ALC ALCIDION GROUP LIMITEDHealthcare services – Overnight Price:...

ALC ALCIDION GROUP LIMITED
Healthcare services – Overnight Price: $0.36

Bell Potter rates ((ALC)) as Buy (1) –

Alcidion Group has announced the acquisition of UK-based ExtraMed for $9.6m following a $17.5m capital raise.

ExtraMed provides patient flow management software and comes with nine existing UK NHS trust contracts, which Bell Potter notes provides opportunity for cross and upselling for Alcidion's commercial UK rollout. This includes six NHS sites new to Alcidion, which could each contribute an average of $1m of recurring revenue.

Additionally, Alcidion was announced as a provider for a major healthcare information technology project with the Australian Defence Force that represents potential revenue of $21m over the next 5.5 years.

Alcidion's contracted revenues to date for the financial year stand at $24.7m, representing a 33% growth on the previous year.

The Buy rating is retained and the target price increases to $0.45 from $0.30.

This report was published on April 28, 2021.

Target price is $0.45 Current Price is $0.36 Difference: $0.09
If ALC meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources