Solid start to FY2020 with significant contracts signed and investments for growth
- H1 FY2020 revenue of $8.2 million, 12.3% increase vs H1 FY2019
- Investment for growth underway in areas of sales, marketing and product development to capitalise on an increasingly favourable market opportunity in UK and ANZ
- Net loss of $1.8 million, as a result of investments made to accelerate operations in line with growth strategy
- $15.4M revenue already set to be recognised in FY2020, compared to FY2019 full year revenue of $16.9M with total sold revenue of $37.2M out to FY2025
- Cash reserves of $17.2 million, strengthened balance sheet from $16.2 million placement
- Miya MEMRe launched, following successful innovation Proof of Concept (PoC) at Murrumbidgee Local Health District (LHD)
- Important contracts signed including with private provider Healthscope, Dartford and Gravesham NHS Foundation Trust and our first NHS Global Digital Exemplar site, Taunton and Somerset NHS Foundation Trust
Melbourne, Victoria – Alcidion Group Limited (ASX: ALC) today released its financial results for the six month period ending 31 December 2019 (H1 FY2019).
Alcidion delivered revenue in H1 FY2020 of $8.2 million, a 12.3% increase on H1 FY2019. This increase is due to the added recognised revenue from several significant customer contracts signed over the past 18 months. Overall, the Company delivered a net loss of $1.8 million in H1, reflecting the investments made in line with the Company’s accelerated growth strategy.
To capitalise on a rapidly rising digital healthcare market, Alcidion is expanding its sales capabilities in the UK and ANZ. Lynette Ousby was appointed as UK General Manager, Sales and Business Development and a new sales executive to service the southern region of Australia and New Zealand was also appointed. From a product perspective, Alcidion continued to invest in R&D in H1 to maintain the competitive advantage of the Company’s technology platform and improve how it is deployed.
Alcidion signed or renewed contracts for products and specialist services with a total value of $6 million. New contract wins in H1 FY2020 included a project with Healthscope, Alcidion’s first contract with a private provider for data and analytics. A second data and analytics contract with Calvary Health Care was signed in January 2020, subsequent to the period end.
Other material contract wins included a $1.9M six-year agreement with Dartford and Gravesham NHS Foundation Trust for Better’s OPENeP solution and a $500K three-year deal with Taunton and Somerset NHS Foundation Trust for Patientrack.
In November 2019 Alcidion launched Miya MEMRe, the first locally developed fully mobile EMR solution, following its successful use at Murrumbidgee LHD as part of eHealth NSW’s innovation challenge.
As of 31 December 2019, total sold revenue contracted to be recognised in FY2020 was $15.4 million compared to $16.9M full year revenue in FY2019. Subsequently in January 2020 Alcidion added a further $1 million to be recognised in FY2020 with two additional contracts signed in the Australian market.
Alcidion finished H1 FY2020 with a significantly strengthened balance sheet after raising $16.2 million in an institutional placement in November 2019. Cash reserves were $17.2 million at end H1, including $7 million placed on term deposit.
H1 FY2020 cash receipts from operations were $9.2 million with a net cash outflow from operating activities of $1.6 million. Contributing to this outflow were investments made in accordance with Alcidion’s growth strategy and deferred payments of FY2019 UK taxes. Outflows relating to financing or investing activities included $972K in transaction costs relating to the capital raising and $238K final cash contingent payment for the acquisition of Oncall Systems (Smartpage) partly offset by $700K received from exercised share options.
In H2 FY2020, Alcidion expects expenditure to increase as further investments are made in sales and marketing, strengthening Group infrastructure in the UK and ANZ, and accelerating product development. Acceleration in the UK market is a strong focus in H2, with the Miya MEMRe platform to launch in the UK at the Health Rewired Conference in March 2020.
Alcidion Managing Director Kate Quirke said, “The first half saw significant contract wins contributing to a healthy level of sold revenue out to FY2025, as well as investments made in scaling up sales, marketing and product development to capitalise on an advantageous healthcare market globally. We are actively focused on ramping up sales and marketing investment in H2 as we accelerate growth and drive further adoption of our products and specialist health IT services.”
For further information, please contact:
Ph: +61 401 018 828
Ph: +61 439 162369
Alcidion Limited (ASX:ALC) has a simple purpose: to transform healthcare with smart, intuitive technology solutions that meet the needs of hospital and allied healthcare, worldwide. It offers a complementary set of software products and services that create a unique offering in the global healthcare market; solutions that support interoperability, allow communication and task management, and deliver clinical decision support at the point of care to improve patient outcomes. In 2017 Alcidion acquired Oncall System and its Smartpage clinical communication system. In 2018 it acquired the Patientrack bedside patient monitoring software and MKM Health, an IT solutions and services provider. These offerings now operate under the Alcidion brand. With over 25 years of combined healthcare experience, Alcidion brings together the very best in technology and market knowledge to deliver solutions that make healthcare better for everyone.
© Alcidion Group Limited 2020. Alcidion, Miya Precision, Miya MEMRe, Patientrack and Smartpage are registered trademarks. All other brands and product names and trademarks are the registered property of their respective companies.
This announcement is authorised for release by the Board of Directors of Alcidion Limited.