Inspiration Healthcare : Annual Report 2023

INSPIRATION HEALTHCARE GROUP PLC

Our Mission

Our mission is to pioneer medical technology that improves the outcomes of patients, starting with the very first breaths of life.

Our Purpose

To improve health outcomes by providing highly advanced medical technology.

Our Values

As a Group we strive to meet all of these values:

Patient Focused	Outcome Changing	Pioneering	Research Driven
Read more on p26	Read more on p18	Read more on p12	Read more on p32

Group Highlights

Strategic & Operational

• Resilient revenues marginally ahead in a year of unprecedented global macro-economic uncertainty
• Domestic sales growth of 13%
• Branded Products sales growth of 8%
• Major investment in new state of the art Manufacturing and Technology Centre
• Medical Device Regulation (EU)
• • Technical Files all submitted
• Increasing inventory to secure long term supply chain and meet customer satisfaction levels
• Project WAVE study recruitment complete
• • analysis underway
• Progressed USA regulatory submissions
• Expanded acute care portfolio with launch of additional distributed products in the UK and Ireland

Post Year-end

• Cash generative in Q1 FY2024
• Extension to the SLE6000 ventilator range

Read our Annual Report online:

inspirationhealthcaregroup.com

2 Annual Report and Financial Statements 2023

INNOVATE | CREATE | INSPIRE

Group Financial Highlights

Financial

Group RevenueNet cash position2

£	m	£(		)m
	FY2022:	FY2022:	9.3m
	41.2£41.1m		3.8£
Adjusted EBITDA1		Proposed final dividend
£FY2022:4.0£6.4mm		FY2022:0.410.41p perpshare
Increased borrowing facilities3
	Gross Profit Margin
put in place in December 2022

Up to £10m	44%FY2022: 50%

Contents

Operating Profit

£0.4m

FY2022: £4.3m

1. Earnings before interest, tax, depreciation, amortisation, impairment, share-based payments and non-recurring items
2. Cash and cash equivalents, less revolving credit facility and invoice finance borrowings
3. Up to £5m invoice discounting facility plus existing £5m revolving credit facility

Strategic Report

04 About the Group

1. Global Market Revenue
2. Our Business
3. Business Model
4. Chairman's Report

1. Our Business Strategy

1. Chief Executive Officer's Review

1. Operating and Financial Review

1. Environment and Sustainability

1. Principal Risks and Uncertainties

1. Companies Act Section 172 Statement

Governance

1. Statement of Corporate Governance

1. Audit Committee Report

1. Board of Directors

1. Directors' Report

1. Directors' Remuneration Report

Financial Statements

64 Independent Auditors' Report

to the Members of Inspiration Healthcare Group plc

72 Consolidated Income Statement

1. Consolidated Statement of Comprehensive Income
2. Consolidated Statement of Financial Position
3. Consolidated Statement of Changes in Equity
4. Consolidated Cash Flow Statement
5. Notes forming part of the Consolidated Financial Statements

1. Company Statement of Financial Position
2. Company Statement of Changes in Equity
3. Notes forming part of the Company Financial Statements

Shareholder Information

1. Shareholder Information
2. Advisors

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INSPIRATION HEALTHCARE GROUP PLC

About the Group

Inspiration Healthcare (AIM: IHC) designs, manufactures and markets medical technology. As a global provider of medical technology, our mission is to pioneer medical technology that improves the outcomes of patients, starting with the very first breaths of life.

The Group provides high-quality, innovative products to patients around the world which help to improve patient outcomes, and it actively invests in innovative product opportunities and disruptive technologies.

The Group's Branded products focus on neonatal intensive care and a distributed product portfolio, which enables the Group to add value to our customers through a more comprehensive product range. Both are complemented by our Service support.

The Group reports its revenue in three areas of its business: Acute Care (which includes neonatal intensive care and the operating theatre); Service (a range of maintenance and repair options with spare parts); and Infusion Therapies (distribution of infusion-focused technologies in the UK and Ireland).

The Group sells its Acute Care products globally through a network of distributors in more than 75 countries. Products range from highly sophisticated capital equipment through to single use disposables all of which can help improve outcomes of extremely sick patients. The combination of capital equipment and disposables gives the Group a blend of one-off and recurring revenue streams.

The Group's three operating companies have locally implemented quality management systems specific for their business needs, and sell a range of Branded Products where the Group controls the intellectual property and on which the Group has a strategic focus and invests in Research and Development ("R&D").

Additionally, the companies sell Distributed Products which complement and add value to our portfolio and offer Technology Support to customers requiring maintenance and training along with ownership and usage options, including rentals and emergency hire.

In the UK and Ireland, the Group offers direct sales for most of its products supported by Technology Support. We offer on site and return-to-base repair and maintenance along with 24/7 emergency hire of equipment and long-term lease arrangements for our Branded products.

The Group also acts as a distributor for third- party companies that wish to access the UK and the Republic of Ireland's health systems using the Group's sales and service expertise and knowledge of these healthcare providers. The products which we distribute must be synergistic, add value to our existing portfolio and not compete with other products in the portfolio.

The Group invests for growth through its R&D and market development, controlling numerous patents on its technology. It has strong links with academic Key Opinion Leaders around the world and supports clinical research in the field of neonatal intensive care.

Find out more:

inspirationhealthcaregroup.com

04 Annual Report and Financial Statements 2023

STRATEGIC REPORT

INNOVATE | CREATE | INSPIRE

Global Market Revenue

"The Group sells its Acute Care products globally through a network of distributors into more than

75 countries

We sell directly into the UK and Ireland ("Domestic") and partner with established independent distributors in the rest of the world, actively selling in more than 75 countries.

Percentage of Revenue by Market

Domestic 48%	Asia Pacific 23%
FY2022: 43%	FY2022: 25%

Europe 13%	Middle East and Africa 13%	Americas 3%
FY2022: 15%	FY2022: 13%	FY2022: 4%

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