Alcidion Group Limited

ASX:ALC

Alcidion Group Limited

ASX:ALC
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$0.066 (-4.3%)
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#10
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Reports (14) My Report Forum Investors
Forum Topics ALC ALC ASX Announcements

Pinned straw:
mikebrisy
Added 5 months ago

Much-needed good news for beleaguered $ALC.

ASX Announcement

Alcidion signs $23.3M South Tees contract extension until 2033

• Alcidion extends contract with South Tees Hospital NHS Foundation Trust for an additional 8 years for Miya Precision Electronic Patient Record (EPR) o Extended contract period is 10 years (to 2033) which includes 2 years remaining on the existing contract

• The minimum contract value is $23.3M (£12.2M) over the new contract period of 10 years

• Further options to include PAS (Silverlink PCS), Emergency Department (ED) and Virtual Care modules would add $9.3M (£4.9M) to the minimum contract value • Options exist to extend for a further 5 years to 2038

• Validates value proposition for Miya Precision Electronic Patient Record (EPR) solution and acts as key reference point for the NHS EPR market 


My Analysis

South Tees was already $ALC's largest and highest-profile NHS client, and this contract is by some margin, the largest even pipping the 15-year potential of the Leidon ADF contract (if I am not mistaken).

That a core client undertakes such a commitment to the $ALC product suite is great news. However, to maintain the thesis $ALC needs to follow-up over the coming months with additional material NHS contracts, including with new customers.

I cotninue to hold, for now, but am still mulling this one over as it was descended towards the bottom of my merit order.


Disc: Held in RL and SM
TPI1
5 months ago

I think it affirms that ALC has a legitimate and serious product suite that can be used as a full EPR, and allows users to start off in an agile and modular fashion and be layed on top of older systems. This is a central pillar of the investment thesis and I expect in time will also validate the Silverlink PAS acquisition.

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UlladullaDave
5 months ago

That a core client undertakes such a commitment to the $ALC product suite is great news. However, to maintain the thesis $ALC needs to follow-up over the coming months with additional material NHS contracts, including with new customers.


Agree @mikebrisy .This is the crux of it. Stickiness of the revenue is a pretty central part of the thesis for any SaaS business and especially one with the sort of long sales cycle that ALC has. Contract renewals are just confirmation of that. But has anyone really doubted the quality of the product? The issue remains capital management. Today's renewal is just another mile marker indicating the product is actually doing what it says on the box.


33
Solvetheriddle
5 months ago

@mikebrisy fair comment. this announcement is good news, a new client would be great news.

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