Preliminary Results

RNS Number : 8496L

Inspiration Healthcare Group PLC

24 April 2018

 

24 April 2018

Inspiration Healthcare Group plc

("Inspiration Healthcare" or the "Company")

Preliminary Results for the year ended 31 January 2018

Inspiration Healthcare Group plc (AIM: IHC), the global medical device company, today announces its preliminary results for the twelve months ended 31 January 2018 ("2018").

Highlights:

·      Growth and profits on target and in line with long term plans

·      Revenue up 8% to £15.5m (2017: £14.3m)

·      International revenue up 14% to £4.8m (2017: £4.2m) with strong growth in Europe and Middle East

·      Revenue from Own Branded products increased by 7% to £6.9m (2017: £6.5m)

·      EBITDA up 6% to £1.5m

·      Cash remains strong ending the year at £2.1m (2017: £2.2m)

·      European market approval obtained for three new products

·      Increase in R&D investment to 6% of revenue (2017: 4%)

·      Strengthened management and regulatory compliance and systems to support the Company's longer-term growth objectives

Neil Campbell, Chief Executive Officer, said today: "I am delighted to have delivered a set of results in line with expectations. To achieve revenue and EBITDA growth of 8% and 6% respectively, as well as strengthening the depth and skills of our management team whilst also investing in our regulatory and R&D resources and compliance systems is very pleasing."

Enquiries:

Inspiration Healthcare Group plc Neil Campbell, Chief Executive Officer Mike Briant, Chief Financial Officer	Tel: [phone]
Nominated Adviser & Broker Cenkos Securities plc Bobbie Hilliam / Mark Connelly (NOMAD)	Tel: [phone]
Cadogan PR        Alex Walters	Tel: [phone]

About Inspiration Healthcare

Inspiration Healthcare (AIM: IHC) is a global supplier of medical technology for critical care, operating theatre and other medical applications. The Company provides high quality innovative products to patients and caregivers around the world that help to improve patient outcomes and efficiencies of healthcare organisations with patient focused customer service and technical support.

The Company's own brand of critical care solutions span non-invasive respiratory management, thermoregulation and diagnostics, and patient warming for new-borns through to adults in intensive care and the operating theatre, whilst the distribution business supplies solutions to support specialised surgical procedures and infusion therapies.

Present in over 50 countries worldwide, Inspiration Healthcare's success has been built on continuous innovation, excellent customer service and an inherent commitment to improving the quality of life of patients, working in close collaboration with key opinion leaders and stakeholders in the clinical and medical community across the globe.

Further information on Inspiration Healthcare can be seen at www.inspiration-healthcare.com

 

Chairman's Report

I am extremely pleased to announce that our Group continues to grow and evolve as a global supplier of medical equipment.

The Group's revenue rose to a record £15.5 million for the year ended 31^st January 2018 ("2018") (2017: £14.3 million) representing a rise of 8% over the previous year.

This is the second full year as an enlarged Group on the Alternative Investment Market and shows the progress made as the Group thrives and continues to invest in its staff and infrastructure as revenues increase.  Having discontinued the acquired Inditherm Industrial business when the factory was closed at the end of January 2017, we are now fully focussed as a medical device company.

Revenue growth was in line with expectations and was achieved both internationally and domestically, and we are encouraged that the NHS continues to choose our products ahead of our competitors.  We have had particularly good growth of our Critical Care products in Europe.

As we have previously indicated, we expected our revenue to grow and our profits to remain at similar levels to last year as we invest in our business.  Our Operating Profit was in line with our expectations at £1.2 million (2017: £1.2million) with EBITDA¹ improving by 6% from £1.4 million to £1.5 million.  We will continue to invest in the areas of our business that fundamentally underpin our strategies for growth as we believe this is the best use of resources at this stage of the Group's development.  Underlying diluted Earnings per Share ("EPS")² is up 3% to 3.5 pence per share.

We have made significant progress in relation to the regulatory changes that are happening within the medical device industry.  Last year, I mentioned that regulatory requirements are becoming more stringent in our industry and rightly so - medical devices need to be fundamentally safe as well as effective. The tightening of these regulations has led to some delays in new products coming to market. However, with the investment we have made in our people and across the business, we now have a more robust business management system to allow us to develop and launch new products which are compliant with the new regulatory requirements. We are in a strong position to benefit from this investment over the next two to three years.

In March we were pleased to be able to have Henry Smith MP open our new corporate head office in Crawley.  The new 4,800 sq ft facility has improved areas for R&D and meeting space for customers and is close to Gatwick airport allowing for easy access for customers, suppliers and staff. 

Employees

Yet again we are indebted to our staff who have made a significant contribution in a year of great challenge and immense change.  To maintain revenue growth, as the Group has continued to invest and challenge its internal processes, is testament to the fantastic people we have in the Group.  It is very difficult to grow a business without losing the ethos of the Group, but I am delighted to say that every one of the staff I have personally met is completely behind our corporate philosophy of putting the patient first.  The drive to improve outcomes for patients is inherent in all our staff and it continues to propel our business forward.

We have attracted high calibre staff to join our team over the past year and we are seeing the benefits of this as we change the business processes to align with the new Regulatory and Quality Systems that we have to adhere to and to our plans for future growth.

Given the changes within the business I would like to give, on behalf of the entire Board, my sincere thanks to all our employees for their dedication throughout the year.

Outlook

At the end of the year we obtained market approval in the European Union for some exciting new products and we expect them to gain traction in their markets over the next couple of years.  Some of these innovative and disruptive technologies may take longer to fully penetrate the market as an evidence base is created for their clinical impact. The early signs of acceptance are very good and give us an indication of their potential contribution to the success of the Group in the future.

Last year we continued to invest in our business and its core competencies, including increasing our R&D spend by over 40% to approximately 6% of revenue.  We intend to continue to invest in R&D and regulatory expertise as we believe that this will stand us in good stead going forward to create market ready products more efficiently.  We are evaluating the method and timing for us to penetrate the US market once our product offerings have gained clearance from the FDA (Food and Drug Administration).

The impact of Brexit, as with most companies, remains to be fully understood.  Based upon general practice around the world we believe our products are unlikely to incur any trade tariffs, but clearly changes in import and export

¹ Earnings before interest, tax, depreciation, amortisation and share based payments

² EPS before significant prior year tax recoveries in 2018 and for 2017, before exceptional items

documentation and logistics could increase costs. We will continually monitor this and develop plans for our business as the situation clarifies.

As previously described the tougher regulatory environment will again slow the process of product launches however, as the year unfolds, we increasingly expect to turn this challenge into a competitive advantage. We expect to continue our growth trend in the coming year, although it will again be characterised by investment in product development and strengthening of our resources, enabling us to move through the next stages of expansion.

We are optimistic about the potential for our business over the next few years and, accordingly, plan to reinvest the growth in profits to benefit future years.

The underlying strength of the business is starting to show through improving EBITDA and we expect to show some progress in the coming year.  In future years, as new products are launched we anticipate a favourable impact on margins.

Mark Abrahams

Chairman

24 April 2018

Operating and Financial Review

Our revenue grew by 8% during the year ended 31 January 2018 ("2018") to £15.5 million with good growth being achieved both domestically and internationally. Excluding revenue from the discontinued industrial business in 2017, the growth in 2018 was 9%.

Underlying EBITDA¹ increased by 6% to £1.5 million (2017: £1.4 million). Operating profit was £1.20 million (2017: £1.16 million, before exceptional items) up 4% and marginally ahead of expectations. Operating margin for 2018 was 7.8%, slightly down on prior year (2017: 8.1%) as anticipated. Profit after tax was £1.2 million, up £0.9 million on 2017.  Undiluted EPS was 4.0p per share (2017: 1.0p).  Underlying diluted EPS2 was up 3% to 3.5p per share (2017: 3.4p).

Revenue

The overall performance of the Group was in line with expectations at £15.5 million up from £14.3 million in 2017.

In a year where the launch of in-house developed products was delayed due to increased regulatory requirements, it is pleasing to be able to deliver an 8% growth in revenue, with our sales resources focusing on the existing product portfolio. As previously reported, revenues were weighted towards the second half ("H2") with the first half ("H1") slightly up on H1 2017, whereas H2 revenues grew by 15%.

International revenue growth was 14%, partially boosted by exchange rate movements, with particularly strong growth in Europe and the Middle East. Domestic revenue growth was stronger than anticipated, being 6% up year on year, with sales of capital items within the Distributed product range performing well in the second half.

Critical Care

£11.1 million, +11% year on year

Our Critical Care sector grew strongly with Domestic revenue increasing by 4% and international revenue up 29%. The Domestic market is particularly important to us in our distribution model, but in the longer term the real growth will be attained internationally from our Inspiration Branded products. During this financial year we had good performances in both Europe and the Middle East. Revenue from our Technical Support is included within this sector and rose 3% year on year.

Operating Theatre

£1.7 million, -11% year on year

Our Operating Theatre business includes our own brand of surgical warming products. Revenue in this sector showed an anticipated reduction whilst we develop the product offerings around our upgraded patient warming system (which has been delayed due to the regulatory issues referred to above).  Once regulatory clearance for the new products is obtained we expect to build the customer base and long-term revenue as the products are promoted globally.

Home Healthcare

£2.7 million, +12% year on year

Our parenteral feeding product range continues to perform well and we are pleased with the mix between capital and revenue items in this sector.  In 2017 we reported Industrial products revenues of £0.1 million in this sector, which we have now discontinued.

¹ Earnings before interest, tax, depreciation, amortisation and share based payments

² EPS before significant prior year tax recoveries in 2018 and for 2017, before exceptional items

Gross Profit

Gross Profit at £6.8 million increased by 7% (2017: £6.4 million) with gross margin at 44%, broadly unchanged from the prior year.  Revenue from Distributed products, which typically generate lower gross margins than our Inspiration Branded products, increased slightly to 42% of revenue (2017: 41%) or £6.5 million. Whilst growing by 7% to £6.9 million Inspiration Branded products were broadly the same at 45% of revenue with new product launches delayed for the reasons outlined above. Adverse exchange rate movements between Sterling and the Euro slightly reduced the gross margin on Distributed products.

Operating Expenses

Operating expenses increased year on year by £0.4 million or 7% to £5.6 million (2017: £5.2 million, excluding exceptional items), primarily due to additional investment in the management team as well as regulatory resources.

Exceptional Items

The Group had no exceptional items in 2018. The exceptional items reported in 2017 consist of £0.1 million of severance costs following the change of Group Finance Director and £0.6 million for the closure of the Rotherham facility and associated impacts.

Operating Profit

At £1.2 million Operating Profit was 4% above prior year with higher gross profit generated from the revenue growth offsetting the increased overhead investment.

Taxation

The Group has recorded an income tax credit of £21,000 (2017: £132,000 expense). This is net of tax credits for 2017 and 2016 amounting to £183,000 arising from revised computations. For more detail see note 3.

Earnings Per Share

EPS as reported was 4.0p per share (basic and diluted). Underlying diluted EPS was 3.5p per share, up 3% on 2017.

Cashflow

Cash and cash equivalents as at 31 January 2018 amounted to £2.1 million, down by £0.1 million from 2017. Net cash generated from operating activities was £1.0 million, £0.4 million higher than in 2017. During the year we had a net income tax receipt of £0.1 million with prior year recoveries more than offsetting current year payments on account.

Investing activities totalled £1.0 million, primarily capitalised research and development expenditure of £0.7 million on the three new products released towards the end of the year, plus the patient warming system, which has continued into the current financial year.  These have led to the increase in the value of Intangible Assets to £1.2 million (2017: £0.5 million). Property, plant and equipment expenditure of £0.3 million includes the completion of the new Corporate Head Office in Crawley. During the year we took up an option to acquire further shares in Neuroprotexeon Ltd at a cost of £5,000; for more detail see note 7.

Reserves

At the AGM held on 30 June 2017, a capital reduction programme was approved and, following the necessary court hearings, this was completed in early August. Historical accumulated losses in the Company have now been eliminated.

Review of Business and Future Developments

On a Group basis the business review and future prospects are set out in the Chairman's Report above.  The Board believes that overall the Annual Report and Consolidated Financial Statements are fair, balanced and understandable.

Share Price during the Year

The range of market prices during the year 1 February 2017 to 31 January 2018 was 53.0p to 72.0p and the mid-market price of the Company's shares at 31 January 2018 was 56.0p.

Mike Briant

Chief Financial Officer

24 April 2018

 

Consolidated Income Statement

for the year ended 31 January 2018

		2018	2017
		£'000	£'000
	Revenue	15,495	14,323
	Cost of sales	(8,709)	(7,965)
	Gross profit	6,786	6,358
	Operating expenses	(5,582)	(5,913)
	Operating profit	1,204	445
	Analysed as:
	Operating profit before exceptional items	1,204	1,163
	Exceptional items	-	(718)
	Finance income	-	3
	Finance costs	(2)	(4)
	Profit before tax	1,202	444
	Income tax income/(expense)	21	(132)
	Profit for the year attributable to owners of the parent company	1,223	312
	Earnings per share, attributable to owners of the parent company
	Basic expressed in pence per share	3.99p	1.02p
	Diluted expressed in pence per share	3.98p	1.02p

Consolidated Statement of Comprehensive Income

for the year ended 31 January 2018

		2018	2017
		£'000	£'000
	Profit for the year	1,223	312
	Other comprehensive expense
	Items that may be reclassified to profit or loss
	Cashflow hedges	(3)	-
	Total other comprehensive expense for the year	(3)	-
	Total comprehensive income for the year	1,220	312

Consolidated Statement of Financial Position

as at 31 January 2018

(Registered Number: 03587944)
	2018	2017
	£'000	£'000
Assets
Non-current assets
Intangible assets	1,209	535
Property, plant and equipment	461	365
Investments	111	106
	1,781	1,006
Current assets
Inventories	560	778
Trade and other receivables	3,066	2,491
Cash and cash equivalents	2,086	2,165
	5,712	5,434
Total assets	7,493	6,440
Liabilities
Current liabilities
Trade and other payables	(2,756)	(2,909)
Derivative financial liability	(3)	-
Deferred income	(328)	(368)
	(3,087)	(3,277)
Non-current liabilities
Deferred income	(7)	(25)
Deferred tax liability	(34)	(13)
	(41)	(38)
Total liabilities	(3,128)	(3,315)
Net assets	4,365	3,125
Shareholders' equity
Called up share capital	3,067	3,067
Share premium account	-	9,929
Merger reserve	-	4,600
Reverse acquisition reserve	(16,164)	(16,164)
Share based payment reserve	20	-
Other reserves	(3)	-
Retained earnings	17,445	1,693
Total equity attributable to owners of the parent company	4,365	3,125

Consolidated and Company Statements of Changes in

Shareholders' Equity

					Share
	Issued	Share		Reverse	based
	share	premium	Merger	acquisition	payment	Other	Retained
	capital	account	reserve	reserve	reserve	Reserves	earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 February 2016	3,067	9,929	4,600	(16,164)	-	-	1,381	2,813
Profit for the year and total
comprehensive income	-	-	-	-	-	-	312	312
At 31 January 2017	3,067	9,929	4,600	(16,164)	-	-	1,693	3,125
Profit for the year	-	-	-	-	-	-	1,223	1,223
Other comprehensive expense	-	-	-	-	-	(3)	-	(3)
Total comprehensive income/
(expense) for the year	3,067	9,929	4,600	(16,164)	-	(3)	2,916	4,345
Transactions with owners in
their capacity of owners
Employee share scheme expense	-	-	-	-	20		-	20
Capital reduction exercise:
- Issue of B Shares to Capitalise   Merger Reserve	4,600	-	(4,600)	-	-	-	-	-
- Cancellation of B Shares	(4,600)	-	-	-	-	-	4,600	-
- Cancellation of Share Premium Account	-	(9,929)	-	-	-	-	9,929	-
Total transactions with owners	-	(9,929)	(4,600)	-	20	-	14,529	20
At 31 January 2018	3,067	-	-	(16,164)	20	(3)	17,445	4,365

Consolidated Cash Flow Statement

for the year ended 31 January 2018

	2018	2017
	£'000	£'000
Cash flows from operating activities
Cash generated from operations	919	771
Interest paid	(2)	(4)
Taxation received	161	-
Taxation paid	(126)	(203)
Net cash generated from operating activities	952	564
Cash flows from investing activities
Interest received	-	3
Purchase of property, plant and equipment	(254)	(313)
Purchase of intangible assets	(68)	(58)
Capitalised development costs	(688)	(327)
Acquisition of investment	(5)	(6)
Net cash used in investing activities	(1,015)	(701)
Cash flows from financing activities
Finance leases	(16)	(17)
Net cash used in financing activities	(16)	(17)
Net decrease in cash and cash equivalents	(79)	(154)
Cash and cash equivalents at the beginning of the year	2,165	2,319
Cash and cash equivalents at the end of the year	2,086	2,165

The movement in total liabilities for financing activities solely relates to the cash flows for finance leases.

1          Accounting Policies

Inspiration Healthcare Group plc (the Company) is a public limited company incorporated in England and Wales (registration number 03587944) and domiciled in England. The Company's registered address is Unit 2, Satellite Business Village, Crawley, West Sussex, RH10 9NE and the registered company number is 03587944. The Company's ordinary shares are traded on the AIM Market of the London Stock Exchange plc.

The principal activities of Inspiration Healthcare Group plc and its subsidiaries (together, the "Group") continue to be the sale, service and support of critical care equipment to the medical sector including hospitals.

Basis of preparation

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.

There is no ultimate parent company.

Going concern basis

On the basis of current financial projections and available funds and facilities, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and, therefore, consider it appropriate to prepare the financial statements on the going concern basis. Further information on the group's cash resources is given in note 8.

Alternative financial measures

In the reporting of its financial performance, the Group uses certain measures that are not defined under IFRS, the Generally Accepted Accounting Principles (GAAP) under which the Group reports. The Directors believe that these non-GAAP measures assist with the understanding of the performance of the business. These non-GAAP measures are not a substitute for, or superior to, any IFRS measures of performance but they have been included as the Directors consider them to be an important means of comparing performance year-on-year and they include key measures used within the business for assessing performance.

2          Revenue

Geographical analysis of revenue for the years ended 31 January 2018 and 31 January 2017 is as follows:

			2018	2017
			£'000	£'000
UK			10,338	9,770
Europe			3,143	2,728
Asia Pacific			352	438
Middle East & Africa			795	424
Americas			867	963
Total			15,495	14,323

Significant categories of revenue
			2018	2017
			£'000	£'000
Goods sold			13,661	12,543
Services			1,834	1,780
			15,495	14,323

No single customer accounted for more than 10% of revenue.

3          Taxation

	(a)  Analysis of tax charge for the year
		2018	2017
		£'000	£'000
	Domestic current year tax
	UK corporation tax -
	current year	145	153
	prior year adjustment	(187)	(40)
	Total current tax (credit)/expense	(42)	113
	Deferred tax
	origination and reversal of temporary timing differences	17	23
	prior year adjustment	4	(4)
	Total deferred tax	21	19
	Tax (credit)/expense on profit on ordinary activities	(21)	132

(b)  Factors affecting tax charge for the year

The tax assessed for the year is lower (2017: higher) than the standard rate of corporation tax in the UK 19.16% (2017: 20%) as explained below:

	2018	2017
	£'000	£'000
Profit on ordinary activities before taxation	41,202	444
Tax using the effective UK corporation tax rate of 19.16% (2017: 20%)	230	89
Effects of:
Non-deductible expenses	9	133
Tax losses utilised for research and development claim	-	10
Additional deduction for research and development	(77)	(52)
Adjustments to tax charge in respect of prior years	(183)	(44)
	(21)	136
Research and development tax credit - current year	-	(4)
Total tax (credit)/charge	(21)	132

The Research and Development Expenditure Credit (RDEC) scheme for large companies became compulsory from 1 April 2016. The RDEC provides relief against the corporation tax liability for the company of 11% on the amount of qualifying R&D expenditure.

Changes to the UK corporation tax rates were announced as part of the Chancellor's Budget on 16 March 2016. The change announced was to reduce the main rate of corporation tax to 17% from 1 April 2020.

As the change to 17% had been substantively enacted by the balance sheet date, deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

(c)  Factors that may affect future tax charges

The group has gross unused losses estimated at £7,596,000. Brought forward losses transferred to the Group due to the reverse acquisition amount to £7,596,000 and are potentially available for relief against future trading profits. 

4          Earnings per ordinary share

Basic earnings per share for the year is calculated by dividing the profit attributable to ordinary shareholders for the year after tax by the weighted average number of shares in issue.

Basic diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares.

	2018	2017
	£'000	£'000
Profit
Profit attributable to equity holders of the company	1,223	312
Exceptional items	-	718
Numerator for adjusted earnings per share calculation	1,223	1,030

The weighted average number of shares in issue and the diluted weighted average number of shares in issue were as follows:

	2018	2017
Shares
Weighted average number of ordinary shares in issue during the year
for the purposes of basic earnings per share	30,667,548	30,667,548
Dilutive effect of potential Ordinary shares:
share options	66,449	-
Diluted weighted average number of shares in issue during the year
for the purposes of diluted earnings per share	30,733,997	30,667,548

The number of share options have been pro-rated for the time they have been in place.

The basic and diluted earnings per share for the year are as follows:

	Basic	Diluted	Basic	Diluted
	2018	2018	2017	2017
	pence	pence	pence	pence
Earnings per share	3.99	3.98	1.02	1.02

The underlying basic and diluted earnings per share for the year are as follows:

	Basic	Diluted	Basic	Diluted
	2018	2018	2017	2017
	pence	pence	pence	pence
Underlying earnings per share	3.47	3.46	3.36	3.36

An underlying earnings per share and a underlying diluted earnings per share have also been calculated as in the opinion of the Directors this will allow shareholders to gain a clearer understanding of the trading performance of the Group. These underlying earnings per share exclude:

•                      Significant prior year tax recoveries

•                      Exceptional items

5          Intangible assets

		Development	Intellectual	Software
		costs	property	costs	Goodwill	Total
		£'000	£'000	£'000	£'000	£'000
	Cost
	At 1 February 2016	129	661	227	378	1,395
	Capitalised in the year	327	-	58	-	385
	At 1 February 2017	456	661	285	378	1,780
	Capitalised in the year	688	-	68	-	756
	Disposals in the year	(126)	(385)	-	-	(511)
	At 31 January 2018	1,018	276	353	378	2,025
	Amortisation
	At 1 February 2016	127	622	26	378	1,153
	Charge in the year	1	33	58	-	92
	At 1 February 2017	128	655	84	378	1,245
	Charge in the year	7	5	70	-	82
	Disposals in the year	(126)	(385)	-	-	(511)
	At 31 January 2018	9	275	154	378	816
	Net book value
	At 31 January 2018	1,009	1	199	-	1,209
	At 31 January 2017	328	6	201	-	535

 

6          Property, plant and equipment

			Plant,
		Fixtures	machinery,
Leasehold		and	office	Motor
	improvements	fittings	equipment	vehicles	Total
	£'000	£'000	£'000	£'000	£'000
Cost
At 1 February 2016	5	269	978	33	1,285
Additions in the year	221	1	91	-	313
Disposals in year	-	(6)	(76)	-	(82)
At 1 February 2017	226	264	993	33	1,516
Additions in the year	41	9	173	31	254
Disposals in year	-	(214)	(302)	(23)	(539)
At 31 January 2018	267	59	864	41	1,231
Depreciation
At 1 February 2016	4	260	828	27	1,119
Charge in the year	2	2	102	6	112
Disposals in year	-	(4)	(76)	-	(80)
At 1 February 2017	6	258	854	33	1,151
Charge in the year	29	2	114	3	148
Disposals in year	-	(214)	(292)	(23)	(529)
At 31 January 2018	35	46	676	13	770
Net book value
At 31 January 2018	232	13	188	28	461
At 31 January 2017	220	6	139	-	365

Depreciation charged for the financial year is included within cost of sales and operating expenses in the Consolidated Statement of Comprehensive Income.

7          Investments

	£'000
Cost
At 1 February 2017	106
Additions	5
At 31 January 2018	111
Net Book Value
At 31 January 2018	111
At 31 January 2017	106

The Group is an investor in Neuroprotexeon Limited, a drug device technology company which is pioneering the use of the inert gas, Xenon, as a neuro-protectant.

During the year the Group has further invested £5,000 taking the investment to £111,000 in aggregate in return for a holding of 10.0% (8.7% on a fully diluted basis taking into account share options and loan conversion rights of other investors) at 31 January 2018.

8          Cash and cash equivalents

Cash and cash equivalents comprise solely of cash at bank and cash in hand held by the Group.

Included within cash and cash equivalents is a £143,000 security deposit relating to a rolling two year rent on the manufacturing facility at Rotherham. The Group's lease ended during the year and the deposit was released on 21 February 2018.

The carrying amounts of the Group's cash and cash equivalents are denominated in the following currencies:

	2018	2017
	£'000	£'000
Pounds sterling	1,567	1,715
Euro	280	77
US Dollars	236	373
JPY	3	-
	2,086	2,165

9                 Note to the Consolidated Statement of Cash Flows

	2018	2017
	£'000	£'000
Profit before taxation	1,202	444
Adjustments for:
Net finance costs	2	1
Depreciation and amortisation	230	204
Employee share scheme expense	20	-
Loss on disposal of tangible asset	10	2
Decrease in inventories	218	2
(Increase) in trade and other receivables	(575)	(461)
(Decrease)/Increase in trade and other payables	(130)	598
(Decrease) in deferred income	(58)	(19)
Cash generated from operations	919	771

Forward looking statements

Certain statements contained in this document constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Inspiration Healthcare Group plc to be materially different from any future results, performance or achievements expressed or implied by such statements. Such risks, uncertainties and other factors include, among others: general economic conditions and business environment.

Annual Report

A further announcement will be made when the 2018 Annual Report and Financial Statements is available on the Company's website (www.inspiration-healthcare.com) and copies are sent to shareholders.

 

END

 

 

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