Optima Health says PAM acquisition costs hold back full-year profit

Optima Health PLC on Monday said the integration of PAM Healthcare Ltd is going to plan although costs associated with the deal dented full-year profit.

The Sheffield-based occupational health services provider said pretax profit fell 4.0% to £2.5 million in the financial year to March 31 from £2.6 million the year prior, despite revenue increasing 15% to £120.6 million from £105.0 million.

Optima Health explained that the reduction in pretax profit reflects higher exceptional costs, increased finance costs and the continued amortisation of acquired intangible assets.

Exceptional items totalled £4.7 million compared to £3.9 million the year prior, mainly driven by acquisition-related costs and related bridge loan fees incurred to support the acquisition financing. Finance costs increased year-on-year to £1.6 million from £665,000, reflecting a full year of interest costs following the demerger from Marlowe PLC and increased debt following the acquisition.

In response, shares in Optima Health were down 3.6% at 238.60 pence in London on Monday morning, but have risen 22% in the last month alone.

Optima Health said integration of PAM Healthcare, the £100 million acquisition completed in March, is progressing to plan, with £2.1 million of annualised cost synergies delivered or in the process of being delivered as at July 31, against a medium-term target of £5 million.

Reflecting the acquisition, net debt, excluding lease liabilities, jumped to £94.4 million from £2.2 million.

Adjusted earnings before interest, tax, depreciation and amortisation grew to £20.1 million from £17.6 million, which Optima Health said is 10% ahead of previous market expectations. Adjusted Ebitda margin is maintained at 16.7%.

Aside from PAM, Optima said its performance was supported by continued organic momentum including the first full-year contribution from Optima Health Ireland and a new strategic partnership with Perkbox.

Chief Executive Jonathan Thomas said: "Optima's performance in FY26 further demonstrates our strong and consistent financial performance as we continue to deliver against our strategic objectives. The acquisition of PAM during the year has enabled us to expand our capabilities and strengthen our ability to support customers across the UK and Ireland. Integration is progressing well, with cost synergies already being delivered."

Optima Health said financial 2027 has started with strong momentum, and it continues to make strong progress against its medium-term targets of achieving annual revenues of £200 million and £40 million of adjusted Ebitda (a 20% adjusted Ebitda margin).

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