Induction Healthcare Group PLC (AIM:INHC) has announced its unaudited interim results showing a period of continued revenue growth driven by the company's leading position in providing products to support the digitization of healthcare delivery.
For the six months ended 30 September 2022, the company recorded revenues up 54% to £7.1mln (H1 2021: £4.6mln) boosted by organic growth across its key products.
The company said Induction Attend Anywhere revenues were £5.6mln (H1 2021: £3.6mln), while Induction Zesty revenue was £1.1mln (H1 2021: £0.6mln).
Annual Recurring Revenues (ARR) at period end were £14.5mln, up from £13.5mln at the start of H1 2022, and the company had a cash position as of 30 September 2022 of £9.0mln (31 March 2022: £7.5mln). Its adjusted EBITDA loss for the first half was £1.0mln (H1 2021: £0.7mln).
READ: Induction Healthcare says interim chief financial officer and new senior independent director appointed
Induction highlighted a strong start to the financial year with better-than-expected Induction Attend Anywhere renewals across NHS England.
It noted that Induction Zesty has signed a Value Added Reseller agreement with System C, and said Induction Zesty also inked contracts with eight further hospitals in England, building on the previously announced contract win with four hospitals in South West London.
In the results statement, James Balmain, CEO of Induction, commented: "We are confident that the business is well-positioned to deliver continued revenue growth from its core products, Induction Attend Anywhere and Induction Zesty. It is however apparent that the rate of growth this year will be impacted by the delays we've seen in the implementation of centrally funded digitisation programmes and the general political turmoil of recent months. We don't expect to see these opportunities drop away, rather they are now more likely to conclude next financial year."
He added: "Despite these headwinds, we remain confident that overall year-end revenues will show an improvement of at least 75% against our year-end 31 March 2022 recognised revenues of £7.9m and we expect to grow our recurring revenues by at least 23% year on year. Both of these key metrics, whilst encouraging, are lower than our expectation and as a result the business is heavily focussed on underlying profitability and cash. We have initiated programmes internally to ensure our business is sized correctly to capture growth and to ensure that we do not have to raise further working capital pending reaching our objective of cash-flow breakeven by the fourth quarter of next financial year.
"Nothing has changed in terms of the critical need to further advance the digital transformation of the NHS, and in particular to drive efficiencies and support the reduction of extended waiting times. The strategic pillars for growth, as described in our recently published annual report remain as relevant as before and we remain confident about the future prospects of the group."
Induction's products power remote consultations, capture patient-reported data and empower patients to self-manage their care pathway. They are designed around the needs of the patient and deliver cost and efficiency benefits to hospitals, regional care systems and governments.
Used at scale by national and regional healthcare systems, Induction's applications are relied upon by hundreds of thousands of clinicians and millions of patients across almost every hospital in the British Isles.
Investor Presentation
Induction said it will be hosting a live online presentation via the Investor Meet Company platform at 4pm (GMT) today, Monday 5 December 2022.
The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and register for the presentation here: https://www.investormeetcompany.com/induction-healthcare-group-plc/register-investor
A recording of the presentation, a PDF of the slides used, and responses to the Q&A session will be available on the Investor Meet Company platform and the company's investor website afterwards.