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LONDON (Alliance News) - Inspiration Healthcare Group PLC, previously known as Inditherm PLC, said Thursday it swung to loss in its financial year, as it booked an impairment charge and exceptional costs relating to the reverse acquisition of Inspiration Healthcare Ltd in June.
Due to the acquisition, Inspiration Healthcare provided an unaudited proforma consolidated income statement, reflecting twelve months trading for both companies.
The medical device company said it swung to a pretax loss of GBP277,000 in the year ended January 31, from a profit of GBP265,000, after it incurred a GBP517,000 impairment of goodwill and intangible assets and a GBP872,000 charge for exceptional items, relating to the reverse acquisition. No impairments were booked a year earlier and exceptional items came in much lower.
The company said the exceptional items included professional fees of GBP500,000, including brokerage, legal fees and accounting relating to the reverse acquisition, with the remaining costs for re-organisation, loss of office and redundancy. The impairment charge comprised of around GBP139,000 impairment of intellectual property and a GBP378,000 on goodwill.
Inspiration Healthcare said these charges offset the rise in revenue it reported to GBP13.1 million from GBP11.4 million.
Its statutory results, consisting of twelve months of trading for Inspiration Healthcare Ltd and about thirty-two weeks for Inditherm, showed revenue rising to GBP12.3 million for the year from GBP9.5 million, whilst pretax profit fell to GBP148,000 from GBP980,000, again due to impairment charges and exceptional items.
The company said its current financial year started well, and noted that it has strong recurring revenue through its disposable product and technical support contracts.
"It is pleasing to see how much progress has been made in the enlarged group. The complementary product ranges and routes to market, together with a strong balance sheet, provide a solid foundation for the progress we expect to continue across the business this year," said Chairman Mark Abrahams.
Shares in Inspiration Healthcare were down 1.9% at 53.00 pence on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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