Alcidion Group Limited reported a robust Q3 FY25 with $13.1 million in cash receipts and a landmark 10-year $37.5 million contract with North Cumbria NHS Trust, prompting an upgrade to its full-year EBITDA guidance.
- Q3 cash receipts of $13.1M with positive operating cashflow of $2.5M
- New total contract value (TCV) sales of $48.8M, including a $37.5M NHS contract
- Signed first Welsh contract with Hywel Dda University Health Board worth $5.5M
- FY25 contracted revenue at $40.2M with no debt and $10.2M cash balance
- Upgraded FY25 EBITDA guidance to exceed $3.0M with positive full-year cashflow expected
Strong Q3 Performance Amid Strategic Contract Wins
Alcidion Group Limited (ASX:ALC) has delivered a compelling third quarter for FY25, underscored by $13.1 million in cash receipts and a positive operating cashflow of $2.5 million. This marks a significant turnaround from the prior year’s Q3 cash outflow of $1.4 million, highlighting improved operational efficiency and cash management.
The quarter’s standout achievement was securing a $37.5 million, 10-year milestone contract with North Cumbria Integrated Care NHS Trust to implement a new Electronic Patient Record (EPR) platform. This contract not only reinforces Alcidion’s foothold in the UK healthcare IT market but also promises to materially boost recurring revenue streams over the long term.
Expanding UK Presence with Welsh Market Entry
In addition to the North Cumbria deal, Alcidion inked its first contract in Wales, a five-year, $5.5 million agreement with Hywel Dda University Health Board. This contract, awarded through a competitive tender, involves deploying modules from the Miya Precision suite, including Flow, Observations & Assessments, and Smartpage. The Welsh contract signals Alcidion’s strategic expansion into new regional markets within the UK, leveraging its patient flow solutions that have already gained traction in the UK and ANZ.
Renewals of several Patient Administration System (PAS) contracts during the quarter further underpin the company’s recurring revenue base, providing stability and predictability to future cashflows.
Financial Health and Upgraded Guidance
At quarter-end, Alcidion reported $40.2 million in contracted and renewal revenue scheduled for recognition in FY25. The company’s cash position remains strong with $10.2 million on hand and zero debt, positioning it well to fund ongoing operations and growth initiatives.
CEO and Managing Director Kate Quirke expressed confidence in the company’s trajectory, noting that the implementation of the Miya platform at North Cumbria has commenced, enabling early realisation of benefits. She highlighted the record cash receipts and positive operating cashflow as indicators of robust business momentum.
Reflecting these strong results, Alcidion upgraded its FY25 guidance, now expecting EBITDA to exceed $3.0 million and forecasting a positive full-year cashflow outcome. The company anticipates a strong Q4, historically its best quarter for cash receipts, supported by a debtor ledger of $17.7 million at the end of Q3.
Outlook and Market Positioning
Alcidion’s expanding contract portfolio and solid financial footing underscore its growing influence in the healthcare IT sector, particularly within the UK’s NHS framework. The company’s focus on modular, interoperable solutions like Miya Precision aligns well with healthcare providers’ increasing demand for integrated patient flow and clinical decision support technologies.
With over 400 hospitals and 87 healthcare organisations served across the UK, Australia, and New Zealand, Alcidion is well positioned to leverage its technology and market expertise for further geographic and product expansion. The recent Welsh contract could serve as a springboard for additional opportunities in that region.
Bottom Line?
Alcidion’s Q3 momentum and upgraded guidance set the stage for a potentially transformative FY25, with execution on new contracts critical to sustaining growth.
Questions in the middle?
- How quickly will revenue recognition ramp up from the North Cumbria EPR contract?
- What are the prospects for further expansion in the Welsh healthcare market?
- How will Alcidion balance growth investments with maintaining positive cashflow?