Company Report
Last edited 3 years ago
PerformanceCommunity EngagementCommunity Endorsement
Performance (17m)
12.3% pa
Followed by
108
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#HY21 Results
stale
Added 3 years ago

I am really liking Alcicion as my current best pick of companies that are pre-profit or not yet at positive cash flow.

They have some good reference sites so prospective customers have actual real use situations to look at when making a purchase decision. 

Customers seem quite sticky and I expect low churn as it is not so easy to change once you have a system embedded.

From the conference call I took out the impression that growth in expenses should slow going forward and as there is a good pipeline of opportunities new sales should provide a good boost to the bottom line.

With the recurring contracted revenue the company revenue is pretty easy to predict and there is upside potential from any new contracts. Alcidion saw a 36% jump in first half revenue to $11.1m and the great thing is that revenue already contracted for FY21 is $21.7m.  Without any new contracts that is already going to be revenue of 17% above FY20 full year result.

If there is continued contract wins and growth in recurring revenue that should see the share price increase over time.

There is $12.5M of cash on hand but I have to consider that there is still a possibility of another capital raising being needed before ALC gets to profitability.

I think a this stage the company is a low risk with a good upside potential.  I hold and am hoping for good things over the coming years for this company.  Hoping to see recurring revenue growth for years to come.