ALC has has signed an initial 3 year agreement with University Hospital Southampton NHS Foundation Trust (UHS) to implement its Miya Precision platform. As part of the agreement, Alcidion will partner with UHS to deliver a modern, modular EPR, using a combination of Miya modules and UHS incumbent products. 

In addition, Alcidion will become a supplier of some of UHS’s intellectual property, including the Hospital Integrated Clinical Support System (HICSS), which manages the scheduling and reporting of endoscopy procedures.

The initial contract value is $2.8M over 3 years covering the implementation of Miya Precision, together with Miya Access, Miya Command, Miya Emergency and Miya Flow modules.

The contract includes options to take up additional Alcidion modules, including the Patient Administration System (PAS), as UHS builds a Modern Modular EPR which will result in significant growth of the overall contract value. If all options were taken up the total contract value could reach $13.8M over a four-year period. 

The addition of UHS increases Alcidion’s UK NHS market presence to 40 Trusts or approximately 28% of the acute market with at least one Alcidion product implemented. Furthermore, UHS sits within the Hampshire and Isle of Wight ICS which will be the first time Alcidion has implemented their solution in this ICS. 

UHS is one of the largest acute teaching trusts in England, with over 1000 beds and employing approximately 13,000 staff. Well-known and highly regarded for its innovative electronic patient record (EPR) strategy and in-house development of IT systems, UHS will use the Miya Precision platform to introduce real-time care management tools that complement its long-standing approach to digital innovation. It will also gain access to a modern integration platform, with support for coding and open messaging standards, that can be used to deploy Alcidion’s modules and further drive innovation.  

Lynette Ousby, UK Managing Director for Alcidion, said:

“UHS Trust is well-known as a health tech leader, so we are delighted it has chosen the Miya Precision platform and our smart clinical tools to take its digital maturity to the next level.”

Group Managing Director and CEO Kate Quirke added:

“Our relationship with UHS is focussed on a long-term partnership and reciprocal agreement. With a strong reputation as a digital exemplar, I look forward to seeing the impact of this latest stage of the trust’s program, and to further developments in the near future.”

“As the NHS continues to deploy technology at pace, it is important to continue to listen to what IT, clinical and operational teams need. Doing that effectively requires flexibility from technology providers and a willingness to work together. It is rewarding to see the benefits of a modern, modular approach to digitisation working so well in practice.” 

FY22 Full Year Results and Annual Report 

Alcidion has announced that the company has delivered a record full year revenue of $34.4M, up 33% on the prior corresponding period (pcp). Recurring revenue growth outpaced total revenue growth, up 42% on pcp to $23.3M and this now represents around 68% of total revenue.

ALC said that revenue was achieved through a combination of organic and acquisitive growth. UK revenue increased 44% on pcp to $16.3M, bolstered by a $4.3M contribution from 6.5 months of Silverlink revenue. ANZ revenue increased by 25% on pcp to $18.1M.

Gross Profit margin was slightly down from the year prior to 86%, compared to 88% in the prior year and this was reflective of the product mix.

An increase in staff costs was consistent with the strategy of scaling key resourcing, which was delayed from FY21, particularly in the UK, to take advantage of emerging opportunities. Alcidion expects a further increase in staff costs in FY23, reflecting the full-year impact of Silverlink staff costs, full-year impact of H2 FY22 hires along with planned new hires not yet recruited. 

The Company reported positive underlying EBITDA of $0.9M, reflective of the continued emphasis on scaling the business, albeit beginning to demonstrate early stages of operating leverage. 

ALC reported positive underlying EBITDA of $0.9M, which is reflective of the continued emphasis on scaling the business, albeit beginning to demonstrate early stages of operating leverage. 

Alcidion delivered positive operating cashflow in FY22 of $1.0M and after excluding the costs associated with acquisitions the operating cash flow was $3.1M. The business ends the year with a cash balance of $17.3M and no debt. 

Managing Director Kate Quirke had the following to say:

“The past twelve months have been significant for Alcidion, achieving record new sales and full year revenue for FY22, as well as completing the acquisition of Silverlink PCS and signing several pivotal contracts that have enabled us to progress toward our ambition of becoming a global leader at the forefront of digital healthcare.”

“Many of the trends we are seeing in the global healthcare system, such as greater demand for virtual / inhome care and remote patient monitoring are areas our product solutions are already addressing for our customers and have been for some time. The ever-increasing volume of patients flowing through hospitals and on hospital waiting lists continues to increase the complexity and further strengthens the value and benefits for interoperability of data and systems. This is one of the core value propositions of our technologies and highlights the critical role we can play in addressing these needs.”

“As the UK government continues to invest in the modernisation of the NHS, we are well-positioned to respond to larger EPR tenders that are emerging from the NHS EPR maturity program. The integration of Silverlink into our product suite has strategically positioned us – both in terms of market perception and capability – to further expand our UK presence through the NHS Frontline Digitisation Program which aims to have 90% of NHS Trusts with an EPR procured by December 2023 and 100% of NHS trusts to have an EPR live by March 2025. We will continue to champion our modular strategy in concert with this initiative and look forward to partnering with the NHS to help them achieve their vision of a digitally enabled health and care system.” 

ALC is up 8% today, coinciding with the release of their Q3 FY22 Quarterly and a strong ASX uplift.

Alcidion made $12.5M of new sales in Q3, with $4.3M able to be recognised in FY22. New sales comprised $9.2M (74%) of recurring Product revenue and $3.3M (26%) of non-recurring Services revenue (which includes product implementation). FY22 YTD (as at end of Q3) new sales is $42.9M, 93% up on cumulative new sales at the same time last year. 62% of new sales relate to recurring Product revenue and 38% to non-recurring Services revenue. Illustrating the breadth and maturity of the sales pipeline in ANZ and the UK, Alcidion signed two new contracts subsequent to the end of Q3 with a TCV of $6.4M. These sales are not reflected in the Q3 figures disclosed.

Alcidion Group Managing Director Kate Quirke said, “Alcidion has had a very strong quarter delivering positive operating cash flow in Q3 of $1.6M after excluding settlement of one-off M&A costs. During the quarter Alcidion announced new contract wins and renewals with UK customers including new Miya Precision customers, upsell of additional modules to existing customers, renewal of Silverlink contracts and subsequent to the quarter end, an upgrade of an ExtraMed customer to Miya Flow. These new contracts demonstrate the benefits of the recent acquisitions alongside our growth strategy. In Australia, we entered into a new $5.0M, 5-year agreement to upgrade Northern Territory Health to Miya Precision with options to add additional modules over time. This active start to the calendar year demonstrates Alcidion is executing its strategy to attract new customers, upsell additional modules and upgrade existing customers to Miya Precision, as evidenced by these recent contract wins”.

Highlights:

• Q3 operating cash outflow of $0.4M - positive inflow of $1.6M after excluding the settlement of M&A costs related to the Silverlink acquisition
• New sales TCV in Q3 totalled $12.5M with $4.3M expected to be recognised in FY22
• YTD (as at end of Q3) new sales TCV of $42.9M, 93% up on the prior corresponding period (PCP) with $12.9M able to be recognised in FY22
• At the end of Q3, contracted revenue expected to be recognised in FY22 stands at $31.7M (including $4.4M from Silverlink) - up 28% on the PCP and 22% ahead of FY21 full year revenue of $25.9M
• A further $1.0M of scheduled renewal revenue is expected to be converted to recognised revenue in Q4
• Two contracts (NT Health and East Lancashire), signed subsequent to the end of Q3 with a TCV of $6.4M, are not included in the above figures and are illustrative of a mature pipeline of opportunities in ANZ and the UK 
• Cash balance of $17.5M at 31 March 2022

Accelerated Non-renounceable Entitlement Offer – Now Open

As announced on 7 December 2021, Alcidion Group Limited (Alcidion) is offering eligible shareholders the opportunity to participate in an Accelerated Non-renounceable Entitlement Offer (Entitlement Offer). The Entitlement Offer allows eligible shareholders (who are residents of Australia or New Zealand and held ALC shares at 7:00pm (AEDT) on Thursday, 9 December 2021) to take up an offer of 1 new fully paid ordinary share in Alcidion for every 10.5 existing shares without incurring brokerage or transaction costs. The issue price per New Share will be $0.25 per New Share (being the same price paid by institutional and professional investors under the recent share placement).

Participation under the Entitlement Offer is optional. Full details of the Entitlement Offer are contained in the Entitlement Offer Booklet. Eligible shareholders should read the Alcidion Entitlement Offer Booklet in its entirety and consult with their financial or other professional adviser before deciding whether or not to participate in the Entitlement Offer.

East Lancashire Hospitals NHS Trust to deploy Patientrack and Smartpage at all five hospital sites

Highlights:

• Alcidion has signed a deal with East Lancashire Hospitals NHS Trust for Patientrack and Smartpage to be deployed at all 5 hospital sites, representing a total contract value (TCV) of $2.2M
• Alcidion now counts 21 NHS Trusts as customers

Alcidion grows recurring revenue base, while investing to accelerate growth

Melbourne, Australia – Alcidion (ASX: ALC) has today released its audited full year results and Annual Report to Shareholders for the Financial Year ended 30 June 2020 (FY2020).

Highlights:

• $18.6M revenue reported for FY2020, 10% increase vs FY2019;
• Recurring revenue significantly increasing to $10.5M, 35% up on the prior year;
• Net loss of $3.1M, reflecting planned investments to accelerate growth;
• Cash reserves of $15.9M, well capitalised to support further growth in FY2021;
• Significant product contracts signed in the UK and Australia
• Entering FY2021 poised for further growth, with strong pipeline of potential business and $12.8M already contracted revenue to be recognised in FY21.

Alcidion appointed to UK National Health Service (NHS) Clinical Communications Procurement Framework

Mobile clinical communications improve clinician and patient experience

A new multi-million pound framework that will help the NHS ‘purge the pager’ provides NHS trusts in the UK with a means to quickly and easily procure Alcidion’s Smartpage messaging system without tendering.

NHSX has awarded Alcidion a place on its £3 million Clinical Communications Procurement Framework, a new procurement vehicle to help the NHS phase out pagers by the end of next year.

Smartpage allows instant two-way messaging between busy professionals providing them with read receipts and guaranteed delivery between all care team members, as well as the ability to share images and assign tasks. Healthcare providers using the system are also given organisation wide oversight in real time.

Lynette Ousby, UK general manager for Alcidion, said: “NHSX has shown a commitment through this framework to accelerate the spread of modern technologies in the health service that can help healthcare professionals communicate effectively during the busiest of times.

“The inclusion of Smartpage on this framework is an important independent validation for Alcidion’s Smartpage product. We look forward to helping trusts modernise their communications tools through a framework in a way that is affordable and straightforward.”

The new framework follows an order from health and social care secretary Matt Hancock for the removal of pagers from the NHS for non-emergency communications by the end of 2021. Speaking at the time in 2019, he said: “Every day, our wonderful NHS staff work incredibly hard in what can be challenging and high-pressured environments. The last thing they need are the frustrations of having to deal with outdated technology – they deserve the very best equipment to help them do their jobs”.

Alcidion has had significant success with Smartpage over recent months. Reliable and secure communication between clinicians is a critical component of digitally integrated and coordinated care across the healthcare sector. However, siloed information due to a complex mix of pagers, legacy phones and whiteboards is a cause of communication delays or errors in many hospitals today. This can lead to longer waiting times, delayed or missed care and lack of visibility into staff workloads.

To address these challenges, four leading healthcare organisations have chosen to implement or extend the use of Alcidion’s smart clinical messaging platform Smartpage: ACT Health, Nelson Marlborough District Health Board, Counties Manukau District Health Board and Townsville Hospital and Health Service.

Alcidion Managing Director Kate Quirke said, “Despite challenging market conditions during the final quarter of the financial year, as the COVID-19 Pandemic (“COVID”) continued globally, we are pleased to deliver a healthy sales performance in the final quarter. Whilst COVID has delayed the signing of some contracts, with frontline healthcare organisations focused on the provision of critical care, we are pleased that the pipeline of potential business has continued to grow and we remain confident of our further growth.”

“The benefits that our technology can deliver; in managing risk, assisting clinicians to monitor patients and manage resources, both in the hospital and remotely, has been highlighted during COVID. This environment, and the enhancements we have made to our product suite to help healthcare providers manage COVID-19 risk, have contributed to us securing new customers and contracts in Australia and the UK.”

“Our involvement in the Monklands digital hospital experience run by NHS Lanarkshire was a springboard to our first Patientrack contract with this NHS board, further expanding our presence in NHS Scotland. We are also pleased to see the use of Miya Precision expand across NSW, with both Sydney LHD and Murrumbidgee LHD signing contracts for initial 12-month periods.

“Despite the current global climate, we are pleased to report growth in Q4 and FY2020 overall. We enter FY2021 well prepared to drive further growth, with a solid base of contracted revenue, much of which is recurring revenue, and a healthy pipeline of potential sales. In the current environment the strength of our value proposition to support both short term COVID-19 management and the longterm digital transformation of healthcare, is being increasingly recognised.”

Q4 FY2020 Business Update Solid results during challenging times

Highlights:

* Healthy Q4 sales performance despite challenging market, with $3.7M contracted revenue added in the quarter, more than double the corresponding period last year

* Final FY2020 revenue anticipated to be in the range of $18.4M and $18.7M

* $12.8M in revenue has already been contracted to be recognised in FY21 with a further $17.0M sold out to FY2025

* Net operating cash flow surplus for the quarter of $0.25M, resulting in cash reserves of $15.9M at 30 June 2020

* Cash receipts for the quarter from operations of $7.6M, consistent with usual uplift at year-end

* Alcidion products have been enhanced for in-hospital and remote monitoring of COVID-19 patients and deployed live into hospitals

* Significant contracts signed and announced since 1 April 2020 include:

o NHS Fife – 5-year Patientrack extension across entire board

o NHS Lanarkshire – 5-year agreement to implement Patientrack across board

o Sydney LHD – initial 12-month contract for Miya Precision to support COVID-19 virtual care

o Murrumbidgee LHD – 12-month contract for full Miya Precision platform including MEMRe

o ACT Health – 2-year extension to long term integration support contract

NHS Lanarkshire to deploy Patientrack across entire board

Highlights:

* NHS Lanarkshire to deploy Patientrack to all three Lanarkshire hospitals and into the community setting, covering approximately 1,250 beds

* $1.52M total value to be recognised over five years to 2025

* NHS Lanarkshire is the second NHS Scotland Health Board to implement the Alcidion Patientrack solution
 

Murrumbidgee LHD signs contracts for Miya Precision

* Contracts signed for Murrumbidgee LHD continued use of Miya Precision and Miya MEMRe

* COVID-19 and out-of-hospital monitoring capabilities incorporated into the solution

* Miya MEMRe to be rolled out to up to an additional 200 doctors

* Total contract value of $686k for 12 months from Jan 2020