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Investing.com -- Optima Health Group Ltd demonstrated resilience in its F2025 financial results on Tuesday despite facing market headwinds, with strong new business wins and strategic acquisitions positioning the company for future growth.
The company reported revenue of £105 million, down 5% year-over-year, though excluding expected contract loss and scope reduction, organic growth reached 4.1%, outpacing the average market growth of 3-5%.
New business wins totaled £27.2 million, significantly higher than the £7.3 million reported in F2024.
Excluding the Armed Forces contract, new business wins were £6.2 million, with an additional £1.9 million secured since March 31.
The company experienced slower conversion of new business in the second half of F2025, partly attributed to sales resources being allocated to winning the UK Armed Forces contract and completing the demerger.
Adjusted EBITDA came in at £17.6 million, a 2% year-over-year decrease, with a margin of 16.7%.
Reduced sales costs and administrative expenses helped support the EBITDA performance.
Adjusted profit before tax was £12.8 million, down 4% year-over-year, with no restructuring costs in the second half and reduced exceptional costs following the demerger.
The company reported net debt of £2.2 million, including cash of £14.8 million.
Optima Health drew £17 million of its £20 million revolving credit facility for new acquisitions and working capital needs.
Looking ahead, Optima Health is expected to benefit from structural demand drivers and a solid pipeline of new contracts.
For F2026, core growth is projected at approximately 4% year-over-year, with additional upside from recent acquisitions including BHSF, Cognate, and Care First.
The DART program, now licensed to the first NHS Trust and under review by four other Trusts, is also expected to contribute to growth.
The company’s F2026 and F2027 adjusted EBITDA forecasts have been revised to £18.3 million and £20.2 million respectively, down from previous estimates of £19.2 million and £21.6 million.
This adjustment reflects lower initial margins on acquisitions during integration, slower recovery of National Insurance and minimum wage impacts, and the effects of UK Armed Forces contract mobilization.
Based on a DCF model rolled forward to F2026, the price target for Optima Health is 225p, representing approximately 11.3x C2025E EV/EBITDA.
The company currently trades at approximately 9.6x and 8.8x C2025E/C26E EV/adjusted EBITDA, compared to occupational health peers at 8.2x/7.6x and buy-and-build peers at 13.1x/12.4x.
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