Optima Health PLC (AIM:OPT, OTC:OHLTF, FRA:J3N), the provider of workplace health and wellbeing services, said it had entered its new financial year with strong momentum and remained confident of further growth.
The company pointed to structural demand for occupational health, citing sustained pressure on NHS capacity and the government’s Keep Britain Working agenda as drivers reinforcing the case for employer-led health provision.
It reiterated medium-term targets of £200 million in annual revenue and £40 million of adjusted earnings before interest, tax, depreciation and amortisation, implying a 20% margin.
Priorities for the year ahead include bedding in its largest ever acquisition, rolling out major contracts and accelerating organic growth by deepening client relationships and converting its pipeline.
Chief among those contracts is the UK Armed Forces Recruitment Service, worth up to £210 million over an initial seven-year term, which is expected to go live during 2027.
The outlook followed a year defined by the £100 million acquisition of PAM Healthcare, completed in March, which established Optima as the leading occupational health provider across the UK and Republic of Ireland.
Integration is running to plan, with £2.1 million of annualised cost savings delivered or underway against a medium-term target of £5 million.
The deal left the company carrying net debt, excluding leases, of £94.4 million at the end of March, up sharply from £2.2 million a year earlier.
Since the year end, Optima has repaid a £30 million related party bridge loan in full using proceeds from an underwritten open offer that raised around £35 million.
Turning to the results, revenue rose 14.8% to £120.6 million, in line with market expectations, while adjusted earnings climbed to £20.1 million, running 10% ahead of previous forecasts.
The adjusted margin held at 16.7%, and net cash generated from operations jumped to £17.3 million from £5.4 million.
On a statutory basis, operating profit rose to £4.0 million, though pre-tax profit slipped to £2.5 million.
Chief executive Jonathan Thomas said the year demonstrated consistent financial performance against the company’s strategic objectives, with the PAM acquisition strengthening its ability to support customers.
He said priorities remained clear, spanning service delivery, integration and strategic initiatives to support the next phase of growth.
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