Inspiration Healthcare Group (AIM:IHC) has reported interim revenue of £22.0 million for the six months to 31 July, down from £24.0 million a year earlier, with the comparative period previously boosted by £6.5 million of one-off export orders.
The AIM-listed neonatal medical technology group said underlying revenue, stripping out that one-off benefit, rose 26%, with growth across all three divisions.
Gross profit fell to £9.2 million from £11.1 million, with the gross margin declining to 41.9% from 46.2%, a drop the company attributed to the prior year's higher-margin export orders, a greater mix of lower-margin infusion therapies sales, growth in lower-priced international markets, and higher component costs tied to pandemic-era electronic parts still working through inventory.
Operating profit rose to £0.6 million from £0.2 million, helped by a £0.3 million non-recurring credit linked to the settlement of dilapidation liabilities at its former Croydon site, offset by a severance provision. Adjusted EBITDA, which strips out non-recurring items, depreciation, amortisation and share-based payments, was £1.2 million, slightly below £1.3 million in the comparative period.
The core SLE neonatal ventilation business, the group's primary product line, generated revenue of £13.4 million, with underlying growth of 35% once last year's export orders are excluded; UK and Ireland sales rose 32% and international sales rose 37% on the same underlying basis.
Inspiration Healthcare's UK distribution arm grew revenue 9% to £7.0 million, driven by a recovery in Infusion Therapies sales to £5.5 million as destocking effects from a major customer unwound; that business is being transferred to an entity controlled by Micrel Medical Devices from 31 January 2027, with the staff who manage it having already moved across to Micrel under TUPE on 1 July.
Airon, the group's US-facing ventilation brand, lifted revenue 40% to £1.6 million, supported by an initial order under a three-year purchasing agreement signed in January with a large US healthcare provider.
Cash generated from operating activities was £2.7 million, down from £3.6 million a year earlier, while net debt excluding IFRS 16 lease liabilities stood at £5.2 million, broadly stable against £5.1 million at the end of January.
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"H1 FY27 demonstrates the strong progress we have made in refocusing the Group on its core businesses," said chief executive Raffi Stepanian, adding that underlying revenue growth of 26% reflected "the success of our 'back to basics' approach and our continued focus on customers, distribution partners and operational discipline."
Inspiration Healthcare said it now expects full-year revenue of at least £43 million, an upgrade to its prior guidance, with momentum expected to continue into the 2028 financial year.
The company also confirmed it has secured credit approval to renew its £5.0 million revolving credit facility for a further three years, with an option to extend.
Development work on securing US market access for the SLE neonatal ventilator remains on track, with an FDA filing targeted for late 2027 and clearance expected in the first half of 2028, alongside a planned launch of the Group's first proprietary consumables range in the fourth quarter of the current financial year.