Thought it was a decent 4C - some positives and negatives.
Negatives:
New TCV sales of $1.8M, compared to $2.7M in pcp
Proportion of new TCV sales in Q1 to be recognised in FY23 has also fallen to 72%, compared to 88% in pcp FY22
Silence on the impact of the political turmoil in UK on Alcidion and the NHS
Falling British pound
Positives:
Continual upward trend in contracted revenue and cash receipts, particularly when considered in the context of a historically weak Q1
Improving free cashflow position. We are getting closer to the elusive inflection point.
Hints of significant opportunities progressing through to contract negotiation stage and expected to convert in Q2
Reiterate guidance for a positive cashflow and EBITDA positive in FY23
Like many investor, I am personally still waiting for evidence to validate the Silverlink acquisition. Still think the purchase price was too high, but understand the sense of urgency and rationale for the acquisition. I also suspect that over the near to medium, procurement will take longer (and hence maybe slower growth in revenues) because Alcidion is no longer offering a standalone smaller valued product such as Patientrack but is offering an integrated higher valued product offering (e.g. combination of Silverlink, Patientrack etc).
ALC Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
