Q2 FY2021 Business Update – Breakthrough sales quarter with milestone contracts signed

Alcidion Group Limited (ASX: ALC) today released its Appendix 4C for the three-month period ended 31 December 2020 (Q2 FY2021) and this business update.


  • $12.6M revenue added in Q2, 163% up on the prior quarter and 260% up on pcp (Q2 FY2020)
  • Revenue of $21.7M able to be recognised in FY2021 as of Q2 FY2021 (i.e. 6 months remaining in the year), already 17% greater than FY2020 full year revenue of $18.6M
  • Further $23.0M of sold revenue to be recognised out to FY2026
  • Milestone $11.3M five-year deal with South Tees Hospitals NHS Foundation Trust for Alcidion’s full suite of products and services including Miya Precision & Better’s OPENeP
  • Strong cash reserves of $12.5M as at 31 December 2020, strengthened by further receipt of $3.0M in early January 2021 relating to the South Tees contract
  • Other significant contracts signed or announced in Q2 FY2021:
    • NextGate – expanded reseller partnership to include UK and Ireland
    • NT Health – program management services contract extension
    • ACT Health – contracts for further integration services
    • NSW Health – extension to Child Data Hub (CDH) technical services contract

Alcidion Managing Director Kate Quirke said, “Building on an already strong start to the financial year, I am delighted to present a significant quarter of sales that was one of Alcidion’s best to-date. Our milestone contract and extension with South Tees NHS Trust is an important validation of our market-leading value proposition and full service approach in the UK, supporting the NHS’ digital transformation.

“We have made further headway in the UK in Q2 with our Miya Precision products continuing to gain traction with existing and potential customers, along with our ability to resell NextGate solutions as part of our portfolio of reseller products in the UK and Ireland.

“We have entered the second half of FY2021 in an advantageous position and look forward to building on the sales momentum of the first half. While we are carefully monitoring the COVID-19 situation in all markets – particularly the UK – we remain confident that with hospital protocols now in place at NHS hospitals, health IT procurement will continue close to normal. Furthermore, the situation continues to present an opportunity for Alcidion to implement our smart health IT solutions and drive a new standard of better, more efficient and safer care.”

Business update

During Q2 FY2021, Alcidion signed new contracts and renewals with a total contract value of $12.6M, a 260% increase vs the pcp (Q2 FY2020) and a 163% increase against the prior quarter (Q1 FY2021).  A total of $6.9M of the $12.6M revenue added during Q2 should be recognised in FY2021.

At end Q2, total contracted revenue able to be recognised in FY2021 was $21.7M, with $14.0M being recurring and $7.7M non-recurring. This is already 17% above the $18.6M reported annual revenue for FY2020, with six months remaining in the FY2021 financial year.

The revenue split between products, product implementation and services is as follows:

Over the next five years from FY2022 to FY2026, there is a further $23.0M of sold revenue able to be recognised, with $22.4M of this being recurring.

Q2 FY2021 was one of Alcidion’s strongest sales performances to-date. Material contracts included a milestone five year, $9.3M contract with South Tees Hospitals NHS Foundation Trust for Miya Precision and Better’s OPENeP, representing the largest Miya Precision contract signed to-date. This was quickly followed by a $2.0M contract extension, covering Smartpage implementation, cloud hosting, managed services and business change management services.

Additional contracts signed or extended in Q2 included a contract extension with NT Health for program management services, further integration services contracts with ACT Health and an extension agreement signed with NSW Health for technical services relating to integrating its Child Data Hub (CDH).

Since its appointment to the NHS’ £3 million Clinical Communications Procurement Framework for Smartpage in August 2020, Alcidion has seen further success with Smartpage. New sales of Smartpage included a five-year contract with Lancashire Teaching Hospital, the contract extension to include Smartpage at South Tees and early in January a contract with an existing customer, the Department of Health and Social Care for the Isle of Man, to add Smartpage to their existing implementation of Miya Observations and Assessments. This demonstrates the ongoing value of Alcidion’s appointment to the NHS procurement framework as well as the opportunity for Alcidion to cross-sell additional capabilities to support existing customers.

In November, Alcidion announced the expansion of its reseller agreement with NextGate to include the United Kingdom and Ireland. NextGate is the global leader in healthcare enterprise identification, with software products that help healthcare providers overcome the clinical, operational and financial challenges resulting from duplicate records and inconsistent data. The expansion will contribute to Alcidion’s UK growth strategy by broadening its competitive position as well as complementing its Miya Precision product suite.

Cash flow highlights

Cash receipts from customers in Q2 were $4.4M, excluding a receipt of A$3.0M from South Tees that was received on the first business day in January 2021 instead of as expected in late December. Operating cash outflows were $6.5M, $1.1M less than the previous quarter. Overall, Alcidion’s net operating cash outflow was $2.2M in Q2.

At 31 December 2020, Alcidion’s cash reserve was $12.5M. This cash reserve has subsequently been strengthened by the $3.0M receipt mentioned above.

As noted in Item 6 of the Company’s Appendix 4C Cashflow Statement, payments made to related parties and their associates totalled $269K for the quarter. The payments relate to Directors’ remuneration.

Investor webcast

Alcidion Managing Director Kate Quirke will host an audio webcast with investors via Zoom this morning at 9:00am Australian Eastern Daylight Time (AEDT).

Investors are invited to register for the webcast at the following link:

Registered participants will receive a confirmation email containing the Zoom access link and alternative phone dial-in details.