Optima Health PLC (AIM:OPT) has struck an upbeat tone on its prospects, backed by a swelling pipeline of new business and fresh contract wins that the board says provide a clear path toward its medium-term goals.
The group, which provides technology-driven occupational health and wellbeing services, said it is confident in its growth outlook as it aims to reach £200 million of revenue and £40 million of adjusted earnings before interest, tax, depreciation and amortisation.
Post period end, it has secured or is the preferred bidder on £8.3 million of annualised new work, helping to underpin organic revenue growth into the 2027 financial year.
A major long-term contract to deliver medical assessment services for the UK Armed Forces, run in partnership with Serco, is also moving through mobilisation.
Service revenues are due to begin in the first half of 2027, and the agreement is expected to add an average of more than £20 million a year once fully operational. Alongside this, Optima reported a strong new business pipeline worth £11.5 million in annualised revenue.
The company is simultaneously rolling out a transformation programme aimed at upgrading its platform and improving margins as it scales. Management expects the initiative to start delivering cost savings from the second half of 2027.
Results for the half year
For the six months to 30 September, Optima delivered revenue of £59.5 million, a rise of about 17% on the same period a year earlier and in line with expectations.
Adjusted earnings came in at £8.3 million, slightly lower than the £8.7 million posted in the prior period, which the company said reflected higher national insurance charges and plc-related costs. Operating cash flow improved markedly to £6.5 million from a small outflow a year earlier.
Statutory earnings were stronger, with EBITDA rising to £7.6 million from £4.8 million and operating profit reaching £2 million compared with a £0.4 million loss in the same period in 2024. Net debt, excluding lease liabilities, stood at £4.7 million.
Acquisitions broaden the business
The company has been active on the deal-making front. It acquired Cognate Health in Ireland in April for up to €9 million, its first international purchase, later rebranding the business as Optima Health Ireland. The deal is meant to allow the group to support clients operating across both the UK and Ireland.
In June, Optima completed its acquisition of Care first, an employee assistance provider bought from the Priory Group for a net £15,000. The business is expected to add around £3.7 million of annual revenue, and Optima says integration is progressing well.
Across the half, Optima secured £1.9 million in annualised new business, compared with £3.6 million a year earlier, while still benefiting from sizeable wins last year, including the Armed Forces assessment contract.
Chief executive’s view
Jonathan Thomas, Optima’s chief executive, said: “Optima has continued to deliver on its strategic objectives. Alongside the two acquisitions we have completed during HY26, we have successfully grown our underlying business, which has helped us achieve 17% top line growth year on year.”
He added: “As we progress, we will continue to invest in our people, technology, and solutions to deliver value for our customers and our shareholders.
"We recognise there are exciting opportunities within our market and we will continue to evaluate those opportunities to create value for shareholders including identifying and executing M&A opportunities to accelerate growth and consolidate our market leadership.”