Inspiration Healthcare Group (IHC) H2 2026 earnings summary

Executive summary

• Achieved record revenue growth of 24% year-over-year to £47.5m, driven by £9.5m in one-off export orders and 10% underlying SLE business growth.

• Significant operational efficiency gains enabled delivery of large orders without increasing resources, and inventory was reduced by 33% (£4.3m).

• Streamlined legal structure to two main entities, achieved ISO 14001 certification, and NHS Evergreen Sustainable Supplier Assessment.

• Advanced product and organizational strategy with rebranding around three core brands, clarified long-term roadmap, and prioritized US market entry.

• Strengthened leadership with key hires in regional management, marketing, and neonatal expertise.

Financial highlights

• Revenue increased to £47.5m from £38.3m (+24% year-over-year), with SLE segment up 56% and underlying SLE business up 10%.

• Gross margin improved to 43.7% (up nearly 1% year-over-year), aided by high-margin capital sales.

• Adjusted EBITDA rose to £2.8m (FY25: £0.2m); operating loss narrowed to £0.1m (FY25: £14.7m loss).

• Net debt reduced to £5.1m, lowest in three years, supported by strong operating cash inflow of £7.5m and 39% reduction.

• Operating expenses up 9% due to one-off commissions; normalized expenses down 3% year-over-year.

Outlook and guidance

• FY27 started well with major orders delivered and strong order book, especially for SLE and Airon.

• Launch of branded consumables on track, with further launches and working capital reduction planned to drive recurring revenue.

• Continued focus on inventory reduction and cash generation; medium-term goal to enhance SLE6000 and gain US FDA approval.

• Long-term EBITDA margin target set at 15% as recurring revenues and US market access grow.

• US market access, product enhancements, and efficiency improvements are key focus areas.