Here’s why the Austco (ASX:AHC) share price is rocketing 12% today

The healthcare company’s shares are closing in on a multi-year high.

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The Austco Healthcare Ltd (ASX: AHC) share price is rocketing higher today following the announcement of a contract win.

Founded in 1986, Austco is a global manufacturer of nurse call systems and clinical communications solutions for hospital and aged-care facilities.

The healthcare company’s share price spent most of the afternoon up around 8% trading at 13 cents, before surging higher in the final moments of trade. The Austco share price closed the day at 14 cents, up 12.5%.

Austco expands client base

Investors are buying up Austco shares in light of the positive update made to the ASX this morning.

According to its release, Austco advised it has been selected to supply its Tacera Nurse Call platform to Khoo Teck Puat Hospital (KTPH)

Based in Singapore, the KTPH is a 795-bed general and acute care hospital. The building services more than 550,00 people living in the northern sector of Singapore.

KTPH is a part of Yishun Health, a network of medical institutions and health facilities under the National Healthcare Group. This comprises Admiralty Medical Centre, KTPH, and Yishun Community Hospital. It also includes community extensions such as Wellness Kampung.

Austco said the $3.3 million contract with Yishun Health would ensure that patients at KTPH received a high standard of personalised care.

The Tacera platform includes call points with built-in real-time locating system (RTLS) and webservices interfaces. In addition, software such as enterprise reporting and analytics and dashboards are to be included.

Austco CEO Clayton Astles commented:

We are excited to partner with the Khoo Teck Puat Hospital.

At Austco, we are constantly looking for ways to enhance our innovative solutions and our recent updates to the exceptional Tacera nurse call system delivers a world-class experience for healthcare facilities and every patient.

The Tacera Nurse Call platform is being planned for deployment in the first quarter of FY22, with completion by December that year.

Austco share price summary

Over the past 12 months, Austco shares have accelerated by more than 50%, and are up over 25% year-to-date. The company’s share price reached a multi-year high of 15 cents early last month.

Based on today’s price, Austco presides a market capitalisation of roughly $35 million, with approximately 284 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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