Alcidion Rebounds to $1.65M Profit on 10% Revenue Boost and Cost Cuts
Alcidion Group Limited has reversed a significant loss from the previous year, reporting a $1.65 million profit for FY25 driven by new sales and a leaner cost base.
- 10% revenue increase to $40.8 million fueled by new ANZ and UK contracts
- Turnaround from $8.4 million loss in FY24 to $1.65 million profit in FY25
- Staff restructuring cuts costs by nearly $4 million
- Registered new Canadian subsidiary, though inactive during FY25
- Net tangible assets per security improved but remain negative
A Strong Financial Turnaround
Alcidion Group Limited, a health IT company listed on the ASX, has reported a remarkable financial recovery for the year ended 30 June 2025. After posting a loss of $8.4 million in the previous fiscal year, the company swung to a profit of $1.65 million, marking a significant milestone in its operational and financial restructuring efforts.
The turnaround was underpinned by a 10% increase in revenue, reaching $40.8 million. This growth was largely driven by new sales wins in both the Australia-New Zealand (ANZ) region and the United Kingdom, including contracts with Hume, Peninsula, NALHN, NCIC, and Hywel Dda. These new client engagements have expanded Alcidion’s footprint and contributed to a healthier revenue base.
Cost Discipline and Tax Benefits
Alongside revenue growth, Alcidion implemented a significant staff restructure in the second half of FY24, which yielded a $3.96 million reduction in staff-related expenses during FY25. This included a $3 million cut in ongoing staff costs and a $915,000 decrease in restructuring expenses, reflecting a leaner and more efficient workforce.
Additionally, the company benefited from a $1.33 million income tax benefit, largely due to the unwinding of deferred tax liabilities associated with the amortisation of acquired intangible assets. This tax benefit further bolstered the bottom line, contributing to the positive net profit.
Strategic Expansion and Balance Sheet Notes
In March 2025, Alcidion registered a new wholly owned subsidiary, Alcidion Canada Ltd, based in Ontario. While this entity did not commence trading or contribute to profits during FY25, its establishment signals the company’s intent to explore new geographic markets and diversify its operations.
Despite the profit turnaround, net tangible assets per security remain negative at $0.002, though this is an improvement from the prior year’s $0.005 deficit. The company did not declare any dividends, reflecting a cautious approach to capital management as it consolidates its recovery.
The FY25 financial statements were audited by William Buck and received an unmodified opinion, providing assurance on the accuracy and reliability of the reported results.
Bottom Line?
Alcidion’s FY25 results mark a pivotal recovery, but investors will watch closely for sustained growth and the impact of its Canadian expansion.
Questions in the middle?
- How will Alcidion leverage its new Canadian subsidiary to drive future growth?
- Can the company maintain revenue momentum amid evolving health IT market dynamics?
- What further cost efficiencies or investments might shape Alcidion’s profitability going forward?
