Inspiration Healthcare Group LON:IHC, the AIM-listed medical technology company specialising in neonatal intensive care, reported record half-year revenues of £24m for the six months to 31 July 2025, a 41% increase on the previous year, as its turnaround strategy continued to yield results.
The strong performance, ahead of market expectations, reflects both the benefits of last year’s cost-saving measures and a more disciplined focus on higher-margin product lines. Gross margins improved as the sales mix shifted towards capital equipment, particularly neonatal ventilators, which carry stronger profitability than consumables.
Largest ever contract for Inspiration Healthcare
The company’s largest-ever contract — a $6m order from a humanitarian aid organisation focused on child and infant welfare — was fully delivered during the period, with most of the payment received. The contract included deliveries of SLE6000 and SLE1500 ventilators, alongside accessories and consumables. Remaining payments tied to installation are expected in the second half.
Inspiration also progressed on a major contract in the Middle East. The first shipment of ventilators and accessories was completed in the first half, with payment received. The balance of the order is expected to be delivered in the second half, subject to the finalisation of a letter of credit.
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These contract wins, alongside a broader recovery in core neonatal device sales, underpinned both revenue growth and margin expansion. The company said that momentum seen in the first half of the financial year is expected to continue into the second, supported by a robust order pipeline and ongoing demand for specialist neonatal intensive care equipment.
EBITDA improved significantly year-on-year, though figures were not disclosed in the update, while net debt fell to £6.7m at the end of July from £8.3m at 31 January 2025.
The £1.6m reduction was attributed to strong trading, tighter cost control, and improved working capital. Management expects further progress on debt reduction in the second half, strengthening the balance sheet and financial flexibility.
Inspiration’s ‘back to basics strategy’
The company’s “back-to-basics” strategy, launched in 2024 following a period of underperformance, has centred on refocusing on core competencies in neonatal intensive care and improving operational efficiency. The latest results suggest the approach is beginning to deliver sustainable gains, with both revenue growth and profitability benefiting from a streamlined cost structure and sharper product focus.
Analysts and investors will be given a fuller picture when Inspiration publishes interim results on 7 October. For now, the trajectory points to a recovery in profitability after a challenging period of restructuring and balance-sheet pressure.
The improved outlook also comes amid growing demand for neonatal intensive care globally, driven by both demographic pressures and increased investment in healthcare infrastructure, particularly in emerging markets. Contracts such as those won in the Middle East highlight Inspiration’s ability to capture international growth opportunities, while the humanitarian aid agreement underscores the role of its products in global public health initiatives.
The company remains confident in meeting full-year expectations and sustaining momentum into 2026. For investors, the combination of record revenues, improving margins, and progress in deleveraging suggests that the turnaround is on track, though execution on large contracts and further debt reduction will remain key markers in the months ahead.
