% of the voting shares of the legal parent company
Registered Office:
2 Satellite Business Village
Fleming Way
Crawley RH10 9NE
Telephone: +44 (0) 1455 840555
Fax: +44 (0) 1455 841464
website www.Inspiration-healthcare.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR FSLFDFFASEDS
(END) Dow Jones Newswires
October 02, 2018 02:00 ET (06:00 GMT)
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