LONDON - Optima Health Plc (AIM: OPT), a leading UK provider of corporate health and wellbeing solutions, reported an increase in adjusted operating profit for the six months ending September 30, 2024, following its demerger from Marlowe plc and listing on the AIM market in September 2024. Despite a decrease in revenue, the company showed a significant reduction in net debt and is actively pursuing growth through new business wins and acquisitions.
The group's revenue fell to £50.8 million from £56.8 million in the same period the previous year, attributed to the loss of a client and another reducing the scope of services required. Adjusted EBITDA was reported at £8.7 million, down from £9.8 million, in line with the revenue movement. However, the company's statutory operating profit showed improvement when adjusted for one-off demerger costs, with a profit of £6.7 million compared to a loss of £0.1 million in the prior year.
Optima Health has successfully integrated its acquired businesses and reduced restructuring and integration costs from £4.4 million to £1.1 million. The company anticipates no further integration-related costs in the second half of the fiscal year. New business contracts with an annualized value of £3.6 million have been secured, offsetting previous contractions, and contracts worth £3.1 million are signed or at the preferred bidder stage post the period end. The company also boasts a strong new business pipeline with £11.5 million in annualized revenue.
The group's net debt saw a dramatic decrease from £36.4 million to £3.6 million, aided by the demerger. This includes the £20.7 million dividend paid to Marlowe plc and the release of intercompany loans as part of the demerger process.
A key development in the company's technology initiatives is the milestone reached with the Digital Assessment Routing Tool (DART) for musculoskeletal triage software in the NHS, with 10,000 patients participating in the pilot.
Optima Health's CEO, Jonathan Thomas, expressed pride in the company's performance and its successful transition to a standalone entity. The focus remains on organic growth and EBITDA improvements, with potential expansion through targeted mergers and acquisitions and entry into adjacent markets.
This financial update is based on a press release statement and provides a glimpse into Optima Health's current financial health and strategic direction.
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