Another milestone win Austco Healthcare Ltd Secures $5.0m Contract to Supply New Surrey

Austco Healthcare Ltd Secures $5.0m Contract to Supply New Surrey

Hospital with Industry-Leading Tacera System

• Agreement to supply Austco’s advanced Tacera alarm management and

clinical workflow solution

• Construction commenced, expected completion in 2029

• Contract win boosts Austco Healthcare Group’s contracted orders to a

record $46.2m

Austco Healthcare Limited's (ASX: AHC) subsidiary, Austco Marketing & Service (Canada), has

secured an AUD $5.0M contract to provide its industry-leading Tacera alarm management and clinical

workflow solution for the new Surrey Hospital in Vancouver, British Columbia.

The new Surrey Hospital will feature over 650 beds, including 48 Intensive Care Unit (ICU) beds and

25 Neonatal Intensive Care Unit (NICU) beds. It will also house a new emergency department, the

second largest in Canada, with specialized care areas for children, mental health patients, and those

with less urgent needs. This facility will significantly enhance access to critical healthcare services for

the residents of Surrey and the surrounding areas.

This high-profile project will include Austco Healthcare’s most advanced alarm management and

clinical workflow solution, featuring over 513 full IP patient stations, 559 clinical workflow terminals,

and Webservices interfaces for seamless systems integration. Critical messages, including medical

emergency notifications, will be delivered to application stations installed throughout the facility,

ensuring staff are promptly notified and can act quickly. Two-way audio will connect patients to

healthcare personnel in real-time, improving workflow, driving efficiencies, and reducing risk.

The new Surrey Hospital will become a landmark healthcare facility designed to meet the growing

healthcare needs of Surrey's rapidly expanding population. It will provide state-of-the-art medical

services and enhance access to high-quality care.

"This contract is a significant milestone for Austco Healthcare and underscores the importance of the

Company’s investment in developing advanced clinical healthcare solutions for modern healthcare.

Our Tacera system will enhance patient care by ensuring timely communication and efficient workflow

management. We are excited to collaborate with the New Surrey Hospital to deliver technology that

supports their commitment to exceptional patient care," said Clayton Astles, CEO of Austco

Healthcare.

Construction of the new hospital has commenced, with revenue recognition expected to begin in

FY25.

This announcement has been approved for release by the Board of Austco.

Austco Healthcare wins AUD $2.6M contract to supply state of the art nurse call system and Tacera Pulse software platform

Azure Healthcare Limited’s (ASX: AHC) wholly owned subsidiary Austco Marketing & Service (Asia) Pte Ltd has secured a A$2.6M contract to supply its Tacera Nurse Call platform to Mount Elizabeth Hospital (MEH), a premier 345-bed private hospital located in Singapore.

Mount Elizabeth Hospital, a flagship of Parkway Hospitals Singapore, stands as a cornerstone of Asia's foremost integrated private healthcare provider, spanning Malaysia, Singapore, India, Greater China, and Brunei. With a reputation for excellence, MEH has emerged as one of Asia's largest private hospitals and boasts an unparalleled concentration of specialized medical professionals, including cardiologists, cardiac surgeons, neurologists, and neurosurgeons.

This strategic contract represents a significant advancement for the company. The contract includes Austco's innovative Tacera system, featuring RTLS-ready call points, Pulse Mobile, and industry-leading clinical workflow solution. Tacera's open architecture, coupled with its robust application programming interface (API), ensures seamless integration with a diverse range of hardware, software, and systems at MEH.

Critical messages, including medical emergency notifications, will be seamlessly transmitted to mobile devices and strategically placed application stations throughout the hospital. This immediate communication process ensures that medical personnel are promptly alerted, enabling rapid and effective responses. Furthermore, the two-way audio functionality establishes real-time connections between patients and healthcare providers, streamlining workflows, driving operational efficiency, and mitigating potential risks.

"We are thrilled to establish this partnership with Mount Elizabeth Hospital," commented Clayton Astles, CEO of Austco. "This contract win underlines our standing as a trusted industry leader and highlights our unwavering commitment to continuously enhancing our innovative solutions. The recent advancements in our leading Tacera nurse call and clinical workflow solutions align with our customers' objectives of enhancing patient outcomes and optimizing caregiver efficiency."

Austco Healthcare offers one of the world's most advanced nurse call systems by constantly updating the platform to meet the needs of any healthcare facility.

Revenue recognition will commence this financial year (FY24) and will be completed in FY25.

With this contract award, Austco Healthcare’s Open Sales Orders have grown to an all-time high of $36.1 million. Open Sales Orders (OSO) represent confirmed contracted orders from customers that have not yet been fulfilled and, as such, no revenue recognised. 

What a nice way to finish the last working week before Christmas. The thesis is definitely on track here, long-tail growth winds for the next two decades with an ageing population, and a slow-moving sector ripe for disruption. 
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?Azure is wining back its credibility. Great job by the board in taking action to increase margins and drive more software sales.
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?Forecasting out with no growth looks like we are inline to see profit in the range of 1.6 - 2 million for the full year based of 2020 1H of 800 -1000.
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?Moving valuation to a conservative forecast of 1.6 * 20 = 32 million market cap or share price of 12.2c over the next year. 

Gross margin improvement is forecast to exceed management’s internal goal of 50% for the half, an increase
from 45.7% (n) in the previous corresponding period and 47.3% in 2HFY19. The margin increase has been
driven through the Company’s continued implementation of it’s strategic plan, including:
• Increase share of higher margin Software and SMA revenues, from 11% to a forecast 15% of total
revenue;
• operational process improvements, such as:
o the introduction of drop shipping to resellers around the world, resulting in lower levels and costs
of regional inventory, and reduced product costs and delivery timelines;
o improved inventory management to achieve more attractive pricing; and
o other operational efficiencies achieved through the deployment of material requirements
planning software and more streamlined processes
• action to mitigate the effects of the tariffs
o the shift away from China for sourcing raw materials and componentry; and
o refinements to raw re-order points and quantities which benefited unit cost prices

Azure had exposure to the growing aging population. Sale of nurse call units expected to double over the next 7 years. Recent directors buying is a good sign.

The company has invested over the last four years to build a strong capability in reporting and workflow to complement the hardware vusiness. The software side currently makes up 11% of sales and is growing with large 1.3m sale in Canada. 

Risks remain, with the COGS increasing due to Trump tariffs, and uncertainty around brexit.