Inspiration Healthcare Group PLC (AIM:IHC) said results for the year to end of January 2022 are expected to be above market expectations.
Revenues are expected to be around £41.0mln, up 10.9% year-on-year, while adjusted underlying earnings (EBITDA) should be not less than £6.2mln, which would represent an increase of at least 10.5% on the previous financial year.
Operating profit is similarly ahead of market expectations, the provider of medical technology said.
"I am very pleased to announce that the group has performed exceptionally strongly in what was a difficult trading environment with many new problems arising out of the ongoing Covid-19 pandemic such as supply chain issues and cost increases. The group is now well integrated, demand for our products remains high around the world and we enter our new financial year with confidence,” said Neil Campbell, the chief executive officer of Inspiration.
“I'm also pleased to report that we remain on track for the completion of our new manufacturing, tech support and R&D facility in Croydon which is expected to become operational in April 2022. This new facility will integrate many of our operations under one roof and has been designed to ensure an ultra-low environmental impact with the building utilising the very latest in energy-saving technologies to achieve this,” he added.
Cenkos, the company's nominated advisor (NomAd), said it believed the update "shows excellent performance through a difficult trading environment".
"We have adjusted our FY22E forecasts into line with this release, resulting in a 1% increase to our revenues estimates and a c11% increase to adjusted EBITDA. We have also introduced FY23E and FY24E estimates, forecasting low double-digit revenue growth and investments delivering margin improvement in FY24E. We believe the shares offer excellent value at current levels and reiterate our Buy recommendation," the broker said.
"Inspiration Healthcare is a growing player within an attractive global market. We believe [the] company is continuing to reap the benefits of acquiring SLE in 2020, with our forecasts indicating a step increase in revenue growth and investment-driven margin improvement," it added.
Shares in Inspiration Healthcare were up 5.7% at 102.50p in mid-morning trading.
--- adds broker comment and share price reaction. Corrects revenue figure (initially reported by us as £51mln) ---