Optima Health (OPT) H1 2025 earnings summary

Executive summary

• Delivered first interim results as a public company, highlighting robust and resilient performance despite revenue contraction from prior contract losses and scope reductions.

• Focused on technology-enabled occupational health services with a well-balanced client portfolio and recurring, non-discretionary demand.

• Completed integration of acquired businesses by June 2024, reducing restructuring and integration costs significantly, with no further costs expected.

• Strong new business wins and a healthy pipeline, with £3.1m of new contracts won or post-balance sheet since 30 September 2024, support future organic growth.

• Focus remains on organic growth, margin improvement, and targeted acquisitions to accelerate expansion.

Financial highlights

• H1/HY25 revenue was £50.8m, down from £56.8m in H1/HY24 due to two contract changes and scope reductions.

• Adjusted underlying organic growth was 4.1% after adjusting for contract losses and new business not yet started.

• Adjusted EBITDA was £8.7m (margin 17.1%), consistent with the prior year.

• Gross profit was £15.8m, with a gross margin of 31%.

• Statutory operating loss of £0.4m includes £2.8m one-off demerger and listing costs; adjusted operating profit would be £2.4m.

• Net debt reduced sharply from £34m to £0.6m, strengthening the balance sheet.

Outlook and guidance

• No further restructuring or exceptional costs expected in H2 FY2025.

• CapEx for the year expected to be £3.7m, including software, site investments, and a new London clinic.

• Targeting medium-term EBITDA margin expansion from 17% to 20% through scale and operational efficiency.

• Pipeline of £11.5m in annualized revenues, with a 50% historical win rate on tenders.

• Most new contracts will contribute to FY2026 revenue.