Inspiration Healthcare Group PLC (AIM:IHC) maintained its interim dividend as it kept revenue broadly flat and remained profitable in the first half despite supply chain disruption from the war in Ukraine and lockdowns in China.
Group revenue for the provider of neonatal medical technology was £20.5mln in the six months ended 31 July 2022, compared to £20.9mln a year earlier, with branded products representing 54% of the total versus 55% last time.
Chief executive Neil Campbell said: “The first half of this financial year changed dramatically following the invasion of Ukraine by Russia and with further lockdowns in China.
“These two events had an impact on supply chain and sales in our first half. Needless to say, the team has worked hard to ensure the business is in the best shape it could be, prioritising solutions to short-term supply issues and offsetting delayed NHS orders by focussing on other areas of our portfolio.”
Sales were bolstered by large export orders in Iraq (£1.3mln) and Egypt (US$1.4mln), while there was “good progress” reported on European regulatory work and gaining the UKCA mark.
Underlying earnings (EBITDA) of £2.2mln was reported, down from £3.6mln, while operating profit was £1.1mln compared to £2.6mln last time.
An interim dividend payment of 0.205p per share was confirmed, backed by a net cash position that stood at £3.3mln.
With production transferred to the new state-of-the-art manufacturing and technology centre in Croydon, Campbell said Inspiration had a “comprehensive and diverse range of products and a strong order book” as it moved into the second half of the year.
He and chairman Mark Abraham stressed the resilience and agility of the company to manage situations, with the investment in infrastructure, people and systems giving the confidence that it is “well placed to perform strongly, regardless of market conditions, in the longer term”.
“Interest in our products remains and our order book is strong. Global uncertainties could mean that some sales may fall into the next financial year; however, our expectations of profit for the current financial year remain unchanged,” said Abraham.