Inspiration Healthcare sees revenue fall in FY2024, announces equity raise

Medtech firm Inspiration Healthcare Group has posted results for the year to end-January, which revealed reduced revenue and gross profit but improved gross margins.

The company said it was well placed for long-term growth, however, and announced an equity raise of £2.5 million (gross), with an additional retail offer of up to £0.5 million.

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In the year to January 31, the company said its gross profit had reduced by 1.1% to £17.9 million compared to the year earlier, while gross margin improved to 47.5%, compared to 43.9% in full year 2023. Revenue came in at £37.6 million, down from £41.2 million in the year-earlier period.

"Inspiration Healthcare has a solid portfolio of best-in-class, life-saving neonatal technologies and infusion products that are addressing a critical need," said Roy Davis, executive chairman and Interim CEO in a statement.

"Over the course of the year, we have seen underlying growth in our core neonatal and infusion businesses due to increased demand.

"The acquisition of Airon in January 2024 provides us with an established platform to advance our commercial strategy in North America, which will be a key medium-term growth driver. Despite challenging market conditions, the group has a number of significant market opportunities and is well placed to deliver long-term sustainable growth."

Davis said the equity raise would provide the company with additional working capital, a strengthened balance sheet and liquidity headroom.

Among the firm's operational highlights in the year was the launch of SLE1500 for non-invasive ventilation of neonatal patients, and SLE6000N a non-invasive version of the flagship product.

"While there have been challenges beyond our control presented by volatility in the international markets we serve, we continue to be robustly positioned in a stable global long term growth sector with a best-in-class product portfolio," the company said.

"While revenues are expected to be second half weighted in FY25, current trading is in line with management's expectations. We are grateful to our shareholders for their continuing support, and we look forward to a successful FY25 and beyond," it added.

The company operates in the UK from its Manufacturing and Technology Centre in Croydon, South London and from its facility in Hailsham, East Sussex, and in the USA from its facility in Melbourne, Florida.