Optima Health (OPT) H2 2026 earnings summary

Executive summary

• FY26 revenue rose 15% to £120.6m; adjusted EBITDA increased 15% to £20.1m, with a 16.7% margin.

• PAM acquisition completed in March 2026, adding pro forma revenue of £66.6m and adjusted EBITDA of £8.2m.

• Annualised new business was £10.8m in FY26, with £8.6m signed or at preferred-bidder stage since year-end; tender pipeline was £33.9m.

• Medium-term ambitions are revenue above £200m and adjusted EBITDA above £40m, with a 20% margin target.

Financial highlights

• Revenue was £120.6m versus £105.0m in FY25; adjusted EBITDA was £20.1m versus £17.6m, with margin at 16.7% in both years.

• Operating profit was £4.0m versus £3.2m; gross profit was £35.3m versus £33.0m, with gross margin of 29.3% versus 31.5%.

• FY26 exceptional costs totalled £4.7m: £3.2m acquisition costs and £1.5m integration costs.

• Cash generated from operations, excluding leases, was £17.3m versus £5.4m; cash generation before acquisition, integration, demerger and restructuring costs was £22.0m.

• Year-end cash was £21.6m versus £14.8m; net debt excluding leases was £94.4m versus £2.2m at 31 March 2025.

Outlook and guidance

• FY27 guidance includes ~£12.0m capex, ~£9.9m acquired-intangible amortisation, £4.7m–£5.0m other depreciation and amortisation, £5.5m borrowing costs and a ~25% adjusted effective tax rate.

• FY27 exceptional costs are expected to include ~£3.5m integration and restructuring costs and ~£0.4m acquisition-related financing costs; ~£0.4m share-based payments are also expected.

• The UK Armed Forces Recruitment Service contract is expected to contribute more than £20m in annual revenue after transition; delivery is planned to begin in December 2027.

• Growth priorities include pipeline conversion, further M&A, integration synergies and operational efficiencies; management expressed confidence in FY27 and medium-term ambitions.