Optima Health (AIM:OPT) reported revenue of £120.6 million for the year ended 31 March, up 14.8% from £105.0 million, in line with market expectations.
The AIM-listed provider of technology-enabled corporate health and wellbeing services posted adjusted EBITDA of £20.1 million, 10% ahead of previous market forecasts, with margin held at 16.7%.
The year was dominated by the £100 million acquisition of PAM Healthcare, completed on 26 March, which the company called a transformational step toward becoming the leading occupational health provider across the UK and Republic of Ireland. Integration is delivering £2.1 million of annualised cost synergies as at 31 July, against a medium-term target of £5 million.
The deal pushed net debt (excluding leases) to £94.4 million at year-end, up from £2.2 million a year earlier, including a £30 million bridge loan. That bridge loan has since been repaid using proceeds from an underwritten open offer that raised gross proceeds of approximately £35.0 million.
New business wins totalled £10.8 million for the year, including a strategic partnership with Perkbox expected to generate around £6.5 million annually over five years, with a further £8.6 million won or at preferred-bidder stage since the period end.
Mobilisation of the UK Armed Forces Recruitment Service contract, worth up to £210 million over its initial seven-year term, remains on track for go-live in 2027.
"Optima's performance in FY26 further demonstrates our strong and consistent financial performance as we continue to deliver against our strategic objectives," said chief executive Jonathan Thomas.
The group also booked £4.7 million of other operating income following final settlement of a previously disclosed procurement matter.
Management reiterated medium-term targets of £200 million revenue and £40 million adjusted EBITDA, a 20% margin.
News Intelligence what this means for the company
Optima Health delivered revenue growth of 14.8% to £120.6 million and beat profit forecasts with adjusted EBITDA 10% ahead of expectations, while completing its £100 million PAM Healthcare acquisition on 26 March. The deal immediately swelled net debt to £94.4 million, but management has since repaid the £30 million bridge loan via a £35 million equity raise, and annualised cost synergies of £2.1 million as at 31 July are tracking toward a £5 million medium-term target, signalling early integration traction on what the company frames as a transformational step to become the leading UK and Ireland occupational health provider.
- The Armed Forces Recruitment Service contract (worth up to £210 million over seven years, go-live 2027) and the Perkbox partnership (£6.5 million annually over five years) anchor near-term revenue visibility, though neither has yet contributed materially to reported results.
- Net debt of £94.4 million at year-end represented a 42-fold increase from £2.2 million a year prior; the equity raise has reduced this burden but leaves the company leveraged relative to its current EBITDA run-rate, making execution on synergy targets and organic growth material to debt trajectory.
The company is tracking toward its medium-term targets of £200 million revenue and £40 million adjusted EBITDA (20% margin), but the PAM acquisition has materially altered the capital structure and execution risk profile. Investors now depend on synergy delivery, integration success, and the timing and contribution of the Armed Forces contract to justify the leverage taken on.
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