Alcidion Group (ASX:ALC) Ltd recorded record revenue of $25.9 million for the financial year ended on June 30, 2021, supported by strong growth in recurring revenues.
The recurring revenue base increased to $16.3 million, a 56% increase compared to the previous financial year.
Alcidion has also delivered positive operating cash flow of $1.5 million for FY21 and completed the fiscal year with a strong cash balance of $25 million.
However, EBIDTA resulted in a $500,000 loss due to the company’s continuous emphasis on investing in scaling up the business.
Accelerated growth plan
The company attributes the revenue to an accelerated growth plan adopted in a bid to capture the growing UK market along with milestone contracts achieved across all three geographical markets - Australia, New Zealand and the UK.
This was further complemented by an M& A strategy, resulting in the acquisition of ExtraMed, adding new customers and capabilities in the UK market and establishing the company as a leader in terms of patient flow.
The company said its gross profit margin of 88.3% reflected an improvement of 2.4%, driven by accelerated growth in licence fees, maintenance and subscription fees.
Managing director Kate Quirke said: “We have a tremendous growth opportunity ahead of us in the new financial year as Alcidion builds on the record-breaking momentum created in FY21.
“This will be achieved by accelerating sales across all regions.
“With nearly 40% growth in the past 12 months, we have secured 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.”
Focusing on growth
Quirke said: “We have pre-sold contracted revenue and scheduled renewals for FY22 of approximately $18 million as well as an established strong sales pipeline out to FY26.”
“While COVID-19 continues to present challenges, it has also served to underline the important role that Alcidion’ s solutions can play in helping healthcare providers to have a cohesive view of data, risks and resources, enabling them to make informed decisions quickly and drive better outcomes for patients.
“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.”
Changes in management
In tune with its aim of scaling growth, Alcidion continued to invest in people, adding key roles into the corporate structure in the areas of general counsel, people place, culture and Information Technology.
In June 2021, Alcidion appointed Matt Gepp to the role of CFO, a role previously performed by the company’s chief operating officer Colin MacKinnon, who is stepping down on September 30, 2021.
McKinnon was a founder of the MKM Health business, acquired by Alcidion in 2018, and has been a key part of the senior management team.
The company’s board has expressed gratitude to him for his contribution to the business over the past three years.
Forward outlook
For the current financial year, the company plans to continue its strategy of focusing on sales growth across all regions and scaling the organisation through investment in people to support its plan to become a global leader in healthcare technology.
Alcidion will also continue to execute its strategy to accelerate growth, focused on increasing share in its three existing markets, the UK, Australia and New Zealand.
The company will also invest in expanding UK and ANZ sales and marketing capabilities, improving product management, expanding product development, scaling up group infrastructure and investment in people.
Quirke 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. All of which align to Alcidion’s solution focus.
“Across all markets, Alcidion will continue to focus on the opportunity for Miya Precision with existing customers, ensure we are well placed with the emerging opportunities in our current markets and look to move into adjacent markets – as we continue to deliver our strategy of becoming a global leader in healthcare technology.”