News: Solid start for Inspiration Healthcare

The healthcare group created when Rotherham company, Inditherm completed the acquisition of Inspiration Healthcare Limited in a reverse takeover, has reported an increase in sales and a solid start to the year.

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.

Reporting its financial results for the six months to July 31 2016, the AIM-listed firm had a growth in sales on a proforma basis by 10% to £7.1m compared to the same period in the previous year. International sales were up 19% with growth in the Americas and Europe.

The profit after tax was £361k, up from the £504k loss reported as the takeover was concluded in 2015.

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The £7.2m reverse takeover came after Inditherm directors identified the need to make the business part of a larger entity, thereby allowing the medical business to grow with fewer constraints.

The latest results showed that operating room sales for the Inditherm Alpha range of perioperative patient warming systems showed an expected decline during a "difficult first half year."

The management team has identified and prioritised plans to improve the product in the short term as well as streamline the product offering and its promotion via a new sales team in the UK.

Spend on R&D is set to increase in the second half of the year with the board stating that there is untapped potential with the Inditherm Alpha system and the LifeStart system which facilitates the delaying of the clamping and cutting of the umbilical cord following childbirth by providing resuscitation at a newborn baby's bedside.

The company continues to support academics wishing to study the benefits that its products may bring. LifeStart is being used on studies both in Ireland and the United States of America and "interest in the LifeStart at the Paediatric Academic Society meeting (Baltimore) shows the concept of the product has great potential."

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News: Healthcare merger an inspiration

The healthcare group created when Rotherham company, Inditherm completed the acquisition of Inspiration Healthcare Limited in a reverse takeover is reporting that pre-tax profits are ahead of forecasts.

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.

The £7.2m deal, which completed last year, was announced after AIM-listed 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.

In an update to the stock exchange, Inspiration Healthcare Group said that it expects to report revenue for the year ended January 31 in line with market forecasts and profit before tax ahead of forecasts due to improved trading margins and deferred R&D expenditure.

It added "Since completion of the reverse takeover in June 2015, management has focused on re-engineering the business from two entities into a single supplier of Critical Care and Operating Room products. Part of the re-engineering has involved integrating the sales teams and the routes to market in the UK. Overseas, distribution options have been reviewed to ensure the Group has effective channels for the Group's products worldwide."

For the half year to July 31 2015, adjusted figures showed that the consolidated Group was showing healthy growth in revenue of 17% and an underlying return on sales of 8%. Revenue for the six months was £5.6m compared to £4.5m in the same period in 2014.

The group is set to launch innovative new products focused on the neonatal space.

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News: Inspiration Healthcare's strong foundations for growth

The Inspiration Healthcare Group plc has reported its first financial results since it was created when Rotherham company, Inditherm completed the acquisition of Inspiration Healthcare Limited in a reverse takeover.

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.

The £7.2m deal, which completed in June, was announced after AIM-listed 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.

The board said that since completion of the transaction, restructuring plans are being implemented to improve market focus and deliver the benefits of the combined businesses. They added that progress is encouraging and the process is expected to be completed by the end of the financial year.

For the half year to July 31 2015 the adjusted figures showed that the consolidated Group is showing healthy growth in revenue of 17% and an underlying return on sales of 8%. Revenue for the six months was £5.6m compared to £4.5m in the same period in 2014. The operating profit for the period before exceptional items was £713k, compared to £295k in 2014, and after exceptional items £108k (2014 was £295k). The figures included the elimination of losses of Inditherm plc prior to the reverse takeover.

Cash generated is set to allow continued investment in R&D for innovative new products which will be launched over the next 12 months. These new products are focused on the neonatal space.

Mark Abrahams, chairman of Inspiration Healthcare Group plc, said: "The reverse takeover has brought a scale to the company which will allow us to build on a platform that reaches into areas of critical care in more than 50 countries around the world. This scale will allow us to leverage relationships with distribution partners overseas, create a critical mass in the UK with a larger sales team and allow us to invest further in marketing and R&D for future products.

"The new group will concentrate on three main areas of business, the largest being Critical Care incorporating neonatal intensive care, paediatric intensive care and adult intensive care, the second being Operating Room and the third being Other products which include distributed products for infusion therapy as well as our historic industrial sales.

"It is also pleasing to report that all of our key customers, principals and suppliers have viewed the transaction as positive and have expressed a desire to continue to work with the enlarged group."

"The fully integrated business will have a strong foundation for growth in 2016."

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News: Inditherm completes reverse takeover

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
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