Optima Health (OPT) H1 2026 earnings summary

Executive summary

• Achieved 17% year-over-year revenue growth to GBP 59.5 million in H1/HY26, driven by acquisitions and organic growth in large contracts, with a strong proprietary technology platform and comprehensive service offering.

• Completed two acquisitions: Cognate Health (Ireland) and Care First, expanding geographic reach and mental health services, with integration and rebranding underway.

• Strong new business momentum with GBP 1.9 million annualized new business signed in H1 and a further GBP 8.3 million post-period, supporting future growth and a robust pipeline of GBP 11.5 million annualized revenue.

• Mobilisation underway for a GBP 210 million contract with UK Armed Forces, expected to deliver over GBP 20 million per annum from FY 2028.

• Transformation program launched to drive operational efficiency, margin improvement, and technology enhancement, with key senior hires and phased benefits expected over the next three years.

Financial highlights

• Revenue for H1/HY26 was GBP 59.5 million, up 17% year-over-year.

• Adjusted EBITDA was GBP 8.3 million, down from GBP 8.7 million in HY25, with margin at 13.9% due to higher costs from National Insurance, wage increases, and PLC-related expenses.

• Statutory operating profit improved to GBP 2 million from a GBP 0.4 million loss in HY25, reflecting reduced exceptional costs.

• Gross profit rose to GBP 18 million (29% margin) from GBP 15.8 million (31% margin) year-over-year.

• Net cash generated from operations was GBP 6.5 million, a significant increase from GBP 0.1 million in the prior year.

• Net debt (excluding leases) increased to GBP 4.7 million, mainly due to GBP 6 million spent on acquisitions.

Outlook and guidance

• Strategic initiatives in place to reach GBP 200+ million revenue and GBP 40 million EBITDA, targeting up to 20% margin in the medium term.

• Major contract with UK Armed Forces expected to deliver over GBP 20 million per annum in service revenues from FY 2028.

• Transformation program underway to drive operational efficiency and margin improvement, with benefits expected to phase in over the next three years.

• Robust new business pipeline of GBP 11.5 million annualized revenue, with GBP 8.3 million won or at preferred bidder stage since period end.

• FY26 guidance includes up to GBP 1.5 million in exceptional costs and capex of GBP 3.8 million.