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Last edited 2 years ago
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#Silverlink acquisition
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Added 2 years ago

Silverlink Software is one of the most widely used patient administration systems (PAS) in the NHS. Alcidion state that this acquisition will take its market share within the NHS to around 26 per cent.

Silverlink management team have many years of experience and have built relationships with many of the NHS trusts. Overall Alcidion is executing on their current plan of growing and reaching significant market share of the NHS.

#2021 Annual Report
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Added 3 years ago

Great year for Alcidion

Highlights and summary of financials 

  • FY21 revenue of $25.9 million vs FY20 $18.6 million, 39% increase.
  • Recurring revenue increased by 56% to $16.3 million.
  • Gross profit increased 43% from $15.9 million to $22.8 million
  • Gross profit margin increased to 88.3%, up 2.4% from FY20’s 85.9%. This could be a year to year various however it’s great to see profit margins increase with a business like Alcidion.
  • The FY21 loss after tax was $2.2 vs FY20 3.1 million
  • EBITDA FY21 - $510,000 vs FY20 - $3.8 million

 

Growth

On the call it seems to me that the pipeline coming through is substantial. Although it can be dangerous reading too much into specific wording, mood, and body language during AGMs I came away with a feeling that the next year will be a stellar year with a food quarter to come.

Kate is thinking about the long-term of Alcidion and this is evident in an answer that was given “We have pre-sold revenue of $18M in contracted revenue and scheduled renewals at the start of FY22 and established a strong pipeline out to FY26, with several expected renewals further underpinning our growth profile.

It is great to see a CEO talking about the future of the company and not only the next quarter or year.  

The annual report also stated: Alcidion will continue to pursue its growth strategy in FY22, which includes continuing to invest in scaling the business to support growth in existing markets with a view to entering new markets in the future.

Kate said that they will also be looking at acquisitions. Noting that any acquisition will be carefully looked at to ensure it is a good acquisition that will add value to the Alcidion offering. Specifically looking at expanding product offering to further improve NHS traction

 

FY22 Focus 

  • Upsell Miya Precision (or other modules) to existing Alcidion customers)
  • Win new Miya Precision installs
  • Capitalise on being listed on the NHS Procurement frameworks which is currently inplace to accelerate the adoption of technologies and to phase out pagers by the end of 2021 (view NHS procurement here)
  • Increased focus in Australia on Virtual Care and Remote Monitoring
  • Benefit from the opportunities in New Zealand arising from the consolidation of District health boards (DHBs) (view news article on the NZ DHBs consolidation)
  • Strategic Acquisitions to improve NHS traction. Note ALC currently have $25 million cash on the balance sheet.

 

The recording of the webcast and Q&A can be seen by clicking here

#Bull Case
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Added 3 years ago

Alcidion does a lot more than provide simple electronic medical records (EMR) and this is the reason why Kate states there is no direct competition.

Have a look at the products Alcidion provides and specifically the Miya Precision platform. https://www.alcidion.com/products/miya-precision/

 

It is an integration of many products using technology and artificial intelligence to not only digitalise the ability to monitor, and track patient care within a tertiary healthcare setting (hospital) but also from the beginning of a patients journey at their local GP. 

If you have some time read through this case study https://www.alcidion.com/success-stories/queensland-health/ 

 

The systems that Alcidion provides within a tertiary healthcare setting is great and can increase funding received by a hospital due to increase efficiencies in documentation and well and increased operational and admin efficiencies. I will provide a very quick real-life example regarding a small but significant factor that can get missed with patient documentation through EMR.

I will simplify the next paragraph for the audience who may be none-medical/healthcare, or hospital admin/operations. Therefore, this is very basic and does not encompass how funding works in its entirety. 

Funding received for a given hospital and a given department depends on several factors. These factors include things such as, volume or patients (the amount of people that receive care from a healthcare facility, broken down by departments), volume of work performed (i.e., hours worked within a department by medical and allied health performing care) and volume of conditions/diseases treated (per person and in total).  

 

If we look at the last point, conditions/diseases. A hospital and department may miss out on funding due to documentation not including keywords relating to conditions and diseases treated during an inpatient admission (while the person is in hospital).

Currently within hospitals a person who is called a “coder” will physically look through EMR documentation to find these keywords. As an example someone comes in with a broken leg, the hospital receives funding to treat the broken leg. If that person develops other conditions such as hypokalaemia (low potassium), a hospital should receive funding. However documentation within EMR is important in this case. If the hypokalaemia is not documented so that the coders can pick it up it will get missed and the hospital will lose funding for a condition they treated. Alcidion’s platform changes this, the use of AI and its technology is able to pick up on these conditions which get treated due to the data from EMR, medication given, and pathology results.

 

Another way that Alcidion can improve operational efficiency is through resource management and optimise utilisation of resources. As an example, if we look at Orthopaedics in a large hospital. There will be different teams that make up Orthopaedics for example upper limb or lower limb. These teams will have junior doctors on them as they progress through their rotational years in the hospital. Say the upper limb team is not as busy and the lower limb team is, well, Alcidion’s technology is able to identify this and reorganise a doctor from lower limb to help with the upper limb team. This might be a task as simple as preparing discharge summaries, that in turn help to safely discharge a patient home quicker and thus saving the hospital money.

 

These are only a few of the reasons why I see Alcidion as a great investment with large industry tailwinds. The risks identified in the straws written below are great! They help us think about the risks to Alcidion. Competition from a large organisation could disrupt Alcidion. In my experience many of these EMR companies currently do not provide the complete platform which Alcidion does.

In my opinion Alcidion provides a great product which has been appreciated within multiple organisations. Currently we are in the infancy of digitalising healthcare organisations. 

I believe Alcidion has the potential to grab a decent market share and should continue to grow. As with anything I write I do it to express my views and thoughts, not as a buy recommendation or to persuade the reader.

 

I will finish with a great sentence, one that Andrew uses himself; You can borrow an idea, but you can’t borrow their conviction.

#Q4 FY21 Quarterly Report
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Added 3 years ago

Q4 FY21 Quarterly Report

Another good quarter for Alcidion. The company managed to generate a positive free cash flow for Q4 leading to a positive operating cashflow of $1.1M for FY21.  

The next 2 years will be very important for Alcidion as they continue to look for growth while aiming to be profitable in FY23. 

Continued growth looks good, both organically and via the ExtraMed acquisition. 

It is a pivotal time in healthcare digitalisation and Alcidion are perfectly positioned. Kate Quirk (CEO) and her team have executed plans well.

The portfolio of organisations which Alcidion provides their products to continues to grow year to year, this in turn acts as a continued endorsement to other organisations.  

 

I would expect continued growth over the next +5 years and beyond. Although this growth may be uneven quarter to quarter, overall, the company and entire subcategory within the health industry have a long growth runway.

 

 

Highlights:

  • Unaudited FY21 revenue of $25.6M - $25.9M, a 38% - 39% increase on the prior corresponding period (pcp)
  • Positive net operating cash flow of $1.6M for Q4, resulting in a full year FY21 positive operating cashflow of $1.1M
  • New and renewed contracts with a TCV of $7.3M in Q4, up 52% on Q3 and 97% on pcp
  • Opening balance of contracted revenue to be recognised in the new financial year (FY22) of $15.1M, 18% higher than at the same time last year
  • Acquired ExtraMed in April 2021, a leading UK provider of patient flow software, expanding Alcidion’s UK market presence whilst providing additional cross-sell opportunities
  • Selected as preferred provider (as part of a Consortium) for a major project to provide a consolidated healthcare record and support clinical decision making (via Miya Precision) across the Australian Defence Force with potential Total Contact Value (TCV) for Alcidion of approximately $21M over 5.5 years subject to contract finalisation in Q2 FY22
  • Cash balance at 30 June 2021 of $25.0M (PY: $15.9M)

 

View Attachment

#NextGate to UK
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Last edited 3 years ago

Expansion of reseller agreement with NextGate. 

Currently NextGate was used in AU-NZ and now the product suite will include the UK 

#Contract win + long term view
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Added 3 years ago

Alcidion Signs $9.5 million deal with South Tees Hospitals NHS Foundation Trust.   

Here are a few extra details; 

One of the hospitals within the trust includes The James Cook University Hospital which is a large, 1,024 bed major tertiary referral hospital.

The hospital is also a tertiary training centre for Newcastle Medical School. Which consistently ranks in the top 10 medical schools in the UK.  

Alcidion currently provides services to follow NHS Foundation Trust's; 

- Manchester university hospital
- Basildon and Thurrock university hospitals
- Westerns Sussex hospitals 
- Fife

These hospitals all provided training for medical students, junior doctors and allied health.

In my opinion, if Alcidion can continue to provide quality services within these organisations it will have a large positive impact on the future perception of Alcidion's products by the junior medical and allied health professionals who are now coming through the pipeline of training and education. This group of people will be one of the important voices of feedback regarding product efficiency and quality which has a large weighting on long term success.