Optima Health confident after fall in full-year earnings
By Josh White
Date: Tuesday 08 Jul 2025
(Sharecast News) - Optima Health posted a resilient full-year performance for the 12 months ended 31 March on Tuesday, with earnings only marginally lower despite a decline in revenue and increased cost pressures.
The AIM-traded company said it was well positioned for renewed growth in the 2026 financial year, supported by recent contract wins, acquisitions, and a strengthening balance sheet.
Group revenue fell 5% to £105m, following the loss of one client and a reduced contract scope with another during 2024.
Adjusted EBITDA declined 2% to £17.6m, representing a 16.7% margin, 40 basis points higher year-on-year.
Operating profit was broadly stable at £13.5m, while profit before tax dipped 4% to £12.8m.
Net debt, excluding leases, was reduced significantly to £2.2m from £34m a year earlier.
Optima highlighted strong strategic progress during the year, including the start of mobilisation on its £210m UK Armed Forces contract.
Revenue from the long-term agreement was expected to begin in around 18 months.
The group also entered the Republic of Ireland through the acquisition of Cognate Health, its first international deal.
New business wins totalled £27.2m, up from £7.3m in the prior year.
Three acquisitions completed since the company's AIM listing - BHSF Occupational Health, Cognate Health and Care First - were all expected to be EBITDA accretive within their first year post-acquisition.
The company said its proprietary Digital Assessment Routing Tool (DART) also gained commercial traction, securing a first licence agreement with Mersey & West Lancashire Teaching Hospitals NHS Trust and four additional trusts under the NHS' GIRFT initiative.
Optima said it saw that as a key platform for future adjacent-market growth.
Operationally, the group faced cost headwinds from National Insurance increases and real living wage inflation.
While they contributed to slower-than-expected new business conversion in the second half, the company said it was taking steps to mitigate margin pressures and accelerate growth.
"We have made significant strides, growing our presence in our core UK market, expanding into the Republic of Ireland through our first international acquisition, and strengthening our platform for long-term, sustainable growth," said CEO Jonathan Thomas.
"We remain well positioned to deliver growth in the 2026 financial year."
The board reiterated its confidence in the medium-term outlook, citing favourable demand drivers, growing interest in digitally enabled integrated offerings, and continued appetite for productivity improvements across client organisations.
Optima said it would maintain a dual focus on organic growth and targeted, value-accretive acquisitions aligned with its long-term strategy.
At 0946 BST, shares in Optima Health were down 9.81% at 190.3p.
Reporting by Josh White for Sharecast.com.
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