Induction Healthcare Group PLC (AIM:INHC) said the level of contract renewal with NHS England for remote consultation services in secondary care for its Induction Attend Anywhere software suite has been “significantly above management expectations”.
The recent contract renewal process saw 94% of existing contracts successfully extended or renewed, starting from 1 April, equating to £6.6mln of annual recurring revenue in the 2023 financial year, the company said.
Furthermore, Induction said that whereas previously all contracts were for a one-year term, the new contracts are for up to three years, with the majority committing to at least two years, resulting in an aggregate contract value of £10.9mln.
Induction Attend Anywhere allows patients the option to attend a healthcare appointment via video.
James Balmain, chief executive of Induction, said: "When we acquired Attend Anywhere in June 2021, we knew that the change to regional procurement might present more of a challenge than national and were aware of the clear competitive pressure from global video conferencing providers, who've become household names during the pandemic. It is a testament to the strength and quality of our offering, and to the speed of business integration, that we were in a position to open negotiations within months of the acquisition and complete this complex process within deadline.
"The conversion rate for these renewals, and the fact that the majority have opted for multi-year contracts, shows that our purpose-built technology has not only become a trusted, long-term solution for secondary care in the UK, but one of the most widely used technologies to be rolled out as part of the digital transformation of the NHS. This not only reinforces the significance of the acquisition but also the intrinsic value that Attend Anywhere brings to the group as part of an integrated and all-encompassing digital health platform."
The company will provide a year-end trading update in late April.