Alcidion Group (ALC) Q4 2024 earnings summary

Executive summary

• Selected as preferred supplier for North Cumbria Integrated Care NHS Foundation Trust's EPR system, with an anticipated 10-year contract valued at AUD 30–40 million, pending finalization.

• Signed a new 5-year partnership with Hume Rural Health Alliance in Victoria, covering 15 hospitals and focusing on patient flow and virtual care.

• Secured a $23.3M, 8-year contract extension with South Tees for Miya Precision EPR, with options to extend to $54M over 15 years.

• Q2 FY24 new total contract value sales reached $21.8M, with $0.7M to be recognized in FY24.

• Went live with new deployments at Hampshire Hospitals (Emergency Department module), Bolton NHS Foundation Trust (Flow), and Dartford (Medications Management and Miya e-Noting).

Financial highlights

• Q4 FY24 positive operating cash flow of AUD 5.6 million; H2 positive operating cash flow of AUD 4.3 million.

• Q2 cash receipts from customers were $8.7M, a 28% increase year-over-year.

• Cash balance at 30 June 2024 was AUD 11.8 million, with no debt.

• Q4 contract sales totaled AUD 5 million, with AUD 900,000 recognized in FY24; included a AUD 1.7 million renewal with NSW eHealth.

• Record Q4 cash receipts of AUD 18.6 million.

Outlook and guidance

• Several opportunities progressing into procurement selection stages, with optimism for future contract wins.

• Sold and renewal revenue for the next five years (excluding FY24) is $126M, with negligible customer churn.

• Approximately AUD 130 million in contracted and renewal revenue to be recognized over the next five years, excluding upside from expansions and the proposed North Cumbria contract.

• Committed to profitability, with further details to be provided at full-year results.

• Cost base tightened in H1 FY24, with redundancies and unfilled roles, resulting in $2.4M annualized savings and $1.2M impact in H2.