Optima Health PLC (AIM:OPT) CEO Jonathan Thomas hailed the 'outstanding progress' of the business as it said top-line growth would be in line with expectations, buoyed by organic growth and acquisitions.
The UK-based provider of corporate health and wellbeing services reported revenue of £105 million for the year to 31 March as it broadened its footprint through acquisitions and secured a major government contract.
In a trading update on Monday, the company said second-half revenue rose around 7% compared with the first half, with adjusted earnings before interest, tax, depreciation and amortisation also expected to meet forecasts.
Net debt, excluding leases, stood at £2.2 million at the end of the period. The figure includes £14.8 million in cash and £17 million drawn from a revolving credit facility.
Since its listing on AIM in September last year, Optima has pursued a strategy of organic growth and acquisitions. The group said it had won “significant new contracts” and completed three deals, including its first move outside the UK.
In February, Optima signed a subcontract worth up to £210 million over seven years to provide medical assessments for the UK Armed Forces, in partnership with Serco. The agreement, which could be extended to 10 years, is now in the mobilisation phase, with services scheduled to begin in early 2027.
In the same month, Optima launched its proprietary Digital Assessment Routing Tool in the UK’s National Health Service. The licensing agreement marked the group’s entry into the NHS digital health market.
Following the year-end, the company acquired Cognate Health, an occupational health provider in the Republic of Ireland, for up to €9 million. The deal is expected to contribute around €7 million in annual revenue and €1 million in earnings. Cognate operates 30 clinics and works with a network of 35 occupational physicians.
The acquisition of Cognate followed the purchase of BHSF Occupational Health in January for £1.4 million. That business is expected to add £7 million in annual revenue and bring in 60 clinicians.
In May, Optima also acquired Care first, the employee assistance unit of the Priory Group, for £15,000, with projected annual revenue of £3.7 million. The company said both transactions are expected to be earnings accretive within 12 months.
CEO Thomas said: "Optima has demonstrated outstanding progress against our strategic objectives since the AIM listing in September 2024, growing our presence in our core market and expanding into a new territory, as we continue to lead the transformation of workplace health and wellbeing.
"Looking ahead, we are confident that the strength of our platform will enable us to capture further market share and enhance our position as the UK's leading occupational health and wellbeing partner. Alongside this, we will continue to seek value-enhancing M&A opportunities to accelerate growth."