Join our daily newsletter At The Bell to receive exclusive market insights
- Alcidion Group (ALC) reports a 39 per cent jump in overall revenue to $25.9 million, roughly $16.3 million of which came from recurring sources
- Gross profit also jumped 43 per cent, from $15.9 million to $22.8 million, while Alcidion’s gross profit margin widened from 85.9 to 88.3 per cent
- The results come from an accelerated growth strategy that focused on capturing a larger part of the UK market
- Over the next 12 months, the focus will remain on fostering growth across all its three regions and boosting the company’s workforce
- Shares in Alcidion are down 2.74 per cent to $0.36 at 11:16 am AEST
As its global expansion efforts continue, Alcidion Group (ALC) has reported record results for the 2021 financial year.
For the 12 months ending June 30, the Melbourne-based healthcare technology provider saw overall revenue jump 39 per cent to $25.9 million, roughly $16.3 million of which came from recurring sources — a 56 per cent increase compared to last year.
Gross profit also jumped 43 per cent, from $15.9 million to $22.8 million, while the company’s gross profit margin widened from 85.9 per cent to 88.3 per cent.
In a statement released this morning, Alcidion attributed the results to executing an accelerated growth strategy that focused on capturing a larger part of the UK market.
“Aligned with this growth focus is an M&A strategy which resulted in the acquisition of ExtraMed, adding new customers and capabilities in the UK market and establishing Alcidion as a leader for Patient Flow,” the company said.
“The record revenue result consisted of milestone contracts achieved across all three of our geographical markets.” Those markets are Australia, New Zealand and the UK.
Despite the promising results, however, Alcidion recorded an EBITDA loss of $510,000 — an improvement over last year’s loss of $3.8 million — which the company said reflects the need to invest in scaling the business for growth.
As of the end of the financial year, Alcidion had roughly $25 million in cash on its balance sheet.
Over the next 12 months, the focus will remain on fostering growth across all three regions and boosting the company’s workforce.
Also in the coming year, Chief Operating Officer Colin MacKinnon will stand down on September 30. Matt Gepp was appointed Chief Financial Officer in June, replacing Mr MacKinnon who covered the position, and the COO role will be made redundant.
Alcidion has started the 2022 year with $15.1 million in contracted revenue that’s yet to be realised — 18 per cent higher than this time last year. A further $2.9 million in scheduled renewal revenue is also expected to be converted into contracted revenue in 2022.
Managing Director Kate Quirke said of the results: “With nearly 40% growth in the past 12 months, we have secured a greater market share across Australia, New Zealand and the United Kingdom, and signed important new contracts that have provided us with a solid foundation going into the new financial year.”
While COVID-19 has presented some challenges, Ms Quirke continued, it had also served to highlight the role that Alcidion could play in addressing healthcare issues.
“Specific to the UK market, our growth will also be derived from the country’s focus to leverage Digital Aspirant programs and as we realise benefit from being listed on the Procurement Frameworks,” she said.
“Looking locally to the ANZ region, the focus in digital healthcare is on virtual care, achieving greater return on existing EMR investment and a need to improve patient flow throughout the healthcare system looking at logistics and efficiency.”
Shares in Alcidion are down 2.74 per cent to $0.36 at 11:16 am AEST.
