Alcidion Group Limited

ASX:ALC

Alcidion Group Limited

ASX:ALC
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$0.105 (-4.5%)
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#19
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53
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Forum Topics ALC ALC Quarterly update

Pinned straw:
Seymourbutts
Last edited a month ago

ALC out with their quarterly update ths morning.

Here's my summary of their summary:

  • 8.2 million in new contracts signed for Q1 FY26, mostly recurring revenue (92%).
  • Operating cash outflow reduced to $0.6 million (from $3.9 million last year) - big tick.
  • Cash receipts rose to $8.4 million, ending the quarter with $16.4 million cash and no debt.
  • Contracted FY26 revenue reached $36.3 million — Alcidion’s strongest Q1 on record.
  • Company reaffirmed guidance for positive EBITDA and operating cash flow for FY26


Q1 cash receipts are typically a slow start for ALC, however this is a circa 30% increase on both FY24 & FY25 Q1s. Kate has noted this in her comments that this strong start has set the company up for the remainder of the FY. Language suggests that they are focusing on expanding existing contracts through additional product offerings, sounds simple but you'd be surprised how difficult this is to acheive.

Still a holder of ALC - next couple of updates are make or break for my thesis. In saying that, I've probably already succumb to thesis creep on this.

jcmleng
Added a month ago

Discl: Held IRL 0.81% and in SM

Adding my notes after listening to the webinar recording.

In short, a good, positive update for what is a seasonally quiet sales and cashflow quarter: 

  • Good above trend improvements in cash receipts, cash outflows (material improvement) and Quarterly New Sales while costs remained very flat QoQ and YoY
  • Good progress on the 3 current deployments
  • Tangible steps taken to explore international expansion opportunities in the Middle East and Canada


SALES

  • New TCV Sales $8.2m
  • $6.8m was for the North Cumbria upsell of MediViewer Doc Management, $1.7m of which will be recognised in FY26 - happy with the margins from the deal with Mizaic (no disclosure on split or margin %)
  • $1.4m in renewal of contract sales - 3-year renewal of Patientrack contract with NHS Bolton, other existing small contracts
  • 92% recurring product revenue, 8% non-recurring product implementation services
  • Highest Q1 Quarterly New Sales in the past 3 years
  • FY26 contracted revenue $36.3m, up from EOFY FY25 $28.5m, up $7.8m - highest value of in-year contracted revenue in a Q1 in ALC’s history
  • Contract renewals are heavily weighted to 1Q for ANZ and 3Q/4Q for the UK - all renewals expected were renewed, expect the same for the UK renewals

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DEPLOYMENTS

  • University Hospitals Sounthampton - Miya Emergency deployed
  • North Adelaide Local Health Network (NALHN) - Miya Flow deployed
  • North Cumbria - phased deployment, on track


FINANCIALS

e278223a9af5e2442f34f0003b50c1369cbc56.png

  • Q1 is the softest annual quarter for cash receipts and new contracts
  • Strong Q1 cash receipts of $8.4m vs ~$6.xm-ish in the last 2 Q1’s
  • Strong material improvement in Q1 cash outflow of ($0.6m) vs 1QFY24 ($3.9m) and 1QFY23 ($8.0m)
  • Costs have remained very flat QoQ and YoY - a really good continuation of cost control
  • Cash balance $16.4m, no debt


e65d3d5587a95cb58f026634e0ffad9dd4a4bf.png

OUTLOOK

Reconfirming FY26 guidance for positive EBITDA and operating cash flow - this includes costs for international expansion - “pragmatic and strategic investment without overplaying that investment in lines with expectations on return on that investment” - am comfortable with the cautious approach

Need some new FY26 sales to hit EBITDA guidance, but confident.

UPDATE ON NEW MARKETS

  • Will take time, not expecting to give meaningful updates every quarter
  • Saudi Arabia - exhibiting in first Saudi Arabian conference this week - part of assessing best markets for ALC and identifying partners to work with in that region
  • Canada - continuing to work with Consultant on the ground on early adopted opportunities - focused on direct entry into Canada, not via acquistions
  • Continued inbound interest from Aust and UK as more sites are deployed 
  • NHS released its Medium-Term Planning Framework, giving some detail on 10 year plan and what they are expecting to focus on in the next 2-3 year period, heavy emphasis on digital
  • NZ - started to see more stability and focus on investments in digital after 2-3 years of massive structural change across all public healthcare, retained all customers during this period
  • Aged Care and Community Care opportunity:
  • Miya Precision lends itself to add value to the management of beds and people flowing through healthcare/hospitals, aged care systems and ageing-in-place
  • Seeing this as an extension of the capability of the Miya Precision platform, not new modules

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Bushmanpat
Added a month ago

@jcmleng I agree, a good quarterly, but I would like to see the cash balance stable or grow ever so slightly. Down $1.3M through the quarter, which admittedly is a big improvement on Q1 FY24 which saw $2.9M down. And I do note that cash grew $7.5M in Q4FY25, so perhaps I'm just being picky, or impatient, or both!

15
jcmleng
Added a month ago

@Bushmanpat , I hear you and agree! I generally like to compare QoQ vs YoY. But given the way the UK contracts and payments are structured and timed, 1Q is always going to be a seasonally very flat cash and revenue/contracts quarter, then it improves and peaks in Q4. Hence why I thought the sharp drop in cash outflow in 1QFY26 was something very positive as it was driven by 2 positive elements (1) more cash came in than previous 2 1Q's (2) expenses stayed really flat YoY despite including some portion of annual staff bonuses.

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