Good morning, everybody, and thank you for coming, and welcome to our half-year results for Optima Health PLC. Today, you've got myself Jonathan Thomas, Chief Executive of the Group, and with me today is Heidi Giles, Chief Financial Officer of the Group, and agenda-wise, we will talk through - I'll firstly give you a brief recap and introduction to Optima Health, what we do, what our market looks like. I will then touch on our financial headlines. We'll then move on to our strategic progress outlook. I'll then hand over to Heidi for a little while to talk you through some of the financial slides in a little bit more detail, and then hand back to myself to wrap up and open up for some Q&A. Reacquainting you then with Optima.
So, Optima is the market leader in occupational health and well-being, underpinned by our proprietary technology and customer base that we deliver to. In a nutshell, what that means is we help the organizations that we work with get the best out of their people, and looking and advising with our experts on the impact of work on an individual's health and vice versa. So, that may well be improving the productivity of the workforce, where we deliver performance and attendance-based activities to support people to be successful in the workplace and get back to work.
It might also be helping organizations manage their risk in relation to health surveillance some of their employees who are exposed to hazardous substances, for example, and risks in the workplace, or also making sure that those employees are fit for the job that they're doing, in particular in safety-critical roles, so police forces, railway workers, etc., so that they can manage their risk. We also may well get involved in adaptations in the workplace, again, to facilitate productivity in the workplace for those employees, and also look at rapid access to treatment services to rehabilitate individuals and make sure they're fit for the job that they're doing. All of that is really important we see in the organizations and the market that we work in, and that's underpinned recently by the government-commissioned Keep Britain Working report that was recently done.
And the headlines from that, as you can see on our slide there, the cost of ill health in employers in the U.K. is GBP 85 billion, and that equates to around 150 million days lost to sickness absence annually, which is a 15-year high, and around four to nine days that are lost to presenteeism and adjusted duties and lack of productivity. In addition to that, the cost that was identified in that report to society and the state is GBP 212 billion, so an enormous sum of money. And I think the report, and we believe as well, calls out for more investment in this space and doing more.
As a result, the report indicates that spend on occupational health in the U.K. could increase and should increase to the order of magnitude of around GBP 6 billion a year, which significantly increases our target addressable market, which, roughly speaking, depends where you look, is about GBP 1.2 billion-GBP 1.4 billion as we stand at today. Optima is ideally and well- positioned to support and take the lead in that role. Capability-wise, we deliver to over 5 million employees across the U.K. and Ireland. We have 1,600 experts in our business, of which around 900 are directly employed clinicians, and that's augmented and supported by a network, a vast network of clinicians, as well as mobile screening units and clinical footprint across the U.K. to be able to deliver to our clients.
At Optima, we have a number of key differentiators and strengths and fundamentals which we believe position us really favorably to benefit from this. We've got comprehensive U.K.-wide sector, geographical, clinical coverage across the U.K., so we can deliver to any client anywhere, delivering any occupational health service, no problem, which we believe is unrivaled, and we do that underpinned by our proprietary technology. We have in-house delivery of that technology, which allows us to seamlessly deliver those appointments consistently, whether that be virtually, remotely, telephone-based, or in a face-to-face clinic, whether that be on our client sites or on our sites or in a mobile unit, so that's really critical to our delivery. Service excellence and clinical excellence is at the heart of what we do, so we deliver the full breadth of occupational health services.
So there's no requirement for one of our clients or customers or organizations to go anywhere else. They come to us, and we can do the whole suite of those services. And that's really critical that they have that seamless integrated service delivery we find. And then fundamentally, we are a profitable business. We're very cash generative, and we have contracted and recurring revenue streams which are underpinned by regulation in many instances, which allows that confidence to be able to deliver that cash and invest in our business. And we've done that through a number of areas, so from a technology enhancement perspective, our clinical workforce, our people, but also in M&A. So we have historically and will do going forward, we will originate and find good value-enhancing M&A, and we've got a great track record of integrating those in and delivering value from those.
And then underpinning that and an endorsement of that, we have a diverse and high-quality and well-balanced customer base who we serve and meet, as I've said, at their point of need in our delivery. Moving then on to our H1 2026 financial headlines, we're really pleased to report our revenue growth in the first half of the year. So that stood at 17%, so we're up at GBP 59.5 million of revenues, as planned, underpinned by some of the acquisitions that we completed earlier in the year and at the back end of last financial year, but also good organic growth in our core customer base. And touching on those two acquisitions, so in the half, we completed two acquisitions. One was Cognate Health over in Ireland, a great acquisition for us, the first one outside of the U.K. jurisdiction.
We've recently rebranded that business, Optima Health Ireland, to make sure that we get good leverage, and we are starting to support that business with group functions, sales expertise, etc., to be able to drive growth and revenue synergies from that acquisition. The second one is Care First, which was an EAP mental health business. We completed that again earlier in the year, and again, really good combination with our existing mental health and EAP business. But not only that, Care First came with around 1,000 clients, all of whom require occupational health services as well. So we're starting to have those revenue synergies. So that wasn't just a bolt-on, tuck-in, and improve margins of that business. There are also revenue opportunities and revenue synergies that we see from that.
And then we're really, really pleased with the traction that we're now getting in our new business space, building on our results from the last financial year. Into half one of 2026, we converted and signed GBP 1.9 million of annualized new business. But then really pleasingly, since the period-end close, we have either signed or preferred bidder a further GBP 8.3 million of new business. So really good performance there, underpinning our growth trajectory, in particular for quarter four of FY 2026 and also going into FY 2027. So we're really pleased with that growth trajectory there. And as we say on the slide there, in terms of that pipeline, it's, I think, pretty much very similar to what it was previously, so about GBP 11.5 billion. So at any given time, we've roughly got GBP 11 million-GBP 15 million of pipeline that we're working on and looking to convert.
Adjusted EBITDA for the half came in at GBP 8.3 million, so that's slightly down, so as we sought to mitigate cost increases as a result of the NI increases and PLC-related costs that we didn't have in the previous half, as well as some of those acquisitions that we previously identified would be slightly lower margins initially until we got those up to group margins, but we're really pleased with the momentum of our EBITDA as we move into half two of the year, and that's flowing down as well to our statutory operating numbers there, as you can see. Good step forward in our statutory profit numbers down at the bottom, GBP 2 million of statutory operating profit. The previous period obviously included some demerger costs from the process that we went through there.
It's also worth noting that a good proportion of the cost base in between EBITDA and statutory operating profit relates to amortization of acquired intangibles, which is obviously non-cash of circa GBP 3.4 million there. And all of that performance, as we've always talked about, feeds through then into that strong cash generation. So in the half we generated from operating activities around GBP 6.5 million of cash, so good strong cash conversion dropping through. And obviously worth noting there, the net debt position finished at about GBP 4.7 million net debt, despite us obviously paying out for acquisitions about GBP 6.6 million there. So really pleased with our results, and Heidi will touch a little bit more detail on that. So coming then to strategic outlook and progress.
We have strategic initiatives in flight and clear line of sight to get our business to GBP 200+ million revenue and GBP 40 million EBITDA. That strategic initiatives are in play at the moment. They're underway, and thankfully, they're not very complicated to understand. They figure in those four categories, as you can see there, underpinned by a fifth one along the bottom. Key for us will be organic growth, as we've touched on in terms of we had some good success in the previous financial year and also in the first half in that regard. We're focusing on GBP 100,000+ clients, which is our core bread and butter area, and we think we will be successful in.
And we will also be continuing our transition of the U.K. Armed Forces contract, which has been in transition now for around six months and anticipated to deliver service revenues from calendar year 2027, but financial year 2028, as well as, as I talked about, revenue synergies, both on new acquisitions such as in Ireland and Optima Health Ireland and Care First, but also through expanding our delivery in treatment services and other adjacent services and wallet share from existing clients. We see that as a key focus there, and we're on with that. The second is our operational transformation program. So we're really happy with we've focused significantly on growth since our IPO, and we're happy with the trajectory that we've got in place there and the cadence of what we're doing there.
But it's also really important for us to drive our operating margins as we progress, and we're not losing sight of that. We've kicked off over the summer an operational transformation program, which includes looking at clinical enhancements and how we operate there and improving that, looking at our operational efficiency and our administration and automation and efficiencies there, system enhancements, all to drive our operating margins, of course, and our margins, but also to differentiate and improve the quality of our service, which we believe will also support our organic growth objectives. Thirdly, we will continue, as we have done in the past, to look at M&A opportunities. We will look for those originating and discerning those value-enhancing deals, and we will leverage that platform.
We've got a great platform that we've built over many years to be able to do that, and a cookie-cutter approach, if you like, to be able to transition those acquisitions in, which allows us to drive further commercial advantage, economies of scale, and unlock synergies in our business, and then fourthly is our overhead efficiencies, so as we scale, we want to optimize those central functions that are really critical to supporting our business and making sure that as we grow, we don't scale in the same way from that cost base and we leverage even better from there, and underpinning all of that is our technology and digital transformation, so we will look to differentiate our services and also disrupt that market with our offering as we progress going forward, so we've got a clear line of sight on there.
We've put out those key targets and objectives, and we're really confident at progressing to those over the medium term. And to give myself and you some confidence on that, some progress in relation to that and what our plans are for the next period. So as we've touched on earlier, a lot of our FY 2027 and also 2027 growth targets and projections are already locked into some degree in terms of we've won those contracts and we're busy transitioning those. The biggest one of those being the U.K. Armed Forces contract. So we've been transitioning that now for around about six months. Once that is live, that will be upwards of GBP 20 million per annum in service revenues, which we anticipate to come through in FY 2028, as I've already mentioned.
We've then got strong new business momentum, GBP 1.9 million won in the half, a further GBP 8.3 million in the, what is it, two and a bit months since the period end, and also a continued robust pipeline of activity that we're continuing to work on, which we're really pleased with. Our M&A integrations are well progressed. I haven't got Cognate on there, so we've done the rebrand there from a Cognate perspective, and as I talked about, we'll be focusing on revenue synergies in that regard.
But the ones that we are bolting into and integrating into the U.K. business, which was BHSF, which we did in the previous financial year, and Care First, both are profitable in our hands and are now well on the journey to being completely integrated into our business, which should be complete in quarter four of FY 2026, and we'll be getting those to corporate margins as we run right out of FY 2026. As I touched on, our transformation program that we properly started over the summer, focusing on our operational efficiency, clinical enhancements, and our central functions efficiency, are well scoped, underway. There's work streams going on those as we speak, and as you can see in the next period, obviously at the time of writing in terms of we're planning from that operational transformation program to deliver a step change in our operating margins.
To support that, to make sure this isn't a side-of-desk activity and it's a key priority, we've brought in some new hires to support us with that. We have a Transformation Director who is on board and started and a Chief People Officer to support, who we brought in to support that activity, and to break that down in terms of the probably two key components, if you like, so the operational efficiency, that business case quantification and analysis is underway at the moment. We've got a good view of that, and we've got deployment plans where we're going to be starting to deploy that in the next calendar year.
And then from a clinical enhancements perspective, again, really important that we get that right and that it's fully integrated into our technology platform, that that's seamless for our clients from a user experience perspective, but also from our clinicians that are delivering. So as you would imagine, we've done a number of feasibility studies and pilots to get to the right outcomes for that. So we're seeing improved user and patient experience from that, improved consistency and quality of the reports that are coming out of our clinicians, and also roughly 20% time saved to be able to complete those assessments and reports. So as I said, that technology design is we don't deliver point bitty solutions at Optima. That's been designed and developed into our core proprietary systems, and will be seamless for those clinicians and our customers alike.
And we will have a phased deployment of that from half one of FY 2027 through into our numbers. And then again, in terms of from a bread and butter perspective, we will convert and transition our new business wins, including the U.K. Armed Forces and the GBP 8.3 million of business that we're preferred bidder at or won since the new year. And we'll continue to originate, source out really good value-enhancing M&A and get those delivered and integrated in like we have done in the past. So yeah, we're really positive in terms from our outlook perspective. There's a number of those initiatives to get us to our medium-term goals, which are underway, and I'll hand over to Heidi now to talk us through some of the financial results.
Thank you. Okay, so I'm going to go through the financial results in a little bit more detail. Johnny' s touched on some of the highlights, so we'll look at those again. So first of all, just looking at the statement of comprehensive income. So if I can draw your attention right at the top of the page to the revenue figure, you can see that revenue for the first half was GBP 59.5 million, and that's a really pleasing 17% growth compared to the same period in the prior year. Now that growth was supported both by the acquisitions we've made during this year and also by underlying organic growth of about 3% on our contracts over GBP 100,000 per year. So that's a really pleasing step forward for us. Also in that same top section of the statement of comprehensive income, you can see that we've made a provision for the procurement challenge that we previously disclosed.
And then when you look at the cost of sales, that has increased compared to the same period in the prior year. So that increases both to support the additional revenue that we have delivered, and on top of that, that increases in national insurance and relevant wages that we've faced. As a result of those cost changes and the increased revenue, you can see that pleasingly our gross profit has actually increased and is GBP 18 million for the first half of financial year 2026 compared to GBP 15.8 million in the same period in the prior year. Looking down at profit from operations, as Johnny mentioned previously, really pleasingly that's increased up to GBP 2 million in the first half of this year. And that improvement has also been supported by a reduction in our exceptional costs in line with plan, as we've discussed previously.
Then, if you just cast your eyes down to the bottom of the page, the adjusted EBITDA. So that has slightly decreased first half of this year compared to first half of last year to GBP 8.3 million. But that decrease is really attributable to additional expenditure, which we were expecting in this period. So to look at that additional expenditure, National Insurance and Real Living Wage cost increases amounted to approximately GBP 1 million in the six months. The new costs of being a PLC listed business were approximately GBP 400,000 in this period. And also, as we've previously mentioned, the integration and change team of GBP 300,000, we have moved them from the previous classification of exceptional costs, and they're now treated as a business as usual cost, and that was from 1st of October 2024.
So actually, you can see there's quite a lot of additional costs that we have borne in this period, but we've managed to maintain our EBITDA with just a small adjustment following that. And then just finally, in the bottom section of that sheet, you can also see a list of amortization and depreciation charges, and those are pretty much consistent with the same period in the prior year, which is in line with our expectations, so no big movement. Just talking a little bit about exceptional costs and our classification of them. So in the first half of this year, you'll see we've got GBP 0.6 million of exceptional costs. That is made up of two buckets, really. The first is GBP 0.2 million in relation to the acquisitions we've done.
That GBP 0.2 million is really specific external advisor and legal costs that we've incurred during that acquisition process when we've needed expert support externally. The second bucket there of GBP 0.4 million, these are integration costs to do with the acquisition. So as we're integrating them into our business and to get them up to the corporate margins. So the type of cost that we would see in that bucket would be redundancy costs where we've had to carry out a restructure during the integration and where we've got a dormant site or duplicate systems that we're not using until we're able to exit those following the integration. In terms of general classification of exceptional costs, we've mentioned previously we've kept our integration and change team. They're really key to our business. They support us with transitioning new clients and integrating M&A once we've acquired the business.
That cost is no longer classified as exceptional. So as we've said previously, from the 1st of October 2024, that cost is in our business as usual cost. It's not an exceptional. However, as per the buckets I just talked about, some acquisitions we carry out might necessitate the use of external expert advisors, and in those cases, that would be classed as exceptional. Redundancy costs on those integrations continue to be classed as exceptional. And then the one additional area just to touch on is Johnny has mentioned about our transformation programs that we're going into and the benefits those are going to deliver.
There will be some additional costs during that process, and where we will class as exceptional costs, where we expect it to be incurred for a defined period of time and then exit the business supporting that transformation and where it's going to create a benefit, so that will be limited to those areas. Just moving on to the statement of financial position, so we're really pleased to present again a well-positioned and stable balance sheet. Our net assets at 30th of September 2025 was GBP 169.6 million compared to GBP 168.1 million at 31st of March 2025. When you look down the statement of financial position, you'll see that the trade and other receivables have increased from the previous year-end to GBP 23.5 million. That increase is due to two areas, really.
The first being the balances we've acquired through the acquisitions that we've completed and the second being the provision we've made for other operating income. In a similar nature, you'll see that trade and other payables have also increased compared to the year-end, and again, that is mainly due to the balances we've acquired through the companies that we've acquired during the year, and then when you look at the net debt and cash, which Johnny did touch on, so we ended the previous financial year back in March with GBP 2.2 million net debt, and at the end of the first half, 30th of September, that had increased slightly to GBP 4.7 million, so that's an increase of 2.5 million. However, as we've mentioned, during that period, we spent approximately GBP 6 million on the acquisitions of Optima Health Ireland and Care First.
That just shows that we really have been generating cash and funding a lot of that acquisition out of the cash we generate in the period. And then just a bit of a focus on cash flow and net debt. Really positively, if you look at our net cash generated from operations, that was GBP 6.5 million in the six-month period. That's actually a GBP 6.4 million increase compared to the same period in the prior year when it was just GBP 0.1 million. So that's really pleasing. When you look at some of the lines in that section, the working capital has seen a slight increase of GBP 1.3 million. Now, that is down to a GBP 1.9 million increase in trade payables, partly due just to the timing of when payment runs fell at the end of the period.
A small increase in customer-related deferred revenue, but that is just a timing movement that will change across different periods, and a GBP 1.1 million increase in prepayments. Now, we always expect that in the first half of the year as there are a handful of quite large invoices that we pay every year at the start of the financial year and it unwinds during the year, so that's a normal timing difference we see at the end of every half one, and then also the provision that I've mentioned for the procurement challenge, and then another line that you'll notice in there is the VAT movement. VAT has increased by GBP 0.4 million. That is purely as a result of, as our revenue increases, the amount of VAT we pay increases and the amount on the balance sheet increases, so that's linked to the positive revenue increase.
One other thing within net cash generated from operations I wanted to call out is that following the acquisitions, our credit control team has been working really hard during this period, and they've managed to get our average debtor days down to 28 days over the six months, and that's actually a really positive link into our cash generation because our standard terms that we seek from customers are 30 days, which is really good. Once in a while, we need to accept slightly longer terms in a tender, or alternatively, with some large customers, we manage to get shorter terms, but to get that down to 28 days is really pleasing, but within any normal period, that could fluctuate between about 28 and 35 days, so it is possible in future periods that that could slightly increase in a different scenario and use a little cash.
And then just so moving down from the net cash generated from operations, you'll just see that the other large cash movements we have are our lease repayments of about GBP 0.7 million, the interest on our facility of GBP 0.5 million, our net CapEx of GBP 1.8 million, which is in line with the expectations we set previously, and of course, the M&A activity that we mentioned for GBP 6 million. And so when all that comes together, that shows the story of our net debt moving from GBP 2.2 million at year-end through to GBP 4.7 million now, which, again, just to reiterate, is a really good result because we've made acquisitions of GBP 6 million in that time, but only increased our debt by GBP 2.5 million. Okay, thank you.
That's brilliant. Thank you very much, Heidi. So to summarize that before we open up for Q&A, just to recap there. So Optima is the U.K. leader by size in corporate health and wellbeing, and we've got an excellent platform that we think is differentiated and that allows us to be able to continue to sustainably grow our business. We've got a large and growing and attractive market, as you've already heard, and we see that as only getting more favorable by the day with some of those dynamics that are changing. We've got great momentum, as you can see from our numbers, from a new business perspective, GBP 1.9 million won in the half, a further GBP 8.3 million won since the half has ended, and a robust pipeline for us to continue winning more new business and growing organically.
And that growth in our outlook and our numbers is underpinned by, as we said, won contracts, the largest of which being the U.K. Armed Forces, which we anticipate to add north of GBP 20 million per annum in revenues once that is live from a service perspective, but also as we win and convert more new business. We've got some transformation initiatives that are underway, which I've talked about there, which we believe will deliver a step change in margins, as we talked about on the previous slide. Getting to GBP 200 million revenues, GBP 40 million EBITDA, and up to 20% margin is our objective. And to augment and accelerate that, we've got a good pipeline of opportunities available from an M&A perspective, which we think will accelerate growth and we will be able to drive to our own corporate margins.
So all of that results in us being really, really confident in our outlook from an FY 2026 perspective, but also from a medium-term outlook and targets perspective. We will close there and open for questions in the room first, I think. Is that right? Perfect. Julie Simmonds.
Julie Simmonds, Panmure Liberum. The step up in the new contracts since the year-end is really great. Is there a particular reason as to the timing of the step up and sort of how many contracts does that include? Is it sort of one big one and a number of small ones?
Yeah, so I think we've always said, Julie, so the conversion of those contracts is not always uniform in nature of how many are through and how many convert. I think it's either the last one or the previous one. We were open and said, actually, conversion has been a bit slower in this half than we would have liked. And conversely, there's been an influx of stuff. So there was nothing wrong with the underlying market dynamics or what we were doing or what our service was previously. It just happened that it fell in a different six-month period to the other. So it's a good mixture in there. So there's some larger contracts in those wins. There are also some smaller ones, but they're all in our sweet spot range of between GBP 100,000 per annum and GBP 5 million-GBP 6 million per annum type deals. So right in the sweet spot.
Thank you. And then just on the sort of government papers that have come out on Keep Britain Working , how do you see Optima fitting into that? And what are you doing to get a bigger bit of that market?
Yeah, so we're already, I mean, the good thing is we're already doing a lot of what's advised in that paper with some of our clients already. So that's already in play with a lot of our clients, and they see the return on investment and benefit from that already. We're engaged with the DWP in relation to this. So we've got conversations underway about how we take a leading role in supporting the design of what the workplace health programs look like in the future and how those are delivered. So yeah, we're actively in the room and part of the conversation to be able to drive that initiative.
Lovely, thank You.
Chris Glasper from Singer . Just a question really on the transformation program. You've started incurring a bit of cost around that. So just question really on how much you expect to incur as cost in total and then what the payback on that is, I guess, as much as anything.
Yeah, so and that's not all new costs coming in there, Chris. So yes, there are some additional costs that we brought in, the Transformation Director, a Chief People Officer, etc., that are in there. But this is also more about repositioning some of the investment and capital expenditure that we already spend and really focusing on that on some of those initiatives. Have we guided Heidi in terms of the rough numbers of spend? But we're not talking millions and millions and millions. It would be sub 1 million a year would be my anticipation of that.
And for a finite period of time, not forever, which we will either be capitalized or be exceptional nature in cost, but we'll very clearly pull those out. And then in relation to the return, we will probably guide more in terms of in the new year on this, but ultimately those are underpinning our medium-term objectives, Chris. So you can see obviously our growth trajectory and you can figure out how we would do that from organic growth and M&A, but actually moving from where we are today at roughly 16.5%, help me there, Heidi, to 20% margin is kind of the differential which we think the return on that will be.
Timeframe to get there is what, three to five years?
From a medium-term targets perspective, we will be delivering, well, in certain areas, we're already delivering some of those cost efficiencies and already starting to come through. Some of the more chunky delivery is starting to come through in the next financial year, and obviously we'll phase deliver that in there. So yeah, certainly by three years out, you'll be starting to see some of those benefits absolutely coming through in run rate and LTMs and what have you.
Great. And then just a quick question on the pipeline. How much of that would you expect to win? Is it still around 50%? Is that your typical win rate?
So we are typically winning 50% of everything that we bid for from a new business perspective. So in any given period, yeah, roughly speaking, we would expect to convert about half of that.
There's no real change to the competitive landscape.
Not materially. So they're the same group of players that we compete against in various areas and what have you. So yeah, we're not seeing dissimilar win rates to what we have historically. And if anything, we hope our differentiation of our platform further enhancement actually increases that win rate percentage.
Great, thank you.
Yeah, Adam MacArthur from Cavendish. Yeah, so Ireland, obviously establishing a presence there. Just trying to kind of get a feel for the sort of size of the prize that you're going after. I know you've talked about the GBP 1.2 billion U.K. occupational health space, but what's there to kind of go after in Ireland? Now you've set up a base there and then just the competitive landscape there and when your kind of competitors of PAM have got some presence there. What's the sort of competitive landscape like out there as well? Is it sort of four big players including yourselves now?
Yeah, so similar. So you've got ourselves, you've got PAM own a business called CHI over in Ireland, and then there's Medmark and then a number of fragmented and smaller players in the mid-market there. So for us, we see a couple of opportunities. Winning market share in Ireland from the competition, of course, but also introducing new services. So what we're seeing is in the U.K. and in the core Optima business, we've got a whole load more services and scope of services than what is currently delivered to that customer base in Ireland. So we also see being able to, one of the benefits of joining up those businesses is to be able to introduce services that are ready-made and can be lifted into Ireland, into existing customers to grow that revenue share is also a good opportunity.
Obviously, it's a smaller headline market than the U.K., but we are about EUR 9 million or so in revenues in Ireland, and you can easily see us growing that with some good focus around growth.
Great, thank you. And then that's sort of on the second bit or my second question, sort of just on, again, on the M&A. I think your little pillar on slide eight, you've talked about sort of in the medium-term consolidation of the U.K. market. I think Johnny mentioned there, obviously Ireland's a bit fragmented, but kind of looking ever afield. I know you guys might want to conquer the U.K. first, but were there any other territories or regions outside of the U.K. where you could land yourself into sort of that M&A activity at some point?
Could be. So as you say, Adam, our focus is on U.K. So whenever we're looking at an M&A opportunity, we first and foremost look at, is it going to be value enhancing to our shareholders and increasing value? So we think there is a lot of track record and opportunity, track ahead of us from a U.K. perspective to continue with that. And we've already got that U.K. platform to be able to really efficiently bring those in, bolt them in, drive them to our margins and continue to grow. That being said, there are opportunities out there, in particular in Western Europe, for us to look at. And we've done quite a bit of research around those markets if and when we decide that we might want to enter them. Obviously, establishing a presence in the EU and Ireland obviously would help us catapult us into that if we were to look at that.
But U.K. is absolutely the focus for the time being.
Thank you. And finally, probably sort of a bit more immaterial, but you've talked previously about breaking into sort of some of the NHS trusts with your sort of technology platforms. Just wondering how progress is sort of going there. Is it still just kind of in the short- term, don't really think about it, but longer- term opportunities might sort of go on there?
Yeah, there's opportunities there as well, Adam. So I think you're referring to our DART, musculoskeletal triaging tool there. So yeah, we had good success at getting that into the NHS. So that is in, don't quote me exactly, five or six NHS trusts at the moment, predominantly in the Northwest of England and performing really well.
So we have got some investment behind that around how do we go and grow that into the ICB structure and the NHS trust structure. But that's a relatively small component of our business at the moment, both in revenues and investment in relation to size of the prize elsewhere. That's a fantastic tool in the NHS and one that we think would be valuable for us and for the NHS, but it's probably not as exponential on the growth curve at the moment for us as other opportunities that we're looking at.
That makes sense. No, thanks very much.
It's okay.
Thank you. Heidi Palmer from Canaccord. I just had a question, sorry, in terms of, I guess, follow-on in M&A. I appreciate it's quite a busy market. So what's your competitive edge for why targets would want to come into Optima Health? And then also, could you speak to some of the integration process, how disruptive it is, whether you aim to keep on the management teams, etc.?
Yeah, that's a good question. So we've got an extensive track record in this market of doing M&A and doing it well and bringing it into Optima well. So for a lot of the, if you think about it from a people perspective, that is attractive for people to come into Optima and sell their businesses into Optima because there are much broader opportunities usually for them as part of the broader Optima. If I look at my management team, for example, now, that isn't just what was a core Optima. That is a mix of acquisitions that we've brought in. So we've got people from our TP Health acquisitions.
If I go even further back, we've got people from OH Assist and Optima acquisitions and what have you have all brought skills and expertise and taken on broader remit and roles as the broader Optima has grown. So that's really attractive. And then secondly, from a customer and services proposition perspective as well, it's also favorable and better. So from a customer perspective, they come in from usually a smaller provider and they're getting better service, better SLAs, better service provision and breadth of what we're able to offer them, better IT systems, etc. So again, pretty favorable from that perspective. And yeah, to answer your last part of your question, I've learned a lot over the years about how to do M&A successfully and bring it in successfully. And yeah, not everybody stays on in terms of from a management team perspective.
Of course, they have different reasons for wanting to sell their business. Of course, they have. But we're pretty good at bringing those in now relatively seamlessly and also quickly and efficiently as well there. And I think that's borne out. Just take the two of the three deals that we've just recently done, BHSF and Care First, for example. There was no M&A process. Those were bilateral deals that we did with those respective vendors and sellers. So yeah, we've got a good reputation in the marketplace for consolidating the market from an M&A perspective. And we know what those opportunities are and they come to us as well. And yeah, we often avoid competitive processes in that relation.
Thank you.
Okay. No questions online? Okay. Lovely. Well, thank you very much, everybody, for coming today. Hopefully, that's been insightful, tell you where we're up to on our progress. As I say, to reiterate, we are really pleased with it ourselves and also looking ahead, really confident of our FY 2026 outlook and also those medium-term targets that we've articulated as well. Thank you very much for your time and we'll close there.