Inspiration Healthcare Group PLC (LON:IHC) has declared its maiden interim dividend after a positive first-half performance.
The global medical device company, which has played its part in sourcing ventilators in the UK for use on coronavirus (COVID-19) sufferers, saw revenue in the six months to the end of July 2020 rise by 77% to £14.2mln, up from £8.1mln the year before.
Revenue from the sourcing of ventilators in the period totalled £2.9mln; excluding this revenue and sales contributed by the recent acquisition of ventilator maker SLE, revenue was up 25% on a like-for-like basis.
Underlying earnings (EBITDA) soared 178% from a year earlier to £2.5mln as a result of improved gross margins, additional revenues and the impact of COVID-19 on the timing of some cash-based overheads that are now expected to be incurred during the second half of the financial year.
Profit before tax shot up to £1.1mln from £483,000 the year before.
The group's net cash position at the end of July was positive at £5.2mln, since when the company has paid off the £1.2mln credit facility put in place to pay for the acquisition of SLE.
The cash-generative nature of the business has encouraged the board to declare the group’s first dividend, of 0.2p. The plan is for the final dividend to be roughly double that of the interim divided – circumstances permitting.
The dividend payment still leaves plenty of cash left over to plough back into the business. The group intends to invest in its marketing and accelerate its plans for product development.
"I am delighted to be able to report on such a positive first half of this financial year,” said Neil Campbell, the chief executive officer of Inspiration in the results statement.
“Despite the operating challenges caused by Covid-19, our underlying growth was strong, demonstrating the robustness of our business model and our agility to be able to adapt to new situations quickly. Acquiring SLE has transformed the group and, in the past few weeks we have confirmed our thinking about the exciting opportunities it brings and its potential to deliver more benefits,” he added.
Campbell said the process to integrate SLE into the group has begun “as a major step on our journey to become a world leader in neonatal intensive care.
"We are pleased to declare our maiden interim dividend and are confident of further strong growth during the rest of the year and beyond," Campbell concluded.