Optima Health (OPT) H2 2025 earnings summary

Executive summary

• FY 2025 revenue was GBP 105 million, down from GBP 110.9 million due to a lost contract and a descoped contract, but underlying organic growth rate was 4.1%.

• Adjusted EBITDA was GBP 17.6 million, margin improved to 16.7% despite lower revenue.

• Statutory operating profit reached GBP 3.2 million, a turnaround from a GBP 0.7 million loss in FY 2024, with underlying profit at GBP 6.0 million excluding GBP 2.8 million demerger and listing costs.

• Net debt reduced sharply to GBP 2.2 million from GBP 34 million, strengthening the balance sheet post-demerger and IPO.

• Three acquisitions completed, adding GBP 17 million annualized revenue and expanding into Ireland and new geographies.

Financial highlights

• Revenue decreased by 5.3% year-over-year due to contract changes, but underlying revenue (excluding lost/descoped contracts) increased by 4.1%.

• Adjusted EBITDA margin rose to 16.7% from 16.4% the prior year.

• Exceptional costs fell to GBP 3.9 million, mainly for demerger and integration; GBP 2.8 million related to one-off demerger and listing costs.

• Net assets increased to GBP 168 million from GBP 127 million year-over-year.

• Net cash generated from operations (ex-leases) was GBP 5.4 million, up from GBP 0.1 million in H1.

Outlook and guidance

• Confident in FY 2026 growth, targeting 25% market share in the GBP 1.2 billion UK occupational health market and expansion beyond core market.

• UK Armed Forces contract to begin delivering significant revenues in 18–24 months, with margins initially below core business but expected to improve.

• Focus on accelerating SME market penetration and leveraging technology for efficiency.

• No integration costs expected in FY26; only minor exceptional costs anticipated.

• Capex guidance for FY26 is GBP 4 million, with ongoing investment in technology and infrastructure.