Optima Health Plc · LSE:OPT
Optima Health — HY25 Earnings Presentation
20 slides from Optima Health's earnings presentation, Dec 11, 2024
Slide 1: HY25 – Half Year Results
HY25 – Half Year Results 11th December 2024
Slide 2: Agenda
Agenda Introduction and HY25 Financial Headlines 01 Jonathan Thomas Market Overview & Strategic Outlook 02 Jonathan Thomas Jonathan Thomas Chief Executive Officer Financial Review 03 Heidi Giles Progress 04 Jonathan Thomas Heidi Giles Chief Financial Officer 2 10/12/2024 Optima Health | Commercial i
Slide 3: Introduction and HY25 Financial Headlines
Introduction and HY25 Financial Headlines Jonathan Thomas 3 10/12/2024 Optima Health | Commercial in Confidence
Slide 4: Optima Health PLC
Optima Health PLC 4 10/12/2024 Optima Health | Commercial in Confidence
Slide 5: HY25 Financial Headlines
HY25 Financial Headlines HY25: £50.8m (HY24: £56.8m) HY25: £8.7m (HY24: £9.8m) Adjusted Revenue Contraction due to previously disclosed contract loss and a scope reduction in Q3FY24. Adjusted underlying organic EBITDA1 Inline with reduced revenue growth 4.1% HY25: £3.6m (HY24: £2.9m) HY25: £1.1m (HY
Slide 6: Market Overview & Strategic Outlook
Market Overview & Strategic Outlook Jonathan Thomas 6 10/12/2024 Optima Health | Commercial in Confidence
Slide 7: Significant Long-Term Growth Potential within Core Market
Significant Long-Term Growth Potential within Core Market At a Glance Growth Drivers £1.2bn – UK OH Market Combined economic cost of ill- health absence / presenteeism in £150bn the UK (186m days – 5.7 per Favourable population dynamics worker) 3% 14% Forecast growth of UK OH Increased corporate foc
Slide 8: Strategic Outlook: Growth Strategy and Expansion Beyond Core Market
Strategic Outlook Growth Strategy: Targets 25% Market Share and Expansion Beyond Core Market Core market organic growth Strategic fundamentals Extension into new markets and track record M&A to accelerate growth Areas of focus Track record and tested Strong Market Dynamics Consolidation bolt-ons – l
Slide 9: Financial Review
Financial Review Heidi Giles 9 10/12/2024 Optima Health | Commercial in Confidence
Slide 10: Key Financials
Key Financials Revenue (£m) Gross Profit (£m) £110.9m £36.5m £50.8 m £56.7m £18.7m £15.8 m H1 FY25 H1 FY24 FY24 H1 FY25 H1 FY24 FY24 Adjusted EBITDA (£m) Gross Profit (%) £18.0m 32.9% 32.9% 31.0% £8.7m £9.8m 31.0% H1 FY25 H1 FY24 FY24 H1 FY25 H1 FY24 FY24 *Adjusted for exceptional costs including th
Slide 11: Revenue Reconciliation
Revenue Reconciliation Rev enue Reconciliation H1 FY25 H1 FY24 £m £m • Underlying Revenue – Underlying revenue excludes the second-year impact of the Reported Revenue 50.8 56.8 -10.6% client who descoped their services from October 2023 and the Client A lost at tender - 3.0 - client we lost at tende
Slide 12: Financials – Statement of Comprehensive Income
Financials – Statement of Comprehensive Income Statement of Comprehensive Income H1 FY25 H1 FY24 FY24 £m £m £m 50.8 56.8 110.9 • Resilient performance in H1 FY25 Revenue Cost of sales (35.0) (38.1) (74.4) – Cost of sales reduced Gross profit 15.8 18.7 36.5 – Administrative expenses reduced 31% 33% 3
Slide 13: Exceptional Costs
Exceptional Costs Exceptional costs in H1 2025 of £3.9 million No exceptional costs expected in H2 2025 • Restructuring Costs £1.1 million: • No further exceptional costs are anticipated in – the final restructuring costs relating to the integration of H2 2025. the legacy businesses acquired under M
Slide 14: Financials – Statement of Financial Position
Financials – Statement of Financial Position Statement of Financial Position 30-Sep-24 31-Mar-24 £m £m Non-Current Assets 182.1 184.6 • Strengthened balance sheet Inventories 0.1 0.1 – Net Assets at 30th September 24 £165.7m compared to £127.6m at Trade and other receivables 18.6 17.5 31st March 24.
Slide 15: Financials – Cashflow and Net Debt
Financials – Cashflow and Net Debt CASH FLOW and NET DEBT H1 FY25 • Working capital is normally an outflow in H1 £m – £1.0m reduction in VAT provision due to reduced revenue and Adjusted EBITDA 8.7 increased level of exempt supplies (3.9) – Anticipated H1 impacts include £0.9m reduction in bonus acc
Slide 16: Technical Guidance
Technical Guidance • Exceptional costs – No further exceptional/restructuring costs expected in H2 2025 FY25 Guidance • Capex – This includes the ongoing development and enhancement of our Exceptional Costs / Restructuring inv estment £3.9m portals, annual refresh of the oldest mobile delivery units
Slide 17: Progress
Progress Jonathan Thomas 17 10/12/2024 Optima Health | Commercial in Confidence
Slide 18: Progress
Progress Tech & People Growth Operational Transformation • New Board in place • Strong H1 new business • Legacy business • Tech enhancements growth integration complete – Security • Comms & Engagement – £3.6m HY25 enhancements – Service Excellence • Site rationalisation and – £3.1m PB or signed – Qu
Slide 19: Q&A
Q&A 19 10/12/2024 Optima Health | Commercial in Confidence
Slide 20: Slide 20