Good morning everybody and welcome to our FY 2025 Results Presentation. I'm Jonathan Thomas Chief Executive of Optima Health and I've got Heidi Giles with me Chief Financial Officer. Today I'm going to cover FY 2025 financial headlines have a look at our strategic progress and outlook. I'll then hand over to Heidi to go through the financials in some detail and then we'll open up for some Q & A towards the end. Before we get into that just to reacquaint those of you who might not be familiar with the Optima story I'm just going to give you a very quick overview of our business and what we do and a little bit about our market. We're the U.K.'s leading provider of occupational health and wellbeing solutions and our purpose as a business is to optimize workplace wellbeing health and wellbeing. Sorry and what does that mean?
We work with organizations we implement multi-year health programs where we monitor report and advise on workplace related health issues. That might be helping an organization comply with legal obligations with health surveillance programs it might be supporting them make favorable management decisions and improving their productivity either keeping people in the workforce or getting people back into the workforce. We also implement treatment and rehabilitation programs as well really supporting their workforce and their employees to get back into work. We support about 5 million employees in the U.K. across over 2,000 clients rough order of magnitude about 1 million interventions a year conducted by our expert clinicians of which there are 900 and we're 1,600 or so employees in total. Investment thesis wise just to recap in terms of the four items that you can see there we've got a very large and growing market with positive dynamics.
I'll touch on that in a little bit more detail in a moment or two's time. Our business is profitable. We've got a contracted model and very recurring good visibility of revenues and good cash generation as a result. We've got a track record as a business. We've been on a strategy of buying and building in the occupational health business. We've got a lot of experience of building our business through M&A as well as organic activities. We believe we've got the best platform. We've got a great platform to enable and support that future growth. Taking a glance at the growth potential of our market and to recap on this the issue at hand in terms of that we're trying to address is that number there in the top left-hand side.
GBP 150 billion is the estimated cost of workplace-related ill health absence and presenteeism in the U.K. a huge number. If you look beyond the workforce the people who aren't even in the workforce you've got a further 2.8 million people in the U.K. who are economically inactive due to ill health. As a result our occupational health market is about GBP 1.2 billion in size currently and forecast to grow around 4% per annum another GBP 0.2 billion to 2028. Really interesting for us as you can see over in the little donut pie chart over on the right-hand side there's only 57% of our market which is currently outsourced to commercial providers like ourselves. Lots of road ahead of us in terms of future first-generation outsourcing. Similarly estimates suggest that around 80% of smaller enterprises don't have any access to any occupational health provision at all.
As we all well know most people in the U.K. are employed by an SME not a large organization so lots of opportunity for us to grow there coupled with more systemic growth drivers as you can see on the right-hand side. I won't go through them all but favorable population dynamics the workforce is getting older and progressively less healthy leads to increasing need for our services increasing complexity of what we see etc. I would say increasing prevalence of mental ill health in the workplace again requiring support from our expert clinicians there. Moving then onto our FY 2025 financial headlines we're pleased to report revenues for the year of GBP 105 million we've disclosed previously in terms of at the back end of 2023. At FY 2024 we lost a contract and another contract was descoped which is the core reason for the reduction in revenue in FY 2025.
Underlying and Heidi will go into a slide later on we've reverted back to growth. We think there's an underlying growth rate of 4.1% within those numbers. Over on the adjusted EBITDA and EBITDA margin as you can see there in FY 2025 we delivered GBP 17.6 million of EBITDA and improved our EBITDA margin to 16.7%. We're pleased with that again in terms of amongst that revenue reduction that we've just reported. We now have PLC costs within those numbers that are baked into those numbers and all the costs associated with that. Following our demerger at the middle of last year as well as our implementation and integration team is now baked into our EBITDA number above the line. That's a fully costed EBITDA number and we're pleased with the cost management that we've been able to deploy in year and delivering 16.7% EBITDA margin.
That's also highlighted by the restructuring integration costs as you can see there. We closed the year with GBP 1.1 million of integration and restructuring costs with our numbers versus GBP 8 million the previous year a significant reduction there. Following the large scale integration that we did FY 2024 and into FY 2025 which completed in half one of FY 2025 we had no integration and restructuring costs in the second half of FY 2025 which then results on our statutory operating profit as you can see there at GBP 3.2 million for the year versus a loss of GBP 0.7 million in FY 2024. A big step forward for us there. It's worth noting as well that that included the one-off cost related to the demerger and IPO in September of GBP 2.8 million. Underlying that's about a GBP 6 million statutory operating profit versus the GBP 0.7 million loss in the prior year.
A big step forward for us there from a bottom line profitability perspective if we then look at the growth aspects of the business. New business wise we've had an absolutely bumper year. GBP 27.2 million of annualized revenue that awarding year versus GBP 7.3 million in the previous year. That's highlighted by the transformational win that we announced earlier in the year with the UK Armed Forces part with Serco to deliver services into the future with them. In addition to that since the year -end we've won or were preferred bidder on a further GBP 1.9 million of annualized new business since 31st of March. From an M&A perspective we continue to develop. We'll touch on in a few slides time. We have completed three acquisitions since the listing adding around about annualized GBP 17 million of revenue and we've deployed around GBP 7.5 million of capital there.
From an EV to sales ratio about just under a half of a turn there. We think there's significant value that we can create as we integrate those over time. To support that on an ongoing basis we have a net cash position which is significantly improved as well. We were at GBP 2.2 million net debt versus the previous number of GBP 34 million net debt mainly as a result of our demerger and IPO from Marlowe in the middle of last year. Looking at our strategic outlook and some of the progress that we've made to recap on our strategy we've got ambitious growth plans and a plan in place to grow to 25% market share of our core U.K. occupational health market of GBP 1.2 billion as we mentioned before. There are a number of strands that we will be focusing on to do that.
Core market growth will be a key area. We'll be looking to deliver first generation outsources win market share grow our SME and book of business over time. We are investing and looking at initiatives to do that. We will extend into new markets where they're complementary to us where we have skills and expertise to be able to do that. Good examples of those are the UK Armed Forces contract that I mentioned earlier and our breaking into the NHS with our DART software which is Digital Assessment Routing Tool . That's a good example there. We will continue with our disciplined approach to M&A and look to augment that growth. There are a few areas that we will look at. We will look to continue to consolidate the U.K. occupational health market. It's still a very fragmented market.
There are up to 5,000 occupational health providers in the U.K. so there is value for us to create there. We will look at complementary services where we can deliver revenue synergies with our clients. We've got over 2,000 customers. Today those are direct relationships with those customers. When we bring on further M&A that gives us the option to sell additional services to those clients and we will look at entry into attractive new markets where that makes sense for us. A good example of that is we've recently entered into the Irish market with the acquisition of Cognate . In terms of progress since listing which feels like five minutes ago but was actually September we have completed several acquisitions. We acquired the BHSF occupational health business in February.
That was around GBP 7.5 million of revenues and is a U.K. consolidation bolt-up integration activity as we've done previously. As I mentioned we have the Cognate acquisition which is our first outside of the U.K. in Ireland. That brings access to the Republic of Ireland market scale across Ireland and the ability to service multinational clients that perhaps want UK&I provision and adds around EUR 7 million of revenues. More recently we acquired Care first which was the EAP business of the Priory Group in May. Similarly that's a bolt-on to our existing EAP business but as I mentioned before from a revenue synergies perspective also brings with it another roughly 1,000 clients that we can look to sell other services and occupational health services to as well as the existing EAP services.
At the half year or just after the half year we reported that we had sold our first software license of DART into the NHS. We've then increased that with another four NHS trusts since then who are currently using DART under the Get It Right First Time initiative and within the NHS. There's some good progress being made there on that. As I mentioned the transformational service we won with the UK Armed Forces that we announced back in February seven-year initial term potentially up to 10 years with options to extend there and obviously transformational numbers there from a revenues when that gets going and then looking in a little bit more detail. If I've talked about the UK Armed Forces a little bit there and we'll talk about the transition in a second we've got strong new business growth excluding that.
We deliver GBP 6.2 million of annualized revenue in FY 2025 excluding the Armed Forces piece of work. As I said GBP 1.9 million at preferred bidder stage or one since March. We've seen the time to convert some of those slightly slower than we would have expected and we're investing in looking at how we accelerate that core business as we go forward. From an M&A perspective as I mentioned we've completed three acquisitions added GBP 17 million of revenues to our business and a new geography in the Republic of Ireland. We've got a well-developed pipeline of activity at all stages of origination from early discussions through to things that we might be about to get into exclusivity in the coming months. We'll look to continue to convert those as we have done in the past. Operationally the UK Armed Forces contract transition is well underway from a service revenues perspective.
That's expected 18 months - 24 months' time to start to be delivering revenues. We announced about opening our London clinic our new London clinic and last time I think we did an analyst presentation and that's now fully open and fully operational. The acquired businesses again well underway from an integration perspective. As you would imagine some of those businesses are at different corporate margins than our core Optima businesses and there will be a period as we integrate those where margin on those acquisitions is dilutive. However we expect to deliver operating leverage when those integrations are completed from that increased market share both from a gross profit perspective and also an overhead leverage perspective. The core performance of our business is good.
We've got strong KPI delivery and in our world that is turnaround of appointments quality of our clinicians' reports and the quality audits that we do. All of those are good. We're also investing in how we facilitate and support our growth as we go forward. Previously we've talked about our GROW program which is where we onboard non-qualified occupational health clinicians and put them through a qualification. We have onboarded 82 of those recruits in the past 12 months and they're on the journey to get an occupational health qualification who will be the people who support and deliver our revenue growth as we go forward. Like a lot of businesses in the U.K. we have been impacted by additional national insurance increases and we're putting in place actions and initiatives to mitigate those as we go forward.
Not least last time we spoke around some pilots that we're doing in the technology space. We've moved some of those pilots onto feasibility studies. One in particular utilizing AI. We are looking at how we streamline some of the clinical delivery the clinical assessment the report production etc. Heidi would you like to take over and go through some financials?
Yes thanks. Hi everyone. First of all having a look at our statement of comprehensive income. Our revenue slightly decreased from GBP 110 million in financial year 2024 to GBP 105 million in financial year 2025. As previously disclosed and also touched by Jonny earlier this relates to the one contract lost and the contract descoping that we saw in the second half of financial year 2024. In response to this revenue reduction in the year we have carefully managed our costs. What you can see when you look at this statement is that both our cost of sales and our administrative expenses have decreased year -on -year. As a result of this careful cost management we've been able to protect our adjusted EBITDA and we're really pleased to see that that is only down slightly to GBP 17.6 million in the year.
Also as mentioned by Jonny really pleasingly our adjusted EBITDA margin has actually increased slightly to 16.7% in that period. Looking at a couple of lines in more detail the exceptional items you can see quite a significant reduction year- on- year. In financial year 2024 that was GBP 8 million. In financial year 2025 that has come down to just GBP 3.9 million. Really importantly to note is that GBP 2.8 million of that GBP 3.9 million is those demerger and listing costs which are one-off in nature. Looking at the bottom sort of third of the table where it details some of the amortization and depreciation costs. As expected those are largely consistent with the prior year. No real movement. Thank you. Now just having a look at the revenue and trying to do a little reconciliation on this.
What we've done here is we're looking at the underlying revenue movement if we exclude the impact of those two contracts that we've talked about. What you can see here is client A lost at tender and client B the descope. If we remove the impact of both of those for both years the underlying revenue has actually slightly increased. You can see a 2% increase. In addition to that when you look at the bottom portion of the table we consider what movements we now know about which are happening in financial year 2026 which have not impacted financial year 2025. In the first line you can see new business that we've won which was not included in financial year 2025 is circa GBP 3.2 million annualized.
At the same time business that we know is not going to renew with us which was in 2025 offsetting that is around GBP 1 million. Actually that's a step forward overall. When you adjust for those to see where we're looking today you can see that that is an underlying movement of the 4.1% that Jonny mentioned. It's just worth noting that there's no reference there the new business one not yet started that is not including the go live revenue for the Armed Forces contract that we expect from 2028 onwards because then that would be a much larger number. This is just looking at now. Just touching on exceptional costs. As we mentioned that has decreased significantly down to GBP 3.9 million in financial year 2025 that was made up of GBP 1.1 million of integration costs.
That is a combination of the cost of the integration of the legacy businesses we acquired under Marlowe and that integration activity as Jonny said has now ended. Also any impact from deferred consideration payments that we still had then separately we had the demerger and listing costs of GBP 2.8 million. Moving forward into financial year 2026 and future we don't expect restructuring and integration costs in the same way. All costs relating to the demerger from Marlowe have been accounted for. They're in the financial year 2025 numbers and are finished. As Jonny mentioned and we've talked about previously we have retained our integration and change team and they support us both in delivering new client transitions and also in M&A transitions. That cost since the start of H2 2025 is fully costed in our numbers within EBITDA and is not adjusted out.
However we are aware that some acquisitions we do may necessitate the use of external expert advisors such as lawyers or tax due diligence experts for example. When we do incur those costs they would be separated out in the P&L and they will be included in any announcements for acquisitions those costs and furthermore any true sort of redundancy costs would show as exceptional. Moving on now to the statement of financial position. We can see a really strengthened balance sheet compared to end of 2024. March 2024 our net assets at 31st of March 2025 are GBP 168 million compared to GBP 127 million a year ago. One of the biggest areas for movement within that has been the debt and cash. We've seen a reduction in net debt from GBP 34 million to GBP 2.2 million excluding leases. Those big movements came about during the demerger.
You can see the GBP 55 million of related party loans that we had at 31st March of 2024 have been released and there's no related party loans on the balance sheet. Also you'll know that we paid a GBP 20.7 million dividend at that time to Marlowe. At the end of the year under our borrowings you can see that we have GBP 17 million drawn that is of our GBP 20 million RCF that we have available. That included the funds we needed in preparation to purchase Cognate in early April subsequent to year end. Looking now at the cash flow and net debt we can see that our net cash generated from operations excluding leases was GBP 5.4 million. That is an improvement of GBP 5.3 million compared to the GBP 0.1 million we had in the first half of the year. That is a big step forward.
There has been a movement in working capital and the largest components of that movement are a GBP 3.8 million reduction in accruals also a GBP 1.2 million reduction in VAT which is the result of reduced revenues but also a higher portion of our sales being exempt than standard rated compared to previously. We have a number of timing differences that always happen from year -to- year. We have a decrease in trade payables a reduction in customer related deferred revenue and an increase in trade and other receivables as detailed. When you move on to the movement in net debt as we've touched on that has been impacted by the GBP 20.7 million dividend paid to Marlowe offset by the GBP 55 million related party loans that were released.
The result of that is that at the end of 2025 we have net debt excluding leases of GBP 2.2 million compared to GBP 34 million the year prior. For 31st of March 2025 that represents a 0.13 multiple of our adjusted EBITDA. For anyone who is looking for technical guidance looking at financial year 2026 that is available in the appendix. Okay back to you Jon.
That's brilliant. Thanks Heidi. I'll just finish off just recapping on the investment highlights. Optima we're the U.K. leader by size in corporate health and wellbeing covering both public and private sector. We're roughly 50/50 as I mentioned before over 2,000 clients covering 5 million of the U.K. workforce and scale across the U.K. We have a large and attractive market that's got favorable dynamics for long-term growth and our business as you've seen and Heidi's detailed is profitable. We have contracted and recurring revenues contracts generally three years - five years in length good renewal rates and some good win rates there. Underpinned by good cash generation it is a good financial foundation for our business. We've got good confidence in our FY 2026 growth and confidence in the outlook. Longer term there's multiple drivers for growth as I talked about earlier.
We've got organic opportunities we've got potential new market opportunities and adjacencies and we've also got a track record of converting M&A consolidating the market of which there are lots of opportunities still available for us and we've got a good pipeline of opportunities to do such. From a platform perspective we've got in our view the industry-leading platform to be able to do that. We're digital enabled and we have invested heavily over the years in preparing to be able to consolidate the market as I mentioned there. I wanted to leave you and recap on those investment highlights. We'll close from a presentation perspective and open up for some Q&A if there are any questions and we'll take them from the room first. I think we'll go to a few online after we've exhausted the room if that's okay. I think Tanya's got the mic already. She'd beat you to it.
Hi there thanks for taking my question. Just on the slowing new business conversion can you dig into that a bit more and explain whether it was the rollout of the companies or it was implementation or if you understand any of the drivers behind that? Have you seen it continue into the first part of 2026? Just on the new business wins you're at GBP 1.9 million since March. Can you talk about that relative to last year and how you see new contracts rolling out and if you see a continued flow of business on that front?
Yeah we'll cover that and maybe you can augment the answer. We've seen a slowing of some of the conversion of new business. It feels funny to say. I mean we've just had the biggest year of new contract wins that we've ever had. We're talking about the underlying core occupational health business here and our business in its nature as I mentioned three years- five years in length. Those contracting cycles come at various periods. We're just comparing that to what did we have in the last half of previous. That's not to say that isn't going to pick up again. There's obviously things going on in the market in terms of the general economics. I don't know whether people have been taking more time on procurement decisions and things like that.
That was just slightly slower than we would have expected against the backdrop of as I mentioned the biggest overall new business wins that we've had. We're looking at how we want to accelerate that and continue to deliver strong growth in that underlying core market. We'll be looking at continuing to respond to tender driven work which comes from our larger work but also looking at more aggressively how do we now attack the SME market which is often not tender driven more marketing driven more proactive sales type driven. We're going to be looking at that again. The GBP 1.9 million in terms of that we've won since the year end is not unusual. I think when we sat here at half year I think we had about GBP 3 million that we'd won roughly speaking and what have you. It's not out of kilter.
We've got lots of pipeline of activities that we're working on. We're as busy as ever from a tendering perspective. We're obviously just looking to make sure that we convert those. It's not a uniform conversion. You don't get the same conversion every quarter. Did I answer your question there? Did I miss anything? Yeah. Julie did you have a question as well?
Yeah Julie Simmonds Panmure Liberum. Just wondering in terms of the sort of first generation outsourcing and whether the sort of general macroeconomic environment is making it more difficult or making people more interested in occupational health where they don't have those services currently.
Is the macroeconomic environment? Probably not macro wise. I would just say what we've said previously about first generation outsources are still new. A lot of organizations are realizing that they need a greater level of service provision. They might be a multi-site organization they don't have the same level of access to expertise and depth of resources etc. All those dynamics are still at play. I wouldn't necessarily say I mean maybe I mean we've had one or two in probably in the past 12 months who have been looking at actually they wanted to save some costs through that process in terms of. It's more the return on investment that they're looking for. They're looking for a better quality service that will have better impacts on the productivity of their own workforce and better compliance rates etc.
I'd probably say those are the key dynamics rather than any other macroeconomic impact.
For them to be able to use our governance framework that we have in place because that's not necessarily their area of expertise of having an occupational health governance. Thank you. Just on the acquisition side are you seeing any? There's obviously quite a lot of activity in terms of the occupational health market generally with your peers also looking at an M&A strategy. Is that having an influence on the prices out there currently that you're having to pay?
I wouldn't necessarily say so in terms of we're not generally seeing competing consolidators in the market. There's M&A activity in terms of that's prevalent all the time but we're not really seeing and I mean the deals that we've been doing have largely been there's not really been processes around them in terms of the relationship-based bilateral deals that we've converted and we've got a strong pipeline of those. We've been tracking probably for five if not more years when they're ready and we're quite disciplined and picky in terms of what we actually want to buy and integrate. For us we've got our own discernment of where we can create value. It's not a case of it's X EBITDA you apply a multiple to it.
We're looking at it a little bit more closely than that understanding how it will integrate into our business how it'll fit with our business and what we can drive out of that. Not really seen an impact from the smaller deals. As you say the market is very much of interest generally at the moment I would say.
Thank you.
Yeah. Just a couple of questions I guess on the NHS. First your DART contracts just a kind of makeup of those. Are they sort of material in nature? Length of you know those license contracts are they sort of the three + one sort of makeup? Jonny you mentioned about new market and new market opportunities and being able to transfer your capabilities. I think sort of previous material that you've released to talk about sort of bidding for NHS talking therapies contract. Just wonder if there's been any sort of progress on those fronts as well.
From a DART perspective there's a bit of a mixture in there. The first license that we announced was effectively an annual recurring license and obviously we'll go through renewal process etc. The following four were under the Get It Right First Time initiative so they are six months- nine months worth of funding. That's effectively looking at musculoskeletal waiting lists in the U.K. That's a six months- nine months program of activity. Obviously from the successes of delivering DART we will look to turn that into an annual recurring type contract. In terms of scale it's a very small element of our business at the moment in terms of an early growth stage of that. It's a relatively small number but obviously a first step into delivering software into the NHS there.
From a talking therapies perspective and adjacent markets perspective we're looking at a whole multitude of other adjacencies where we deliver. We deliver musculoskeletal mental health treatment and rehabilitation interventions in the workplace widely. There are areas that we don't currently operate into both in the NHS space but also musculoskeletal-only space etc. We're looking at those. We're not I would say pushing those as hard as our core occupational health organic growth looking at breaking into the SME perspective generally. When we're breaking into those markets SME in particular and also organically growing it's the full suite of services. It's occupational health services mental health services musculoskeletal services that we're looking to grow with. Specifically on talking therapies and what have you we're looking at the market seeing what's available but we're quite choosy about where we invest our time and what we bid for.
That makes sense. Thank you. Just one more you sort of previously mentioned that technology is quite a key differentiator in this sort of space. Did you have all that sort of technology in house and those capabilities that you can kind of leverage or is that technology platform something that you may look to acquire in the future? Have you got kind of everything ready to go?
Yeah. Our technology is really important and it's probably around five years ago. We've effectively insourced all of the development of our technology platforms because we see those as very very important to our business and a big differentiator for us. That's all delivered in house. We have an in-house corporate IT team but also an in-house development team that are constantly enhancing and developing our platform. There's nothing that we're here looking thinking we need to buy in that software platform. We've either got it already and developing it or we will develop it internally with our internal developers who know our market they know us they know the software that we use and how to get the best results from that.
Fair enough. T hank you.
Okay.
Chris Glasper from Singer. Can you just talk a little bit more about the margin dynamics that you're seeing at the moment? Obviously margins crept up a bit on a slightly lower revenue base. You say it'll dilute again with the M&A coming in but can you just give us a sense of where you expect margins to trend over the next few years and maybe just a little bit more color on kind of the cost you're now wearing in terms of the integration team etc. and how much that's costing you on an annualized basis?
Do you want to cover that off and I'll add too?
Yeah. Starting with your last question the integration and change team I would say that that team for us is sort of in the GBP 700,000 a year type range without looking exactly. That type of cost has come into our P&L or EBITDA should we say. Your first question in terms of the margin as I mentioned when I went through the numbers one thing that we're quite careful about is if we see a change in contracts and revenue we respond very quickly to manage our costs. We can do that both with cost of sales because we'll have costs that are directly attributable to contracts. We'll manage that quickly and redeploy people as appropriate and manage our recruitment or in our overheads. We're always looking at opportunities to drive efficiencies as well. That's how we've managed to ensure our margin was maintained this year or even slightly improved.
Your second question was that sorry around t he acquisition.
Just the dilution from the acquisitions and then how that might recurring cover over the course of the next three years- five years.
We have some slightly different acquisitions that we've made this year. All three are probably slightly different examples and scenarios. We've got Cognate in Ireland which is not an integration activity and they perform quite well and will continue to operate independently for the foreseeable with our guidance and support. That margin would stay as it is and they themselves have got their own improvement plans that we're supporting to improve it. However the other two acquisitions we've made would have been disclosed at the time both coming from other corporate groups were loss making prior to coming into our business. Care first has only just completed in June so it's quite early to really comment on it.
The first acquisition we made BHSF back at the end of January start of February we were very quickly able to see that once it came into our operation without the other corporate costs we're getting it into break even and profit. We would expect in the medium term for any contracts that came with that business to be delivered at our normal margin. The medium term could be say two years to get to there. That is partly because when we're looking at the businesses we're making sure that the contracts we're buying and the pricing are things that we could deliver at our normal margin once we've finished our integration activity.
At the macro level Chris obviously you've got that activity going on where we're increasing market share. Some of them might not be at quite our corporate margins and we're bringing them up to our corporate margins over time. Amongst that with our technology investments we're also looking at actually raising the bar of what the margin percentage is overall with productivity of our clinical workforce. The vast majority about 95% of our clinical workforce are employed. The more that we can improve our efficiency in that space obviously increases our margin which is a key focus for us from a technology perspective.
Over the years we've obviously invested in our central overheads things like the IT application developers etc. which of course will move a little bit over time as we gain market share and what have you but we don't expect those to increase anywhere near the scale at which we're going to be growing our market share. We'll get better overhead leverage as well. There are probably three or four different categories of margin evolution going on there over time.
Is there much in the way of kind of hard cost synergies you can take out from eliminating duplicate functions for example?
Yeah absolutely. Just take BHSF as a nice easy one in terms because it was effectively a corporate carve out. All of the corporate team just stayed behind with their remaining insurance business and that's completely been absorbed into Heidi 's finance team the HR team the clinical governance team. Obviously when you're acquiring a share purchase we might have to go through restructuring exercises and look at that but there are some good synergies that we think we can deliver through. That's part of the thing. When we're looking at these deals I mentioned how many OH providers there are in the U.K. we're obviously looking at the ones that fit us are going to be at the right multiple.
To your point Julie I've got the right contract base that we're looking for and exposure to things and also potentially have synergies which actually over time once we deliver those synergies will nudge down that implied margin that we've paid multiple that we paid for those businesses.
Great thank you.
Hi again. Sorry just on the UK Armed Forces contract can you just go into how the mobilization process is going and then also talk about how it impacts margins through that process and then once it comes on in 2028 as well please.
Yeah that's underway. That's all going well. We kicked that off in around April. In terms of a transition perspective that's a long lead in terms of that obviously with Serco and our partners in the UK Armed Forces a collaboration that's over the next two years or so setting up that first tri-service recruitment process there. For us we're on track with that. As we've mentioned previously we're going to have some transition revenues coming through over the next few years and that's service revenues wise. That's 18 months- 24 months out. In terms of once we get that in a position to go live we've got that in our outlook. Slightly lower margins than our corporate occupational health margins but it's an area that we'll look at.
Obviously a seven -year initial term is a long time and we'll obviously be looking with our partners to be delivering that more efficiently over time as you would imagine.
We will also look internally for opportunities to leverage overheads with that as well.
Any questions from online? No questions from online. Brilliant. We'll wrap up there then. Thank you very much for your time today coming here about our FY 2025 results. Thanks for your time. We'll close there.