The Alcidion Group Ltd (ASX: ALC) share price dropped today after the company released its FY20 results. Despite revenue growth in challenging market conditions, Alcidion's share price dropped 2.14% to 14 cents at close of trade.
Alcidion aims to transform healthcare with smart, intuitive technology solutions for hospitals and allied healthcare providers worldwide.
What did Alcidion report?
The Alcidion share price fell heavily this year as the coronavirus pandemic disrupted business. Despite this, Alcidion was able to grow its revenue to $18.6 million, up 10% on the previous corresponding period. Notably, the recurring revenue base was $10.5 million, an increase 35% compared to FY19.
In the past year, the company has clinched significant contracts in each of its markets, and boosted its customer base. It reported that 307 hospitals in the United Kingdom, Australia and New Zealand now used an Alcidion product.
Operationally, the healthcare company invested in the expansion of its sales and marketing capabilities in the UK and ANZ. As a result, net operating cash outflows were $2.0 million in FY20. Alcidion delivered a net loss after tax of $3.1 million.
Despite this, the company maintained a healthy cash balance, with cash reserves of $15.9 million at the end of June. In November 2019, Alcidion raised $16.2 million via an oversubscribed placement to institutional investors.
Looking ahead
The Alcidion share price has entered FY2021 in a strong position, with $12.8 million sold revenue already contracted to be recognised in FY2021, and a healthy sales pipeline. Alcidion noted that it needed to sustain investments already committed in FY20 and to invest further in FY21 to complete the process of scaling the business. It expected to complete this investment phase during FY21 with the group cost-base stabilising.
Alcidion CEO Kate Quirk said the company had a tremendous growth opportunity ahead.
"While COVID-19 has presented short-term challenges, it has also served to underline the important role that Alcidion's solutions can play, enabling them to make informed decisions quickly and drive better outcomes for patients," she said. "Our technology is a key component of our customers' transition to digital healthcare."
