Alcidion Group (ASX: ALC) – healthcare EPR system in UK and Australia
COMPANY SCOREBOARD
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ABOUT COMPANY
Alcidion Group (ALC) (https://www.alcidion.com/) develops and licenses healthcare EPR software products in Australia, NZ, and the UK.
In April 2021, the company acquired ExtraMed, a leading UK provider of patient flow management software, for £5.3M (A$9.6M) cash, representing ~3.6x FY22 forecast revenue of $2.7m.
In December 2021, the company acquired Silverlink PCS Software, one of the largest and few remaining specialist Patient Administration System (PAS) providers servicing the UK NHS market, for £30.0M (A$55.5M) plus a further £3.0M (A$5.6M) earn-out, representing ~7x FY22 forecast ARR of $7.8m.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| ALC | 0.045 | 1342473221 | 60411294.945 | 7.9/(6.7) |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 10499 | 46.89% | 49.68% | 4.05% | 18832852 | last raise $5.4m@7.5c |
The outgoing director, Malcolm Pradhan, still holds 134.5m shares (10.61%)
BUSINESS
Below is the company’s past five years performance
| ALC | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 40400 | 34355 | 25882 | ||
| Cost of Sale | -5629 | -4862 | -3018 | ||
| Gross Revenue | 34771 | 29493 | 22864 | 0 | 0 |
| Gross Margin | 0.8607 | 0.8585 | 0.8834 | 0 | 0 |
| Overheads | -36310 | -31101 | -23625 | ||
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -36310 | -31101 | -23625 | 0 | 0 |
| Operation Profit | -1539 | -1608 | -761 | 0 | 0 |
| Other Revenue | -560 | 875 | 275 | ||
| Interest Expense | -14 | -44 | 9 | ||
| D&A | -3187 | -2256 | -457 | ||
| Income Tax | 1123 | -504 | -1310 | ||
| Net Profit | -4177 | -3537 | -2244 | 0 | 0 |
| NOTES |
For FY22, the company hasn’t generated much organic growth, the majority of the growth came from the two acquisitions which it might have paid too much.
For FY23, the growth in revenue was met with greater increase in staff costs.
Opening contracted and renewal revenue for FY24 expects to be $33.7m.
SUMMARY
UK’s economy has been in significant deterioration, and Australia is doing slightly better, but wouldn’t have too much capacity in the budget for the health system.