Alcidion Group Limited (ASX: ALC), formerly Naracoota Resources Limited, is an Australia-based health informatics company. The Company’s solutions focus on Emergency Rooms, Inpatient Services and Outpatient Departments, and are built upon a health informatics platform, which incorporates an electronic medical record (EMR), clinical decision support engine and electronic smart forms. Its solutions include Miya ED, Miya Patient Flow, Miya Clinicals and Miya Clinic. Its Miya ED provides a set of clinical dashboards and emergency-department (ED) whiteboards. Its Miya Patient Flow System is an e-health guidance system, which offers to integrate electronic journey boards, mobile EMR data capture, EMR software and a monitoring system. Its Miya Clinicals offers a suite of applications and services to the existing health information technology (IT) infrastructure. Its Miya Clinic Outpatient Software and Referral Management System optimizes the outpatient processes from referral through to discharge (Profile source: Reuters)

From the Company Reports

Alcidion signs contract with Te Manawa Taki DHBs for Electronic Medication Management

Alcidion Group Limited (ASX: ALC) on 2 March 2021 announced that it had signed a contract with New Zealand’s Te Manawa Taki (TMT) region District Health Boards (DHBs) for a pilot implementation of Better’s OPENeP Electronic Medication Management solution.

Highlights:

  • First strategic implementation of OPENeP in Southern Hemisphere with Te Manawa Taki DHBs (total of five DHBs) in New Zealand
  • Initial pilot project will be undertaken to the value of $0.6M over ~6-7 months
  • Should the pilot be successful, a subsequent rollout to up to 5 DHBs is covered by the contract
  • Builds on Alcidion and Better relationship in the UK (Dartford & Gravesham and South Tees) and provides a reference site for further contracts in New Zealand and Australia

(Chart source: TradingView)

Alcidion H1 FY2021 Results

Strong half year sales driven by strategic contract wins

Alcidion Group Limited (ASX: ALC) 25 February 2021 released its financial results for the six-month period ending 31 December 2020 (H1 FY2021).

Highlights:

  • H1 revenue of $11.1M, up 36% on the prior corresponding period (pcp)
  • Gross profit of $9.8M (88.1% gross profit margin), up from $7.1M (87.4%) pcp
  • $17.4M contracted revenue added in H1, up 190% pcp and representing one of Alcidion’s highest half year sales to date
  • Contracted revenue to be recognised in FY2021 increased to $21.7M, a 17% increase on FY2020 full year revenue with further six months remaining
  • A further $23.0M of sold revenue to be recognised over next five years from FY2022 to FY2026, with $22.4M of that being recurring product revenue delivered at 85%+ margins
  • Cash reserves of $12.5 million at 31 December 2020
  • Milestone contract with South Tees NHS Trust valued at $11.3M over five years

(Graphic Source – Company Reports)

Operational

Significant contract wins included a milestone contract and extension with South Tees NHS Foundation Trust for Miya Precision, OPENeP, Smartpage and services, valued at $11.3M. The contract represents Alcidion’s largest ever Miya Precision contract and makes South Tees the second UK customer (after Dartford & Gravesham) to implement Miya Precision.

Additional sales milestones included strategic Miya Precision contracts with Murrumbidgee Local Health District and Sydney Health District in Australia and a five-year $1.5M agreement with NHS Lanarkshire to implement Patientrack across the board. The period saw important headway made with Smart page in the UK, following its appointment to the NHS £3M Clinical Communications Procurement Framework in August 2020. A full list of significant contracts signed can be found in the Managing Director’s Report. Operationally, the Company’s focus has been on scaling the business in preparation for rapid growth and to capitalise on the rising market opportunity in UK and ANZ as the shift to digital healthcare accelerates.

In H2, the Company expects its sales pipeline to remain healthy as health IT procurement returns closer to normal now that healthcare providers have established protocols to manage COVID-19 cases.

(Chart source: Barchart)

Further H1 Contracts & Extensions

UK Contracts & Extensions

  • 5-year, $1.5M contract with NHS Lanarkshire to implement Miya Observations & Assessments (Patientrack)
  • 5-year Smartpage contract with Lancashire Teaching Hospital
  • Smartpage deployment alongside existing Miya Observations and Assessments implementation with Isle of Man Department of Health and Social Care

ANZ Contracts & Extensions

  • NT Health extension for program management services
  • New integration services contracts with ACT Health
  • Extension with NSW Health for technical services relating to Child Data Hub (CDH)
  • Victoria Department of Health – panel contract supporting Victorian Hospital Incident Management System (VHIMS)

Prophets Take

Alcidion is advantageously positioned for H2 FY2021, with the Health IT sales environment progressively returning to pre COVID-19 levels. It is on track to surpass FY2020 revenue, with contracted revenue for FY2021 already 17% higher and six months of the year remaining. From FY2022 to FY2026, a further $23.0M revenue is to be recognised, with $22.4M as recurring product revenue expected to be delivered at gross profit margins of 85%+.

The Company has a solid sales pipeline with new and existing customers in all markets. Sales traction in the UK market is accelerating driven by key Miya Precision (and Patientrack) reference sites increasing alongside growing Smartpage uptake. The continued uptake of its product suite and strategic headway made with key customers in UK and ANZ markets positions it favourably for a solid second half. 

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