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Alcidion Group Limited, continues investment in growth

Team Veye | 28 Oct 2020 ASX - ALC
Alcidion Group Limited, continues investment in growth

Alcidion Group Limited (ASX: ALC)

Q1 FY2021 Business Update

The strong first quarter of sales, investment in growth continues

Alcidion Group Limited (ASX: ALC) on 27 October 2020 released its Appendix 4C for the three-month period ended 30 September 2020 (Q1 FY2021) and the below business update.

(Chart source: TradingView)

Highlights:

  • Strong start to FY2021, with $4.8M new contracted revenue sold in Q1 – up 30% on the previous quarter and up 92% on Q1 last year;
  • Total contracted revenue to be recognised in FY2021 stands at $14.7M at end Q1, up 14% on Q1 last year;
  • Cash receipts from customers were $6.4M in Q1, a 34% increase on Q1 FY20;
  • Net cash outflow of $1.2M, reflecting ongoing investment in growing the business with cash reserves of $14.7M at end Q1;
  • Significant contracts signed or announced since 1 July 2020:
  • Sydney LHD –12-month contract for Miya Precision to support COVID-19 virtual care
  • Murrumbidgee LHD – 12-month contract for Miya Precision platform including Miya Memory
  • NHS Lanarkshire – 5-year agreement to implement Patientrack across the board
  • ACT Health – 2-year extension to long term integration support contract and further project work
  • Queensland Health – additional work on the Referral Services Directory(RSD) platform
  • Lancashire Teaching NHS Trust – 5-year Smartpage contract
  • Panel contract with Vic DHHS for implementation and support of the Victorian Hospital Incident Management System (Data Source – Company Reports)

 

Veye’s Take

COVID-19 continued to challenge healthcare providers, particularly as the UK experiences a new wave of cases, though the operating environment had stabilised overall. Healthcare providers now had protocols in place to manage cases and were returning focus to digital health initiatives placed temporarily on hold. The stock had been in a correction mode on both short terms as well as long term charts. On the long term after forming head & shoulder pattern, it broke the shoulder line also indicating more fall. It could not cross long term resistance at $0.18 rather has even fallen below short term support at $0.13. “Buy” was given to “Alcidion Group Limited” at the price of $0.068 on 29 Mar 2019. It has given a fabulous return of more than 83% till now. Veye recommends a "Sell" on “Alcidion Group Limited” at the current price of $0.125

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