Optima Health shares fall 8% as full-year revenue, earnings decline

Published 08/07/2025, 11:42
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Investing.com -- Shares of Optima Health  (LON:OPT) fell by 8% Tuesday after the company reported full-year results that matched expectations but showed a decline in key financial metrics and slower-than-expected new business growth in the second half.

Revenue for fiscal 2025 was £105 million, down 5% from the prior year. Adjusted EBITDA came in at £17.6 million, a 2% year-over-year decline and in line with the consensus estimate of £17.5 million. 

Adjusted profit before tax fell 4% to £12.8 million. The company’s net debt was £2.2 million, made up of £14.8 million in cash and £17 million in debt.

New business wins totaled £27.2 million for the year, up sharply from £7.3 million in fiscal 2024. 

However, conversion of new contracts outside the previously secured U.K. Armed Forces agreement was slower in the second half.

Optima Health , which listed on the AIM market of the London Stock Exchange (LON:LSEG) in September 2024, has focused on a buy-and-build strategy to grow its occupational health business. 

The group completed three acquisitions during the year, expanding its footprint in the U.K. and into the Republic of Ireland. Integration of the acquired companies is ongoing.

The company trades at approximately 8.9x its estimated calendar 2025 EV/adjusted EBITDA. That compares with 8.2x for occupational health peers and 13.1x for comparable buy-and-build companies.

The company has begun mobilizing its £210 million contract to deliver medical assessment services to the U.K. Armed Forces. The process is expected to take about 18 months.

RBC maintained its 220p price target and “outperform” rating on the stock, citing continued demand for Optima’s integrated digital services offering and a strong pipeline of future contract opportunities. 

The outlook for fiscal 2026 includes plans to continue disciplined M&A activity and mitigate the impact of rising national insurance and minimum wage costs.

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