Optima Health Reports Strong Revenue Growth and Progress on Transformational PAM Acquisition

Optima Health has put out a full year trading update that reads like a business moving up a gear, but with a bigger debt load as the price of getting there. Revenue is expected to come in at approximately £121 million for FY26, up 15% from £105 million in FY25, while adjusted EBITDA is now expected to be about 10% ahead of previous market expectations.

The headline story, though, is the £100 million acquisition of PAM Healthcare, which completed right at the end of the financial year on 26 March 2026. This is the sort of deal that can materially reshape a company, and management is clearly pitching it as transformational rather than just another bolt-on purchase.

Optima Health FY26 trading update: the key numbers investors need to know

Metric	FY26 / Latest	FY25 / Comparison
Revenue	Approximately £121 million	£105 million
Revenue growth	15%	Not applicable
Adjusted EBITDA	Approximately 10% ahead of previous market expectations	Not disclosed
Other income	£4.7 million	Not disclosed
PAM acquisition value	Approximately £100 million	Not applicable
Annualised cost synergies delivered by 1 June 2026	£1.3 million	Not applicable
New business annualised wins	£10.8 million	£27.2 million
Net debt excluding leases at 31 March 2026	£94.4 million	Not disclosed
Cash balance	£21.6 million	Not disclosed
Debt	£116 million	Not disclosed

Optima Health revenue growth and EBITDA upgrade suggest a strong FY26 finish

On the face of it, this is a good update. Revenue of approximately £121 million is in line with market expectations, which means Optima has broadly delivered what investors were already hoping for. In small-cap land, hitting expectations matters more than it sometimes gets credit for.

The more encouraging line is on adjusted EBITDA. EBITDA is a profit measure before interest, tax, depreciation and amortisation, and “adjusted” means the company strips out certain items it thinks distort the underlying picture. Optima says FY26 adjusted EBITDA should be approximately 10% ahead of previous market expectations, which points to stronger profitability than the market had pencilled in.

That matters because it suggests the business is not just growing sales, but doing so with decent operational discipline. When a company is also integrating acquisitions, stronger-than-expected EBITDA gives investors a bit more confidence that management has a handle on execution.

The £100 million PAM acquisition is the real game-changer in this Optima Health update

Optima completed the acquisition of PAM Healthcare on 26 March 2026 for total cash consideration of approximately £100 million. Management describes PAM as highly complementary and synergistic, and based on the RNS that looks fair rather than promotional fluff.

PAM is described as one of the UK and Republic of Ireland’s leading occupational health and wellness service providers. For Optima, that means more scale, broader capabilities and a wider geographic footprint. In practical terms, it should make the group more relevant to bigger clients who want a larger provider with nationwide reach.

There is also early evidence that the integration is not stuck in PowerPoint. Optima says annualised synergies of £1.3 million had already been delivered by 1 June 2026. “Annualised” means the savings run at that pace over a full year, rather than meaning £1.3 million has already hit the bank since completion.

My read is that this is one of the strongest parts of the update. It is still early days, but companies that can point to synergies within a couple of months of completion usually have a clearer integration plan than those still talking vaguely about opportunities six months later.

Optima Health net debt of £94.4 million is the trade-off shareholders cannot ignore

The obvious downside is the balance sheet. Net debt, excluding leases, stood at £94.4 million at 31 March 2026, made up of £21.6 million of cash and £116 million of debt. That is a chunky figure for a business of this size, and it is the part of the update that should stop investors from getting carried away.

To be fair, the company explains why. PAM was acquired just before year-end, so the period-end balance sheet captures the funding impact of the deal. Optima also says net debt had reduced by the end of May after repaying the £30 million shareholder bridging loan linked to the acquisition, using proceeds from the underwritten Open Offer that completed on 24 April 2026.

An Open Offer is a way for a listed company to raise fresh equity from existing shareholders. It helps relieve pressure on the balance sheet, but it also means shareholders have effectively helped fund the acquisition. The exact end-May net debt figure is not disclosed, so investors will need to wait for the full results in August 2026 for a clearer picture.

So, the debt is manageable based on the tone of the update, but it is still the key risk. If integration slips or trading softens, leverage becomes a much bigger issue very quickly.

New business wins fell sharply on the Optima-only measure – and that is a watchpoint

One line in the RNS deserves more attention than it might get at first glance. New business annualised wins in FY26 were £10.8 million for Optima only, down from £27.2 million in FY25.

That is a steep drop, and it is not something I would brush aside. Yes, the company says there is a strong pipeline of new potential opportunities across the enlarged group including PAM, and yes, the comparison is for Optima only rather than the combined business. Even so, a lower level of new wins can matter because it gives clues about future organic growth.

In other words, the acquired growth story looks strong, but the underlying sales engine needs watching. Investors should want to see that pipeline turn into actual contract wins over the next few reporting periods.

The £4.7 million procurement matter adds profit support, but details remain limited

Optima also recognised £4.7 million of other income relating to a previously disclosed procurement matter. The announcement does not explain the matter in detail here, so the nature of that income is not disclosed in this update.

That does not automatically make it a problem, but it does mean investors should be careful not to treat every bit of the profit improvement as purely recurring operational progress. Other income can be useful, but it is not the same as repeatable revenue growth.

Optima Health medium-term targets look more believable after the PAM deal

The group reiterated its medium-term targets of £200 million of annual revenue and £40 million of adjusted EBITDA. Before PAM, those targets may have looked ambitious. After PAM, they look more realistic, although still dependent on successful integration and continued client demand.

This is why the market will probably focus less on the FY26 number itself and more on what the first full year of the enlarged group might look like. Optima now has greater scale, broader services and a stronger presence across the UK and Ireland. Those are all ingredients that can support a higher-quality business over time.

What this Optima Health trading update means for retail investors ahead of August results

Overall, I think this is a positive trading update with one clear caveat. The positive side is easy to see: revenue growth of 15%, EBITDA ahead of expectations, a major acquisition completed, and synergies already being delivered. That is a decent package.

The caveat is balance sheet risk and the softer Optima-only new business win figure. Those two points do not wreck the story, but they do mean this is not a simple “buy growth and relax” situation. Investors will want more detail in August 2026 on PAM integration, debt reduction and whether the enlarged pipeline is converting.

If Optima can show clean execution from here, this acquisition could prove a very smart move. If it stumbles, the debt will make the market much less forgiving. Right now, the update tilts positive – but with a firm note in the margin saying execution matters.