Inspiration Healthcare flags full-year revenue ahead of expectations

12th Feb 2026 13:48

(Sharecast News) - Inspiration Healthcare reported a 24% increase in full-year revenue in an update on Thursday, as strong second-half trading and operational improvements under its 'Back to Basics' strategy drove growth, improved profitability and a reduction in net debt.

The AIM-traded neonatal intensive care specialist said unaudited revenue for the year ended 31 January rose to £47.5m, up from £38.3m in the 2025 financial year and slightly ahead of current consensus expectations of £44.1m.

Second-half revenue increased 10.3% year-on-year to £23.5m from £21.3m.

Adjusted EBITDA was expected to be in line with consensus forecasts of £2.8m, reflecting sales mix effects.

The group said progress under its operational improvement plan had led to stronger execution, growing profits, positive cash flow and a 39% reduction in net debt.

Net debt, excluding IFRS 16 lease liabilities, fell to £5.1m as at 31 January from £8.3m a year earlier, following significant reductions in inventory and receivables.

SLE, the company's neonatal ventilation business, delivered a strong second-half performance exceeding management expectations after a branding realignment.

With local distributor managers now in place in Southeast Asia and Latin America, the group said SLE was positioned to rebuild its international presence and support its growth strategy.

During the year, the company's Florida-based subsidiary Airon Corporation signed a three-year purchasing agreement with one of the largest hospital networks in the United States.

The deal included an initial order for 150 Model A and Neo ventilators and accessories and was expected to create a long-term revenue stream, with additional recurring income from consumables and servicing.

Inspiration said the agreement supported the group's objective of doubling Airon revenue within five years.

"2026 represents a year of good progress for Inspiration Healthcare, with full year revenues increasing to £47.5m and adjusted EBITDA expected to be in line with market expectations," said chief executive Raffi Stepanian.

"We saw a strong performance across the group, which combined with disciplined execution of our 'Back to Basics' strategy, has driven a return to growth in our international markets, improved profitability and reduced net debt."

He added that the firm's refreshed strategy with three business units - SLE for neonatal ventilation globally, Inspiration Healthcare as a medtech distribution channel in the UK and Ireland, and Airon as a leader in pneumatic ventilation - was fully implemented.

"With increased focus on gaining share in Europe, increasing recurring revenues from consumables and service, we are taking important steps towards higher quality revenue streams complementing the revenue from capital sales.

"We ended the year with encouraging sales momentum and a robust pipeline, providing confidence within the team as we look ahead to the 2027 financial year."

At 1327 GMT, shares in Inspiration Healthcare Group were up 13.04% at 19.5p.

Reporting by Josh White for Sharecast.com.