21/1/22 Quarterly Activities/Appendix 4C Cash Flow Report

A solid quarter from GLH bringing in $2m in receipts and scraping through breakeven operating cash flow. Be aware there is lumpiness in receipts and the company notes 2Q and 4Q are the stronger ones (1Q receipts were only $1.3m in comparison).

It was pleasing to see management be controlled with costs, my fear was that after doing the large capital raise it would give them free rein to spend heavily but it is clear they have a strong focus on driving value from any costs.

The commentary suggests Covid will continue to slow down their ability to implement their contract wins (which makes sense given their customers are hospitals and health centres) but management have no fears revenues will be lost but only deferred until they are able to implement. Nonetheless it sounds like FY22 will still show solid ARR growth with more to come in FY23.

22/07/21 Quarterly Activities/Appendix 4C Cash Flow Report

A solid quarter from GLH, cash receipts of $2m roughly in line with prior quarters leading to a small positive operating cash flow of $300k.

FY21 unaudited revenue of $7m was slightly ahead of the $6.9m guidance given in the capital raise presentation.

The business continues to be profitable at the EBITDA level (~$1m) with $650k ARR pipeline waiting to be implemented.

31/5/21

New CEO Appointment

GLH announced founder and CEO Mathew Cherian will step back to an Executive Director role and focus on the business at a strategic level, including international expansion and M&A opportunities.

Michael Davies has been appointed to the CEO role and brings with him fantastic experience primarily in the telco sector, most recently as Head of Revenue at Macquarie Telecom. Shareholder returns at MAQ have been fantastic over the last decade.

Despite having no direct health experience, Michael clearly has a strong background in sales, particularly at an enterprise level and looks to be a great appointment at this point in GLH's life as the large investment into the product suite is largely complete and expanding sales is the next step to be taken.

27/4/21 Appendix 4C - quarterly

GLH voluntarily reported a very strong 3Q result, with 3Q revenue growing 17% on the prior year to $2.26m while NPAT grew 24% to $580k. The strong result also brought the YTD into profitability at $528k.

Cashflow was again a highlight given the capital light nature of the business with operating cash for 3Q of $486k and YTD of $1.08m.

Management were bullish on the future of the business, underpinned by the implementations of five contracts to be completed by September and will add over $750k to ARR. 

The company's "Connected Health Records" platform which allows for customers to engage in digital health solutions is also seeing strong demand post-Covid, growing 50% (presumably off a low base with no exact figure provided).

Clinical functionality has now also been completed for the core MasterCare SaaS software, which is designed for hospitals and complies with all statutory requirements to integrate with the Government's MyHealthRecord system.

There is currently a "solid" flow of inbound enquiry and management are looking at increasing sales and marketing to capture that as well as accelerate the shift of customers to the SaaS offering.

Provider of a suite of medical software solutions primarily aimed at Community Health services. The company has had a checkered history, most notably a dispute with the South Australian government in 2016 about the government's use of a legacy software system that GLH was no longer supporting. This dispute sapped GLH of valuable resources which required them to embark on many years of product development to modernise their offerings and transition them to a SaaS model (still on-going with all modules scheduled to be complete in the next 18 months).

Covid has been a tailwind for the business with healthcare providers rushing to digitise their operations and put in place abilities to provide remote care (which GLH has software modules to support). In a recent investor presentation, management confirmed ARR is expected to be at least $5.4m at the end of FY21 as they complete implementations delayed due to Covid. Further to this, $4m of proposals have been submitted with various Community Health providers for the core MasterCare software. This pipeline has given management the confidence to forecast ARR growing at 20% CAGR over the next three years.

For the recent 1H21 report, the business was free cashflow positive, generating $600k operating cash and re-investing $300k of this back into capitalised software development. While profitable, I expect ARR growth is the key focus of the business right now, with business development personnel recently employed in NSW to drive sales outside of their core Victorian operations (note Community Health is a Federal government funded service unlike hospitals so software solutions require little customisation between states).

GLH is a founder led business with Mathew Cherian in place as Managing Director and substantial shareholder owning over 50% of the business.