Inspiration Healthcare Group PLC on Monday said its loss has widened in the first half of its current financial year following a decline in neonatal product revenue, but it expects its full-year results to be second-half weighted.
Inspiration Healthcare is a West Sussex, England-based company that sells products to the hospital sector.
Pretax loss for the six months to July 31 widened to £3.7 million from £140,000 a year prior, as revenue fell 17% £17.0 million from £20.4 million.
Neonatal product revenue in the UK & Ireland fell 20% to £4.3 million from £5.4 million a year before, which was ‘partially caused by the timing of capital orders with strong capital sales in the first half of financial 2024, followed by a weaker second half’, the company said.
Capital items have historically been the main driver of neonatal product revenue, it noted, accounting for 73% of neonatal revenues in the first half of financial 2024. In the first half of financial 2025, capital item revenue dropped 45% to £6.5 million from £11.7 million.
Inspiration Health maintained its suspension of dividend payments.
Executive Chair & Interim Chief Executive Officer Roy Davis said: ‘Although the first half has been challenging, we have seen encouraging signs of recovery from our neonatal business and remain positive about current market opportunities. As previously announced, we expect revenues for financial 2025 to be second-half weighted, and have a strong order book and pipeline for the rest of the year. However, the sales mix will continue to impact gross margins and consequently earnings expectations for the full year.
‘We have a clear strategy to return the business to growth, focused on driving sales, increasing profitability and reducing costs, while developing a clear US commercial plan and research & development roadmap to expand our portfolio of best-in-class products. We remain well-positioned in a stable long-term growth sector and I am confident we are taking the right actions to position the company for the future.’
Shares in Inspiration Healthcare were down 7.4% at 19.90 pence each in London on Wednesday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
