TIDMINHC
RNS Number : 8209I
Induction Healthcare Group PLC
21 April 2022
Induction Healthcare Group PLC
("Induction", the "Company", or the "Group")
Post-period end Trading Update
Very significant FY 2022 growth in-line with market
expectations
Strong cash position and breakeven at the adjusted EBITDA
level
Growing Annual Recurring Revenue stream and investment plan for
future growth
Induction (AIM: INHC), a leading digital health platform driving
transformation of healthcare systems worldwide, provides an update
on continued strong trading and outlook following the year ended 31
March 2022 ("FY22").
Following on from other recent positive announcements, Induction
has seen a very strong finish to trading for FY22. Contracted
annual recurring revenues ("ARR"), a key metric for the business,
has grown significantly to c. GBP15m (31 March 21: GBP1.8m).
Results for FY22 are in-line with already upgraded market
expectations for revenue and adjusted EBITDA (GBP12m and breakeven,
respectively) (31 March 21: GBP1.5m and GBP-4.8m ). In addition,
following the placing to raise GBP25m in June 2021, net cash as at
31 March 2022 was inline with expectations at c. GBP8m (31 March
21: GBP2.4m). Furthermore, following strong renewals of NHS England
Induction Attend Anywhere ("AA") contracts, the Group's cash
position has further increased significantly, post period end.
FY22 has been a transformational year for Induction following
the acquisition and successful integration of AA. Induction has
consolidated its leading position within secondary care across the
British Isles, and has established a business with strong and
growing ARR. As per recent announcements, the contract renewals for
video consultation services across NHS England, NHS Scotland and
the Scottish Government, as well as the contract renewal for AA in
Wales earlier in FY22, have validated the Board's decision to make
the AA acquisition. Notably it has delivered a strong base of
recurring revenues with the majority of contracts moving to
multi-year deals.
The contract win with the Department of Work and Pensions,
announced in November, also confirms the adaptability of
Induction's solutions and how they can be applied beyond a
healthcare setting. There is significant potential to grow revenues
further from AA across non-NHS services throughout the British
Isles and to replicate the success of the platform, within both
healthcare and non-healthcare settings, in other global
jurisdictions.
Induction Zesty ("Zesty"), a digital patient portal that allows
patients to book and manage their hospital appointments, view their
letters and clinical records and provide data remotely, has also
seen a dramatic increase in ARR during the period, up c. 100%
year-on-year.
The strong FY22 performance provides Induction with a robust
base on which to further expand total contracted ARR, and hence
recognised revenues, into FY23 and FY24 respectively. In addition
to the noted opportunities to expand ARR from AA, the Board
believes there is an opportunity to significantly increase the
adoption of Zesty ahead of original expectations. This is supported
by on-going nationally funded NHS programmes to ensure that every
NHS acute trust has in place, or is in the process of implementing,
a patient portal within this financial year. With an established
market presence, and through strategic collaborations with
third-parties such as the Cerner Corporation (NASDAQ: CERN),
Induction is in a leading position to roll-out Zesty as part of an
integrated solution supporting this Government-led drive for
digital transformation.
To take advantage of this major opportunity, Induction will
utilise its strong cash generation to invest above current
expectations in development, delivery and commercial resources.
This will not only underpin and de-risk FY23 growth forecasts, but
also accelerate both contracted ARR and recognised revenue growth
into FY24 and beyond. With the strong cash position that Induction
now enjoys, this investment ahead of growth can be made at the same
time as ensuring there is sufficient working capital within the
business to get it to a cashflow positive position in FY24.
Induction CEO, James Balmain, said: "We are delighted that our
FY22 performance has shown such considerable growth in-line with
market expectations which had already been upgraded during the
year. Annual recurring revenues - a key measure of our ongoing
success - have continued to grow and, with the recent AA NHS
England renewals in particular, we have generated more cash
post-period end than expected. Looking forward we see the scale of
the opportunity for Induction Zesty has materially increased in
recent months. We will use the extra cash that has been generated
to accelerate investment into our product development and delivery
capability, where we expect to see further growth in high quality,
stable revenues as the push for the digital transformation of the
NHS continues. We're very excited about the future prospects of
this business."
Investor Briefing
James Balmain, Chief Executive Officer and Guy Mitchell, Chief
Financial Officer will be hosting a live online presentation
relating to the Trading Update via the Investor Meet Company
platform at 16:30 BST on Thursday 12 May. The presentation is open
to all existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and
register for the presentation here:
https://www.investormeetcompany.com/induction-healthcare-group-plc/register-investor
Investors who already follow Induction on the Investor Meet
Company platform will automatically be invited.
- ENDS-
ENQUIRIES
Induction Via Walbrook PR Ltd: induction@walbrookpr.com
James Balmain, Chief Executive Officer
Guy Mitchell, Chief Financial Officer
Singer Capital Markets (Nominated Adviser
and Broker) +44 (0) 20 7496 3000
Philip Davies / Kailey Aliyar
Walbrook PR Ltd +44 (0)20 7933 8780
Alice Woodings / Stephanie Cuthbert
About Induction - www.inductionhealthcare.com
Induction (AIM: INHC) Induction delivers a suite of software
solutions through a single integrated platform that transform care
delivery. Our system-wide applications help healthcare providers
and administrators to deliver care at any stage remotely as well as
face-to-face - giving the communities they serve greater
flexibility, control and ease of access . Purpose-built for
integration with leading Electronic Medical Record (EMR) platforms,
our products offer immediate stand-alone value that becomes even
greater when integrated with pre-existing systems.
Used at scale by national and regional healthcare systems, as
well non-health government services, our applications are relied
upon by hundreds of thousands of clinicians and millions of
patients across almost every hospital in the British Isles.
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