I’m just thinking out loud here.

The UK economy observed from afar is in a world of pain on many levels, socially, energy prices/inflation, politically. Anecdotally, this opinion has been backed up by recent travelers to the country who report back that the UK is not thriving. The latest BOE intervention is a big sign all is not well.

So, this leads me to to question companies that have a decent exposure/reliance on the UK,

I have been pondering this for a few weeks trying to work out if my “uneasiness” about ALC has any merit. The BOE and nerdags recent post has pushed me to the negative side.

A few things stick out to me as potential headwinds:

FX exchange, if the pound slides against the $A how will this impact earnings. The annual report says no hedging is required as there are enough financial assets in GDP etc to cover opex. Fair enough but at some point, the earnings supposedly need to be converted to $A? NHS contracts, what are these priced in GDP or AU? The latest contract announcement just alludes to TCV which I guess is in $A?  I’m assuming UK customers are paying in GDP, but I can’t find that detail, maybe this isn’t important?

Finally, I think @nerdag hit it on the head

"The biggest risk to Alcidion at the moment is not competitors, it's from Governments choosing to tighten belts too much."

On the surface tight health budgets seems good for ALC as it offers a more cost-effective operating cost, but to get there requires investment in $’s and people. The target of getting all medical records digitized “appears” a great tailwind, but if things get tough the goal post can easily be moved. Improving hospitals efficiency is an obvious benefit to all Brit’s but I think it is a hard sell to the public when issues such as energy bills are staring them in the face.  Governments usually/always take the easy, more palatable option and throw money where it has the biggest “visual” impact.

I’d appreciate feedback, it’s not a company I follow as closely as others on the forum.

Held small research position