Pinned straw:
Updated calculation 12th Aug. 2025
My valuation Calculation from 3 weeks ago Just to clarify the projected Share Price $0.504 ( say an eps growth 12% pa)
The Intrinsic Value shown in your Google Sheet ($0.38) is the estimated true worth of AHC’s shares based on your forecasted financials and valuation assumptions.
https://hotcopper.com.au/threads/ann-austco-healthcare-trading-update-and-guidance-upgrade.8677109/
think, AHC should be able to scale up the model: support for over 5,000 healthcare facilities worldwide.
Unfilled Contracted Revenue Unfilled contracted revenue currently stands at $55.8 million, up from $50.2 million reported in February 2025. The increase reflects the addition of G&S Technologies to the Group since the last update, as well as continued strong operational performance, including a record revenue delivery of $13.2 million (unaudited) in June 2025. Amentco Earn-Out Adjustment The earn-out period for the acquisition of Amentco concluded on 30 June 2025.
Based on the strong performance of Amentco, Austco now expects a final earn-out payment of approximately $8.4 million, exceeding the previously accrued amount of $5.9 million. Under accounting standards, the incremental $2.5 million must be expensed through the income statement rather than adjusted through goodwill. While this will reduce statutory net profit as at 30 June 2025, it has no impact on EBITDA.
Austco retains the option to settle up to 50% of the $8.4 million earn-out in Austco shares, with the balance in cash. A decision on the option to settle is expected following on or around the release of the audited Full Year Results.
CEO Commentary Commenting on the performance, Clayton Astles, CEO of Austco, said: “FY25 was a transformative year for Austco. We delivered strong double-digit growth, successfully integrated acquisitions, and executed our strategy with discipline. Our ability to fund acquisitions through operating cashflow while maintaining a strong balance sheet reflects the resilience and scalability of our business model. With robust contracted revenue and momentum across key markets, we enter FY26 with confidence.”
The Company expects to release its audited Full Year Results and Appendix 4E on 26 August 2025. Authorised for release by the Board of Austco Healthcare Limited.
Austco Healthcare Limited (AHC) is an international provider of healthcare communication solutions, including nurse call systems, mobile communications, and clinical workflow management. Founded in Australia, the company has expanded its presence globally, with subsidiaries in six countries and support for over 5,000 healthcare facilities worldwide. Austco's competitive advantage lies in its advanced IP-based nurse call systems,
Chart shows a great trend here:
Return (inc div) 1yr: 81.40% 3yr: 54.60% pa 5yr: 40.97% pa
Under accounting standards, the incremental $2.5 million must be expensed through the income statement rather than adjusted through goodwill. While this will reduce statutory net profit as at 30 June 2025, it has no impact on EBITDA.
I'm going to nerd out a little bit here, but this is up there with lease accounting as an example of how bean counters can't get out of their own way. Initially you can provide for the earnout based off a balance of probabilities assessment and that doesn't go through the P&L (the other side of the entry is goodwill on the Balance Sheet), but a subsequent adjustment goes through the P&L? That doesn't make any sense to me. Dude, you got the acquisition accounting wrong, you should be able to fix it. Bean counters would argue that goodwill is sacrosanct and shouldn't be changed on a whim, but that ignores the fact goodwill gets impaired all the time - indeed a reduction in the earnout could be a catalyst for just such a thing. Statutory Accounting often never made a lot of sense to me.
The key takeaway is that it's a good thing they are incurring this expense, it means the acquisition is performing significantly better than they expected. It is cash (and maybe equity) but it's also one-off. Overall, an excellent result. It's impressive they held cash steady from 31 December, despite paying $7.4 million in May for G&S Tech in May and suggests they are converting EBITDA to cash efficiently. Order book up despite a record $13.2 million of revenue booked in June. What's not to like?
[Held]
Crackerjack guidance upgrade from AHC.
I'll have to thank @Wini for putting this one on my radar years ago now which I bought then soon after sold. About 18 months ago I realised the error of my ways and bought back in again. At the time this was a big step for me as I had not bought back into a company I had sold out of before. I managed to overcome that cognitive bias. Management seemed to have nailed the capital allocation thing, paying sensible multiples for acquisitions that are turbo charging growth.
Love it. Happy to hold this one.