Avia Health Informatics' expanding UK client base helps meet short term challenges

Avia Health Informatics (LON:AVIA) is expanding its client base in the UK despite the uncertainty in the NHS.

The company has won three new contracts for its Odyssey clinical decision support systems, with NHS Primary Care Trusts (PCTs) and University Health Boards (UHBs) across the UK. 

Also, on the international front it has now incorporated a subsidiary in the United States and it has secured its first distribution partner in Australia.

"Despite the uncertainty in the NHS, we continue to expand our client base and are very excited to be supporting three additional UK PCTs,” Avia chairman Barry Giddings commented.

Avia joined London’s AIM market in November 2009, following a reverse takeover of The Plain Software Company. Subsequently it has progressed Plain’s clinical decision making technology - the Odyssey software suite - by working on new products and applications. 

The new contracts see Odyssey products being rolled out in Lincolnshire, in Portsmouth and across the entire North Wales region.

The North East Lincolnshire PCT has signed a 3-year contract for the Odyssey Reception and Odyssey TeleAssess products, to help it manage its out-of-hours services. 

This latest contract win in the area means that the Odyssey software is now being used for all of Lincolnshire's out-of-hours services.

The Portsmouth City NHS trust has signed a 3-year contract for Odyssey TeleAssess, the product will be used as part of its newly expanded out-of-hours services.

It has also taken the Odyssey Face-To-Face product for its walk-in-centre and minor injuries unit.

In North Wales the Betsi Cadwaladr UHB has signed a contract for Odyssey TeleAssess.

Betsi Cadwaladr, which encompasses several former PCTs that cover the whole of North Wales, recently decided to bring its out-of-hours services ‘in-house’. 

Avia claims that the user friendly Odyssey software can support care providers with limited clinical expertise - thus saving expensive ‘man-hours’ - and it can help improve efficiency by ensuring that patients’ are assessed appropriately.

On its corporate website, Avia highlights research that claims that half the patients who request same day appointments in GP surgeries could be adequately managed over the phone, with most of them being offered self-care advice. 

The software is used for more than 60 percent of English’s PCTs out-of-hours services.

In a separate statement, Avia also published its interim results statement for the six months ended 30 September 2010. 

Avia generated around £1 million in revenue in the first half, down slightly from £1.1 million reported the comparative period in 2009.  Subsequently it reported an operating loss of £260,000 which was up £110,000 from H1 2009. However its cash position is better than the comparative period, as it ended the first half with £252,000 in the bank after spending £223,000.

And whilst the latest contract wins are a clear positive, Giddings cautioned: “The short term outlook within the UK remains challenging,”

“As a result Avia is forecasting slightly lower full year revenues than previously expected which will render modest losses.” 

However with the reference to the impact of the UK government’s Comprehensive Spending Review (CSR) Giddings was distinctly upbeat:

“The company is confident that as GP commissioning widens the company's market opportunity in areas such as care homes, face-to-face assessments in nurse-led clinics, walk-in centres and GP-led health centres will increase.” 

“This is in addition to the opportunities in global shipping and healthcare provisioning in developing countries,” Giddings added.  

Indeed, growing its international reach has been a key focus for Avia. The international marketing push has been driven by the addition of senior sales staff to target new territories. 

Importantly the company is currently broadening its product range with several new applications, which utilise mobile communications devises, coming through the pipeline.

With the newly incorporated US business, Avia Health Informatics Inc, now established it can start to make direct sales in the huge healthcare market.

The company said it would also be looking for resellers to help it distribute the Odyssey products in the USA, Latin America and Canada.

Meanwhile in Australia it has already reached such an agreement, with Clarity Business and IT Solutions being appointed as Avia’s first Australian reseller.  

Avia highlighted Clarity’s positive track record in public sector IT projects in Australia.