Inspiration Healthcare Group plc
"Pioneering medical technology starting with the very first breaths of life"
Roy Davis - Executive Chairman | October 2024 |
Alan Olby - CFO | |
Today's Agenda
- H1 2024 Highlights
- Business Update
- Financial Review & Outlook
- Summary and Q&A
- Appendices
3 | Innovate | Create | Inspire |
Overview: A Challenging Time
- Overall H1 revenues of £17.0m - down 17% vs prior year
- Neonatal sales declined by 26%
- Impacted by discontinued products
- UK sales down 20% to £4.3m (H1 FY24: £5.4m) - UK restructuring beginning to gain traction
- International sales down 40% at £6.5m (H1 FY24: £10.7m) in H1 - International being re-focused to drive sales
- Infusion business performing well
- H1 growth +19% on prior year, sales of £5.0m a record half year
- Airon sales of £1.2m - more than double vs prior year (pre-acquisition)
- Middle East contract signed and being progressed - expect to ship H2
- Margin pressure - impacted by mix and lower ventilator sales
- FY revenues will be second half weighted - margin pressure to remain
- Turnaround progressing but challenges - it is all about sales!
4 | Innovate | Create | Inspire |
Financial Highlights
- Revenues down on prior year at £17.0 million (H1 FY24: £20.4 million)
- Gross margin: Reduced to 43.5% (H1 FY24: 48.6%)
- EBITDA loss of £0.9m (H1 FY24: profit of £1.8m)
- Operating loss of (£2.0m) (H1 FY24: profit of £0.6m)
- Operating cash outflow of £2.3m (H1 FY24: +£3.5m)
- Net debt increased to £6.8 million (31 January 2024: £6.0 million)
- Fundraise (gross proceeds £3.0m)
Product mix
Impacting
Margins
Strengthened
Balance
Sheet
£0.8m
Increase in
Net Debt
5 | Innovate | Create | Inspire |
Operational Highlights
- Build on positives
- Leverage NHS business in UK
- Neonatal - UK re-organization starting to work
- Infusion - build on strength in Homecare to enter new markets
- Middle East order received - expect H2 shipment
▪ CCO Appointment | Infusion |
YoY Growth | |
▪ Restructured UK sales team | 19% |
- Drive International distributor sales efforts
- North America strategy
- Airon sales outperforming, International sales opportunity
- Meeting with FDA re 510k application
- Re-structuringduring period
- Change in Chairman / CEO - recruitment for new CEO underway
- Closed Hailsham site - annual savings £0.5m
3900
SLE6000
Worldwide
Airon
Sales
Doubled
6 | Innovate | Create | Inspire |
Today's Agenda
- H1 2024 Highlights
- Business Update
- Financial Review & Outlook
- Summary and Q&A
- Appendices
7 | Innovate | Create | Inspire |
Business Update: A Reminder of What We Do - Two Distinct Markets
Inspiration Healthcare designs, manufactures and markets pioneering medical technology that saves
lives and improves the outcomes of patients starting with the very first breath of life
Neonatal Intensive Care
(approx. 75% revenue)
Serviceable addressable market £321m Neonatal ventilation CAGR ~5.1% - 7.1%
- Own brand capital and consumable products with IP
- Distribute complementary products
- Direct sales in UK, Ireland and USA
- Global sales into >75 countries
- Manufacturing in UK and USA
- UK service centre
- In-houseR&D at state-of-the-art manufacturing centre in South London
Infusion Therapies
(approx. 25% revenue)
- Distribution of market leading products
- UK sales & support
- UK service centre
8 | Innovate | Create | Inspire |
Our Immediate Focus - 'Back to Basics'
4. EXECUTE FUTURE STRATEGY
Develop vision & strategy Develop & execute US product & commercial plan
Develop & Implement R&D
Roadmap to deliver on future potential
1. DRIVE SALES
Improve geographic spread Improve distributor sales Leverage NHS relationships Increase recurring revenues from consumables & service
Back
to
Basics
3. IMPROVE WORKING CAPITAL | 2. INCREASE PROFITS |
Reduce inventory | Improve operational efficiency |
Manage CSO / DSO days | Improve product margins |
Improve Supply Chain Management | Reduce costs |
Review structure for efficiency | |
opportunities | |
9 | Innovate | Create | Inspire |
Back to Basics: Driving Sales
- Improve geographic spread
- Direct sales in H1 67%
- Indirect sales in H1 33%
- Strengthen sales team
- Pursue US market opportunity
- 50% of global neonatal market - minimal sales at present
- FDA approval of SLE6000
- Leverage Airon position to build presence
- Focus on higher margin opportunities
- Own brand - 59%
- Distributed products - 41%
- Diversify product offering
- Drive consumable and service revenues
- Identify synergistic portfolio products
Indirect
33%
Direct
67%
Sales
UK
50%
Intl UK
International45% 55%
50%
Sales in 75
Countries
10 | Innovate | Create | Inspire |
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