Alcidion Group (ALC) Q4 2024 earnings summary

Executive summary

• Selected as preferred supplier for North Cumbria Integrated Care NHS Foundation Trust's Electronic Patient Record (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, valued at AUD 4 million.

• Achieved record quarterly cash receipts of AUD 18.6 million in Q4 FY24, up from AUD 17.6 million in the prior period.

• Positive operating cash flow of AUD 5.6 million in Q4 and AUD 4.3 million for H2 FY24, reversing earlier outflows.

• 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

• FY24 unaudited revenue expected between AUD 37–37.5 million, with 74% recurring product revenue.

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

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

• Annualized cost savings of AUD 6.4 million achieved, with Q4 staff costs reduced to AUD 6.3 million from AUD 8.1 million in Q3.

• FY24 operating cash outflow of AUD 7.1 million, impacted by a Q1 outflow of AUD 8.1 million.

Outlook and guidance

• 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.

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

• Ongoing tender activity in ANZ and UK, with further updates expected at full year results.

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