Optima Health PLC (AIM:OPT) is set for strong growth in 2026 despite some short-term challenges, according to Panmure Liberum’s latest update.
The broker expects revenue to rise to £125 million (up 19% year on year) in the 12 months ending March 2026, supported by a solid pipeline of new contracts and high customer retention rates of over 95%.
While new business conversion slowed in the second half of 2025, partly due to the company’s recent demerger and listing on the AIM market, management has already taken steps to address this.
Panmure remains optimistic that growth will resume, with further contract wins expected.
A key driver of future revenue is the Armed Forces Recruiting Programme, which Optima will deliver from April 2027.
This transformational contract is valued at £210 million over seven years for Optima’s share, with potential extensions increasing it to £290 million.
Although the broker assumes a gradual ramp-up, this deal should significantly boost revenues from 2028 onwards.
Margins face some pressure in the near term, due largely to rising staffing costs following increases in National Insurance and the real living wage.
Despite this, operating profitability is expected to improve over time as the company benefits from operational leverage and ongoing acquisition integration.
Panmure maintains its target price of 225p, reflecting confidence in Optima’s strategy of combining organic growth with acquisitions.
The company’s cash position remains healthy, supported by a £20 million revolving credit facility, and its medium-term outlook is encouraging, with growth poised to accelerate beyond 2026.