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(Sharecast News) - Inspiration Healthcare said on Wednesday that revenue for the six months ended 31 July rose 41% year-on-year to 24m, ahead of market expectations and marking a record half-year performance.
The AIM-traded medical technology company said gross margins improved on the back of stronger sales of higher-margin neonatal products and capital items, combined with cost savings introduced last year.
Profitability also benefited from the delivery of a $6m humanitarian aid contract, the largest single deal in the company's history, which was fulfilled during the period with most payments received.
A contract in the Middle East also saw initial deliveries completed in the first half, with the remainder expected in the second half subject to a letter of credit.
Net debt fell to 6.7m as at 31 July, down from 8.3m at the end of January, with further reductions expected in the second half as cash generation improves.
"I am pleased to report that we have had a robust first half performance and continue to see the benefits of our turnaround strategy," said chief executive Raffi Stepanian.
"With strong revenue growth of 41%, enhanced gross margins, a significant improvement in EBITDA and a reduction in net debt, we are seeing clear evidence that our disciplined 'back-to-basics' approach is driving financial recovery and setting a solid foundation for continued momentum into the second half of the year and beyond."
The company said it was confident in meeting full-year expectations, adding that it would publish interim results on 7 October.
At 1315 BST, shares in Inspiration Healthcare Group were 14% at 23.94p.
Reporting by Josh White for Sharecast.com.
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