Alcidion Group releases H1 FY2019 financial results
Alcidion Group Limited (ASX: ALC) (the Group) has today released its financial results for the first half of FY2019 (H1 FY2019).
During the period Alcidion completed the acquisition of the MKM Health and Patientrack businesses and commenced integration of these newly acquired businesses. The Group now has a broader portfolio of products and services, a larger and more diversified customer base and an enhanced financial profile.
For the six months to 31 December 2018, total revenue grew nearly six-fold to $7.3 million compared to the prior comparable period (H1 FY2018: $1.3 million), a direct result of the contribution of the newly acquired business as well as new contract wins and renewals. New contract wins and renewals over the period totalled $23.4 million and included contracts with several large public health organisations such as Queensland Health, Alfred Health, NT Department of Health and ACT Health.
As at 31 December 2018, Alcidion had a total of $14.8 million in contracted revenues which are expected to be realised in the current financial year. The Group therefore anticipates reporting revenue for H2 FY2019 of at least $7.5m, prior to winning any new contracts. In addition, the Group has a further $27.4 million in contracted revenues to be realised over the next five years from FY2020.
Alcidion continues to transition towards profitability whilst making strategically important investments that will help drive future profitable growth. Reported Net Loss After Tax in H1 FY2019 was $0.6 million, an improvement compared to the prior year half net loss of $1.1 million. During the half the Group has invested to integrate the acquired businesses into the Group, further build the Group sales capability, introduce Alcidion’s products to the UK market and complete the Miya Precision product redevelopment. These investments have impacted profitability for H1 FY2019 but are required to build a foundation for growth and improve group profitability in FY2020 and beyond.
Alcidion’s closing cash balance as at 31 December 2018 was $1.3 million, down from the closing cash balance of $2.9 million as at 30 June 2018. This reduction reflects the payment of $1.5 million in cash consideration as part of the acquisition of the MKM Health and Patientrack businesses, with no further cash consideration being payable.
In H2 FY2019, the Group expects to rebuild its cash reserves through positive operating cash flows as it continues to grow revenues while prudently managing ongoing investment and controlling operating costs. The Board therefore does not anticipate any requirement for additional capital.
Alcidion also recently announced some important changes to the Board and Management team. As part of these changes, Mr Ray Blight has transitioned to the role of Non-Executive Chairman and Ms Kate Quirke has been appointed to the role of Group Managing Director and Colin MacKinnon has been appointed COO/CFO of the Group.
Ms Kate Quirke, Group Managing Director said,
“Alcidion has undergone a significant period of transformation, delivering significant progress in its first six months operating as a consolidated group. Revenues have increased six-fold on the comparable period and the Group has contracted revenue of $14.8m for FY19 and a further $27.4m in contracted revenue to be realised over the next five years.
In-depth training of the sales and marketing team, a focus on cross-selling across the larger customer base and new contract wins are testament to the progress we have made. We remain firmly committed to generating sustainable long-term revenue, transitioning to profitability and building value for shareholders.”
You can access the full Half Year Report here.