Wednesday, June 24, 2015

News: Inditherm completes reverse takeover

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Innovative Rotherham company, Inditherm, has completed the acquisition of Inspiration Healthcare Limited, a deal which is set to allow the medical business to grow with fewer constraints.

Manvers-based Inditherm has developed products using low voltage carbon polymer technology to provide heat. Its systems are used for patients undergoing operations which carry risk of inadvertent hypothermia and in neonatal wards.

Inspiration was founded in Leicestershire in 2003 as a medical device distribution company focused on innovative products for critical care.

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The £7.2m deal was announced last month after Inditherm completed a review of strategic options with the objective of creating shareholder value. Directors identified the need to make the business part of a larger entity, thereby allowing the medical business to grow with fewer constraints.

AIM-listed Inditherm shifted its focus to the medical market and scored sizeable NHS contracts in 2013 but revenue in 2014 reduced by 10% compared to 2013 to £1.8m and this resulted in an operating loss of £356k.

Uncertainties in the NHS resulted in the performance with Inditherm believing that the apparent slowing of growth is caused in the UK by ever-tightening financial constraints, particularly with regard to capital expenditure in the NHS, rather than a dampening of enthusiasm for its products. A trend that is set to continue.

Inspiration holds a number of distribution agreements and also has a range of own-branded products focused on critical care which are sold in over 40 countries. In the year ended January 31 2015, it recorded revenue of £9.5m, with adjusted earnings of £800k.

The acquisition, considered a reverse takeover, was approved at a general meeting this week. Inditherm has acquired the entire issued share capital of Inspiration with the vendors receiving 83.3% of the share capital with the new, enlarged group readmitted to the stock market. The acquisition values the issued share capital of Inspiration at £7.2m.

Trading in the company's shares on AIM is now under the new name of Inspiration Healthcare Group plc.

Neil Campbell, chief executive officer of Inspiration Healthcare Group plc, said: "The acquisition represents value for both Inditherm and Inspiration Healthcare, creating a company with a diverse product portfolio that will allow us to compete more effectively in a global market. We will continue to invest in developing innovative products and look forward to utilising the resources of an enlarged company to continue our growth."

The company's share price has increased by 70% since the deal was announced.

Inditherm website
Inspiration Healthcare website

Images: Inspiration Healthcare

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