Careteq Reports $4M Revenue and $0.4M EBITDA in First Half FY25

Operational Integration Driving Growth

Careteq Limited (ASX: CTQ), a clinical healthtech company focused on medication management, has delivered a positive update for the quarter ending December 2024. The company is making significant strides in integrating its Embedded Health Solutions (EHS) with HMR Referrals, aiming to create a unified medication management platform across aged, home, and disability care sectors. This integration is already yielding operational efficiencies and expanding service offerings, positioning Careteq for scalable growth.

The combined pharmacy and GP networks of both platforms have facilitated increased uptake in Residential Medication Management Reviews (RMMRs) and Home Medicines Reviews (HMRs), enhancing patient outcomes through a seamless end-to-end service.

Financial Performance and Cash Flow Improvements

Careteq reported unaudited revenue of $4 million for the first half of FY25, marking a 14% increase over the previous corresponding period. EBITDA for continued operations stood at $0.4 million, excluding one-off costs. Notably, net cash used in operating activities improved substantially from a $0.45 million loss to just $0.1 million, reflecting tighter cost controls and operational efficiencies.

The company ended the quarter with a cash balance of $0.85 million, supported by disciplined cost management and strategic investments. Vendor finance payments related to the EHS acquisition accounted for $0.3 million of investing cash outflows during the quarter.

Technology Platform Rollout and Cost Savings

Careteq remains on track to roll out its new integrated operating platform in Q4 FY25. The transition of customers from the legacy Mederev platform to the Ward MM platform has strengthened cybersecurity and service standards. The planned decommissioning of the Mederev platform in February is expected to deliver annualised savings of $50,000, with further ongoing savings anticipated once the new platform is fully operational.

Strategic Partnerships and Market Expansion

Business development efforts continue to focus on expanding strategic partnerships within the aged care and home care sectors. Careteq’s collaboration with the Pharmaceutical Society of Australia (PSA) has enhanced its presence in pharmacist training and referral pathways, supporting growth opportunities. The company is also advancing partnerships with key home care providers to broaden service delivery.

Regulatory and Outlook Considerations

Careteq is actively engaging with the Australian Taxation Office (ATO) regarding historical R&D claims, with a response expected in the coming months. The Board has enlisted experienced advisers to assist in resolving this matter.

Looking ahead, Careteq is trading ahead of budget year-to-date, with expectations for continued revenue and EBITDA growth in FY25. The company’s strategy of divesting loss-making units while acquiring profitable businesses, combined with the full integration of EHS and HMR Referrals, underpins its optimistic outlook.

Key priorities for the next quarter include finalising the integrated platform rollout, expanding strategic partnerships, and scaling operations to meet rising demand in the aged care and home care markets. Careteq’s streamlined operations and disciplined financial management position it well to deliver sustained growth and shareholder value.