Optima Health recently issued a positive trading update for the year to Mar-26, with revenue of ~£121m (+15% YoY) and adjusted EBITDA ~10% ahead of expectations, driving a 10% EBITDA and 16% EPS upgrade to our forecasts. Net debt of £94.4m was higher than expected, though this reflects the timing of the £100m PAM acquisition rather than any underlying concern. Integration is progressing well, with £1.3m of the £1.5m Year 1 synergy target already delivered, and new business momentum is healthy. With the MoD contract set to mobilise this year and a strong pipeline across the enlarged group, we see a clear path to EBITDA margin expansion back towards management's 20% target. We stay at BUY with an unchanged 253p TP and continue to view OPT as a core GARP holding.
