Don’t panic about two directors selling shares in Inspiration Healthcare (IHC:AIM) as we understand it was down to personal reasons and not a reflection of their views in the company’s outlook.

Chief executive Neil Campbell and sales director Toby Foster sold a combined £225,000 worth of shares at 40p each less than a year after the medical device developer and supplier floated (24 Jun 2015).

Nominated adviser WH Ireland gave Campbell and Foster permission to sell before the end of their IPO lock-up period as the shares were being partially sold to chairman Mark Abrahams and the rest to satisfy institutional investor demand.

The selling directors still hold 18.65% of the company after the transaction which means they remain substantial shareholders.

A trading update scheduled for February is expected to paint a positive picture of the past 12 month’s trading. Pre-tax profit is forecast to have trebled in the year to 31 January 2016 to around £1 million thanks to the company gaining a larger portfolio of products following a reverse takeover in June.

Inspiration Healthcare, which has not made a loss in its 11 year history, sells critical care, surgical procedures and parenteral feeding devices in 50 countries, including the US and India, but the NHS accounts for half of its revenue.

We remain fans of the stock despite the directors selling some of their holdings. Buy at 41p ahead of February’s update.

THE TRADE

Sellers: Neil Campbell, chief executive; Toby Foster, sales director

Consideration: £112,500 each

No. of shares bought/sold: 281,250 each

Subsequent holding: 5,718,089 (18.65%) each