Q2 FY22 Quarterly Activities Report and Appendix 4C

Melbourne, Australia – Alcidion Group Limited (‘Alcidion’ or the ‘Company’) today releases its Appendix 4C for the quarter ended 31 December 2021 (Q2 FY22) and a business update detailing operational highlights.


  •  Signed largest contract, as part of a Consortium led by Leidos Australia, to deliver key capability for a Healthcare IT project for the Commonwealth of Australia – $23.3M TCV over 6 years
  • Q2 positive operating cashflow of $1.5M, driven by Q2 cash receipts of $9.9M with total YTD cash receipts of $16.4M
  • New contracted revenue sold in Q2 of $27.7M with $6.2M of that to be recognised in FY22
  • Acquired Silverlink PCS Software Ltd (Silverlink), positioning Alcidion to become a cloud-native, modern, and modular Electronic Patient Record (EPR/EMR) provider
  • Successful $55.0 Million capital raising via Institutional Placement and Entitlements issue to fund the Silverlink acquisition
  • At the end of Q2, total contracted revenue to be recognised in FY22 stands at $27.1M – up 25% on prior year Q2 (this includes $3.8M from Silverlink)
  • A further $1.9M of scheduled renewal revenue is expected to be converted to contracted revenue over the course of FY22
  • Cash balance of $18.9M as at 31 December 2021

Alcidion’s Group Managing Director Kate Quirke said, “Alcidion has delivered a positive operating cash flow in Q2 along with announcing our largest ever contract win with Leidos who are acting as prime contractor for a major project with the Commonwealth of Australia. In this contract Alcidion will provide the longitudinal healthcare record consolidating healthcare data from a range of predominantly Australian digital health providers. Q2 cash receipts of $9.9M, an increase of 125% on the same period last year, were driven by a significant quarter of sales that has seen continued endorsement of our technology and services.”

“We signed new contracts with Queen’s Hospital Burton – the first new ExtraMed contract since acquisition in April 2021 – and Sydney Local Health District, one of Australia’s leading health services, and an important reference site for Alcidion in the use of Miya Precision to support virtual care.”

“The well supported capital raise of $55.0M and transformational acquisition of Silverlink, one of the largest and few remaining specialist PAS providers servicing the UK NHS market, is pivotal to our strategy to expand our product offering and maximise our market opportunity. It affirms our commitment to the UK market while also providing the foundation for our modern modular Electronic Patient Record (EPR).”

“These results support our confidence in a strong full year as we head into what is typically a busier second half. We note however that the unprecedented pressure on our healthcare systems globally is impacting the speed of decision making.”

Financial update

Alcidion sold $27.7M of new contracted revenue in Q2 with $6.2M to be recognised in FY22.

The $27.7M in new contracted revenue comprises $15.4M of recurring revenue and $12.3M of non-recurring revenue. This includes the $23.3M initial contract value to deliver key capability for a Health IT Project for the Commonwealth of Australia.

At the end of Q2, contracted revenue able to be recognised in FY22 was $27.1M, comprising $23.3M of organic revenue and $3.8M of Silverlink revenue. This represents a 25% increase on the prior corresponding period (pcp). Contracted revenue only includes revenue (both recurring and non-recurring) from current signed contracts. It does not include the revenue from contracts that will renew during the next twelve months or are yet to be signed.

The Company generated positive operating cashflow of $1.5M for the quarter. Cash receipts from customers in Q2 were $9.9M, a 125% increase on pcp. This resulted in total cash receipts for the period of $16.4M, 52% higher than at the same time in the previous year.

The Company’s cash balance was $18.9M as at 31 December 2021 and reflects the consideration payments for the acquisition of Silverlink and the $55.0M equity capital raised as part of the Placement and Entitlement Offer.

As noted in item 6 of the Company’s Appendix 4C, payments made to related parties and their associates totalled $297K for the quarter. The payments relate to Directors’ remuneration.

Business update

Acquisition and Capital Raising

In December 2021, Alcidion acquired Silverlink, one of the largest and few remaining specialist Patient Administration System (PAS) providers servicing the UK NHS market.

The acquisition provides Alcidion with core PAS capability, expanding its overall product offering and positioning Alcidion to being able to offer a cloud-native, modern and modular Electronic Patient Record
(EPR) to rival major global incumbents. In addition, it expands the company’s UK presence to 38 NHS Trusts giving a ~26% market presence, while also expanding the addressable market.

The acquisition price of £30.0M ($55.5M) with a further £3.0M ($5.6M) subject to earn-out conditions being met, was funded via a $55.0M equity raising, comprising:

  • A placement to institutional and sophisticated investors of $30.0M; and
  • A 1 for 10.5 accelerated non-renounceable entitlement offer to raise $25.0M

Silverlink has forecast FY22 (30 April year-end) annual revenue of $7.8M from existing contracts (95%+ recurring revenue), generating EBITDA of $4.8M (62% EBITDA margin).

New Contracts Wins

As part of a Consortium led by Leidos Australia, Alcidion was awarded a contract to deliver key capability for a Healthcare IT project for the Commonwealth of Australia, specifically the provision of the Longitudinal Health record via Miya Precision. The value of the contract is estimated to be $23.3M over six years, which will cover the implementation and a subscription to Miya Precision. Further potential to take up Miya Observations and Miya Assessments and options to renew up to 15 years creates a possible Total Contract Value (TCV) for the contract with Leidos of approximately $50.0M.

Alcidion also secured a new three-year contract with Queen’s Hospital Burton in the UK for ExtraMed’s Inpatient Flow Manager (IPFM), the first new contract win following the acquisition of ExtraMed in April 2021. Queen’s Hospital Burton is part of the University Hospitals of Derby and Burton NHS Foundation Trust, one of the largest NHS trusts in the UK. A three-year contract extension was also signed for ExtraMed’s IPFM licence and support with Royal Derby Hospital, sister to Queen’s Hospital Burton, which has documented success in reducing length of stay using IPFM.

Finally, a new three-year contract with Sydney Local Health District was secured for the use of Miya Precision in supporting virtual care of acute diverticulitis patients by rpavirtual. Miya Precision will be the platform supporting virtual care across Sydney Local Health District capturing information from integrated devices along with patient entered information from the new Miya Care module. It will be a key reference site for Alcidion, highlighting the capability of Miya Precision to support virtual care and remote patient monitoring.

Board Updates

During the quarter, Mr Nicholas Dignam stepped down as a Non-Executive Director, effective 17 November, after having served for five years on the Board and as noted at the Company’s 2021 Annual General Meeting.

Ms Victoria Weekes was appointed as Chair of the Audit and Risk Committee to replace Mr Dignam.

Investor webcast

Alcidion Group Managing Director Kate Quirke will host an audio webcast with investors via Zoom this morning at 11:00am Australian Eastern Daylight Time (AEDT).

To register for the webcast, please follow this link:

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