No worries @MADX - you have also raised some very good points as well in terms of target audience etc.
To be fair to Alcidion, however, there has been a gradual evolution in their marketing and presentation. This is evident if we compare the latest presso to those released pre and post MKM Health acquisition. We went from being heavy on the technical side to focussing on the operational metrics before moving towards focusing more on the financial metrics lately. My view is that this gradual evolution is in response to both the cycle that the company is in and shareholders' (both institutional and retail) comments.
For example, if you recall, there has been some recent discussions on gross margins, cost of sales, breakdown of revenue components etc. No coincidences that recent presentations seem to have a stronger financial information emphasis to provide some clarity on those matters, including explaining changes in the approaches used moving forward. Again, my view is that the company is aware that it needs to attract more institutional support moving forward. Talk is cheap - What institutional investors want is validation of your product, sales and growth strategies via the underlying numbers.
If I understand things correctly, we will have a good 4C either Q2FY21 or, more likely, Q3FY21. This would be mainly driven by the recent $9.5M South Tees' contract for the following reasons:
The £28 million Digital Aspirant programme is only available for the first year
The programme was announced by the UK Health Secretary in December 2019, but the 23 selected NHS Trusts were only confirmed by NHSX in March 2020.
In the UK the financial year began on 1 April 2020, and runs until 31 March 2021, for the purposes of government working out their finances and budgets
There is an emphasis on the selected NHS Trusts to utilise their grant funding in the financial year to which the funds are granted, as reiterated by Kate in the webinar
Because the South Tees contract is structured in such a way that it is heavily front loaded with approximately $5.48M of the total contract value is planned to be recognised as revenue in FY2021 (subject to milestone achievement), I suspect there is a sense of urgency in dispensing the grant funding as soon as practicable before the end of the UK financial year and therefore potentially boosting the cash inflow in either Q2 or Q3 of FY21. However, there can be a small difference in the timing of the cash inflow and revenue recognition.
ALC Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
