Investors looking for exposure to stable, service-led growth in UK healthcare should take a closer look at Optima Health PLC (AIM:OPT), according to Panmure Liberum.
The occupational health and wellbeing provider reported full-year revenue of £105 million and adjusted EBITDA of £17.6 million, both meeting forecasts.
Despite a £14 million reduction linked to two legacy contracts, Panmure Liberum notes that the company returned to growth in the second half.
This was driven by new client wins and expansion into digital services, including a licensing deal for its triage tool and a long-term Ministry of Defence contract worth up to £210 million.
Optima also strengthened its position through three acquisitions in the year, including BHSF, Cognate Health in Ireland and Care first, a provider of employee assistance programmes.
Panmure Liberum highlights that the group has maintained a low net debt of £2.2 million and is now well placed to scale further.
The broker has raised its target price to 225p (a 20% premium to the current price), citing improving margins, a focused strategy and the company’s shift toward higher value services in proactive health.
Optima, it argues, is becoming a leading platform in preventative care with room for further growth.