- Flat first-half revenue of £20.4mn
- Gross margin up from 45.1 to 48.6 per cent
- Borrowings slashed
- Pre-tax profit halves to £0.7mn but strong growth forecast in second half
Crawley-based Inspiration Healthcare (IHC:36p) is making progress in reducing debt and boosting gross margin. A return to revenue and profit growth is now forecast from the second half to 31 January 2024 as headwinds dissipate.
The medical technology group has a strong focus on the high-growth neonatal intensive care market. Although first-half revenue of £20.4mn was flat, the headline numbers mask underlying growth. A 4 per cent growth in neonatal revenue to £16.1mn doesn’t tell the whole story as one of the group’s partners discontinued a product last year, and its replacement should have gained European CE marking under the Medical Device Regulations early in 2023. Regulatory delays, longer lead times for delivery and production schedule issues mean it is now expected in the first half of 2024.