IMEXHS Faces Working Capital and Market Risks Despite Promising Aquila+ Launch

Strong Financial Momentum in FY24

IMEXHS Limited (ASX: IME), a provider of cloud-based medical imaging software and radiology services, delivered a solid financial performance in the year ended December 2024. The company reported a 34% increase in sales revenue to $26.5 million, with recurring revenue now representing 97% of total revenue. Underlying EBITDA rose to $0.5 million, reflecting improved operational efficiency and disciplined cost management.

Despite ongoing working capital pressures, particularly in its Radiology Services division (RIMAB), IMEXHS managed to settle a longstanding slow-paying debtor, easing cash flow constraints. The company closed the year with $2.1 million in cash and $1.2 million in debt, positioning it for further investment in growth initiatives.

Aquila+: A New AI-Enabled Value Proposition

The highlight of IMEXHS’s strategic progress is the launch of Aquila+, an entirely new, AI-enabled medical imaging software platform. Developed over 2024 and launched in early 2025, Aquila+ integrates advanced artificial intelligence tools, enhanced security with ISO 27001 certification, and a cloud-native architecture designed for fast deployment and scalability.

Already installed at eight sites, Aquila+ has garnered strong market interest through high-profile launch events attended by over 400 partners and potential distributors across 14 countries. The platform promises to boost productivity, reduce storage costs by up to 40%, and improve diagnostic accuracy for radiologists, while offering secure, 24/7 access to imaging results for patients and clinicians alike.

Geographic Focus and Market Expansion

IMEXHS continues to concentrate its efforts on Latin America, where it has established a strong footprint with software deployed across 546 sites in 18 countries and a radiology services network operating 36 centers in Colombia, Spain, and Mexico. Colombia remains the largest market, but Mexico, Ecuador, and Peru are identified as key growth areas for 2025.

Recent contract wins, including multi-year agreements with Clinica del Occidente and Hospital Moncaleano in Colombia, are expected to add $183,000 in annual recurring revenue. Additionally, an extension with Diodiagnostico increased its annual recurring revenue contribution to $490,000, underscoring the platform’s growing adoption.

Operational Improvements and Outlook

IMEXHS has made strides in improving the profitability of its Radiology Services business by renegotiating contracts and controlling costs, with margin expansion anticipated in 2025. The company is also enhancing its sales and marketing capabilities, particularly in Mexico, to accelerate software revenue growth, which rose 34% in 2024 and is expected to gain further momentum in the second half of 2025.

Looking ahead, IMEXHS forecasts strong revenue growth and expects to be EBITDA and cash positive for the full year 2025, with the majority of gains occurring in the latter half. The company plans to provide more detailed guidance at its half-year update.

Governance and Shareholder Support

At the 2025 Annual General Meeting, shareholders approved all resolutions, including the re-election of directors and the grant of options to key executives and non-executive directors. A recent capital raising via placement and a share purchase plan raised approximately $2.5 million, providing additional funds to support growth initiatives without over-reliance on continual capital raises.

Management emphasized its commitment to delivering on the promise of Aquila+ and driving sustainable, profitable growth, while improving communication and engagement with shareholders.