Induction Healthcare Group PLC (AIM:INHC) said it expects to break even at the adjusted EBITDA level in the current year, beating market forecasts.
Revenue for the year to March 2022 is predicted to be in line with market estimates, the flexible care company said in its earnings release.
It said it experienced a “transformational leap” in annual recurring revenue (ARR) with a rise of 929% in the first half to £14.4mln following the £25mln fundraise and acquisition of Induction Attend Anywhere in June.
“This puts the company firmly on the path towards an adjusted EBITDA breakeven position and cash generation before the end of FY23,” it said.
“As health systems around the world engage in their post-pandemic recovery, digital platforms are playing a vital role and with Induction Attend Anywhere, Induction is operating at scale on the ground floor of this opportunity.”
Induction reported revenue of £4.6mln for the six months ended 30 September 2021, compared with £582,000 in the same period the previous year, boosted by a £3.2mln contribution from Induction Attend Anywhere.
It ended the first half with £11.4mln of contracted revenue for the full year and since the period-end has secured £6.8mln of contracted revenue for the final six months of the year.
Underlying losses (adjusted LBITDA) narrowed to £0.7mln from £2.4mln in the first half, while pre-tax losses increased to £5.6mln from £3.1mln.
Cash stood at £12.8mln at end-September, up from £5mln a year earlier, leaving the company well placed to deliver on its buy-and-build strategy.
"We are delighted to have reported such strong revenue growth, alongside a significant improvement in our underlying profitability," chief executive James Balmain said.
“We've seen strong user growth across our range of products and are continuing to integrate and reduce costs at Attend Anywhere which we bought after a successful fundraising in June. We've delivered a record level of ARR at the period-end which puts us on track to exceed market expectations for EBITDA in FY22.”
Balmain said a number of Induction Attend Anywhere’s one-year contracts in England expire in March 2022.
“We currently expect to renew a very high proportion of all existing Induction Attend Anywhere contracts in England, and with many for a longer term of two years or more, although likely at a slightly lower contract value than under the previous one-year terms,” he said.
Shares climbed 2.22% to 46p in opening trade.