As we head towards the end of the first quarter of FY23 we wanted to provide an update on our performance and full-year results.
We published a Business update to the ASX on 15 September 2022 which you can view here.
Overall our available cash remained strong while our Total revenue and Income for FY22 decreased 7% due to new contract signing delays. Total expenses increased due to planned recruitment and we also experienced wage pressures across the health sector. Operating cash flow closed at ($1,182,000) deficit for the year.
Recurring revenue base of the business increased by 10% to $5.19m. Professional services were down 58% due to onboarding delays and covid restrictions. However, we have already seen an uplift in one-off revenue in the FY23 numbers as a result of sales closed late in FY22.
The uplift in Recurring revenue from new contracts secured was late in H2 FY22. H1 FY23 Contracted Annual Recurring Revenue (CARR) will exceed the FY22 full-year results with an increase of $800k secured since April 2022.
As our pipeline has expanded, we have now recruited a new Business Development Manager to drive sales in NSW and QLD. Our new website has been released master-care.com.au and we are attending more events and activities to increase our brand profile. There is a focus on pipeline conversion and targeted cross-sell activities to drive revenue outcomes.
We have recently implemented solutions for Waratah, Western Australian Mental Health Commission, Ballarat and Peninsula Health.
We are also delighted with a number of recent contract wins across Australia including Homeless Healthcare (WA), Peninsula Health (VIC), Arcadia Pittwater Hospital (NSW), Matilda Nepean Private Hospital (NSW), and Waikiki Private Hospital (WA). In addition, in FY23 we have secured Yarram District Health Service (VIC) and Latrobe Community Health (VIC).
We have successfully rolled out a new Account Management model, a consultative engagement model as well as a structured support model for quicker client resolutions. We have a number of pilots underway to test solutions with clients and we are leveraging user groups as a ‘sounding board’ for additional development opportunities.
The Connect mobile application, for in-home care, has been launched as well as Patient Portal integration for greater patient engagement.
We previously identified a gap for private and independent hospitals to digitise their patient records, this integrates with our existing Patient Administration system (PAS). We are working very closely with clients to co-design this solution, with the first modules to be released in late 2022. Inpatient EMR offers clients a roadmap to complete digitisation and supports an international standard for data exchange which enables our clients to easily integrate into other systems. The solution will be feature-rich and web-based and many clients have already expressed interest.
Following a period to assess ASEAN opportunities, there have now been appointments made to drive these opportunities forward, including Martin Murnaghan as Non-Executive Director to drive overseas market development as well as a Regional CEO Robin Armstrong, appointed to drive and develop ASEAN opportunities. The focus is on expanding B2B partnerships and client growth; facilitate expansion as well as drive subscription revenue from the Global Health community portfolio of patient-centric SaaS solutions, which provide a rich set of digital engagement tools and secure connectivity.
Overall we have a strong balance sheet and a positive pipeline of opportunity. Deals were slow to sign in FY21-22 due to federal election and budget constraints but we are seeing decision-making timings return to normal.
Our in-home care capabilities position us well to capitalise on this rapidly emerging demand in healthcare. Recruitment in sales alongside increased brand and conversion activities will drive top of funnel and pipeline. Our new MasterCare website will also improve conversion.
Our recent contract wins have driven an uplift of over $800k in Contracted Annual Recurring Revenue(CARR) and an increase in Contracted Professional services (one-off) of $1.3M since April 2022.
Thanks for taking the time to read this update, we hope you found this useful. If you need more information please see below for contact details. We look forward to providing you with further updates to keep you informed and updated on our activities and results.
Kind regards,
Michael Davies
CEO, Global Health Limited
E: michael.davies@global-health.com