Hi @chaddy36Still here and holding. We are where we are, in...

Hi @chaddy36

Still here and holding.

We are where we are, in respect to Alcidion. Operational wise, Kate is still delivering, albeit some were delayed due to circumstances outside of the company's control. Personally, I am still waiting for the Silverlink acquisition to deliver. No doubt it would in some shape or form but question is the magnitude.

Market's reaction to the record Q4FY23 results clearly highlight one of the key challenge for Alcidion. That is, even though new sales are still being made with a decent proportion of the revenue flowing through as cash, market is clearly still waiting for the bigger value contracts to land. Until then, I suspect it would be a case of "meh"...

The silver lining for me is that the cash for the NHS Trusts has landed and they have to spend it by end of March. I would therefore be closely monitoring progress over the next 10 months or so. If we cannot win some decent sized contracts, maybe that would suggest a change in my investment thesis for Alcidion and also the strategy and oversight of the execution by the board. But like most things, things can change quickly for better or worse in the UK due to the political landscape.

Assuming Kate is on top of things, maybe FY24 is really the inflection point where operating leverage really kicks in.

Also pleasingly, I know have a better understanding of what 'pipelines' meant. Approximately $33.7M of contracted and scheduled renewal revenue expected to be recognised in FY24 provides good visibility of the business. Obviously, an increase in uptake of modules by existing customers without having to go through another procurement process would increase the revenue figure.

Obviously Kate is also more guarded this time around providing any profit guidance after been bitten by what happened in FY23 where factors outside of the company's control forced the company to back away from previous guidance. Lesson learnt but, to be fair, it was always going to be a double-edged sword. A classic case of damn if you do, damn if you don't!

Recent interviews also highlight potential geographical expansion. Not sure if I want the company to pursue it right now as I prefer them to get the foundations set first and to be self funding before looking to expand further. I would not look too kindly on any further capital raise to fund geographical expansion and prefer the Silverlink acquisition and the board to prove themselves first before entertaining those expansion thoughts.