Unaudited Interim Results for the six months ended 30 September 2022
05 December 2022, 08:27 UTC By inhc
05 December 2022, 08:27 UTC By inhc
Induction’s products power remote consultations, capture patient reported data and empower patients to self-manage their care pathway. They are designed around the needs of the patient and deliver cost and efficiency benefits to hospitals, regional care systems and governments. Used at scale by national and regional healthcare systems, Induction’s applications are relied upon by hundreds of thousands of clinicians and millions of patients across almost every hospital in the British Isles.
– Recorded Revenues up 54% to £7.1m (H1 2021: £4.6m) with organic growth across key products
– Induction Attend Anywhere revenues £5.6m (H1 2021: £3.6m)
– Induction Zesty revenue £1.1m (H1 2021: £0.6m)
– Adjusted EBITDA loss of £1.0m (H1 2021: £0.7m)
– Annual Recurring Revenues (“ARR”) at period end of £14.5m up from £13.5m at the start of H1 2022
– Cash position as at 30 September 2022 of £9.0m (31 March 2022: £7.5m)
– Strong start to the financial year with better-than-expected Induction Attend Anywhere renewals across NHS England
– Value Added Reseller agreement signed with System C for Induction Zesty
– Induction Zesty contracts with 8 further hospitals in England, building on the previously announced contract win with 4 hospitals in South West London
– Christopher Samler appointed as Non-Executive Chairman
James Balmain, CEO of Induction, said: “We are confident that the business is well-positioned to deliver continued revenue growth from its core products, Induction Attend Anywhere and Induction Zesty. It is however apparent that the rate of growth this year will be impacted by the delays we’ve seen in the implementation of centrally funded digitisation programmes and the general political turmoil of recent months. We don’t expect to see these opportunities drop away, rather they are now more likely to conclude next financial year.
“Despite these headwinds, we remain confident that overall year end revenues will show an improvement of at least 75% against our year end 31 March 2022 recognised revenues of £7.9m and we expect to grow our recurring revenues by at least 23% year on year. Both of these key metrics, whilst encouraging, are lower than our expectation and as a result the business is heavily focussed on underlying profitability and cash. We have initiated programmes internally to ensure our business is sized correctly to capture growth and to ensure that we do not have to raise further working capital pending reaching our objective of cash-flow breakeven by the fourth quarter of next financial year.
“Nothing has changed in terms of the critical need to further advance the digital transformation of the NHS, and in particular to drive efficiencies and support the reduction of extended waiting times. The strategic pillars for growth, as described in our recently published Annual Report remain as relevant as before and we remain confident about the future prospects of the Group.”
The Company will be hosting a live online presentation via the Investor Meet Company platform at 4pm (GMT) today. The presentation is open to all existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and register for the presentation here:
A recording of the presentation, a PDF of the slides used, and responses to the Q&A session will be available on the Investor Meet Company platform and the Company’s investor website afterwards.
James Balmain, Chief Executive Officer
Christopher Samler, Chair
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About Induction – www.inductionhealthcare.com
Induction (AIM: INHC) Induction delivers a suite of software solutions through a single integrated platform that transforms care delivery. Our system-wide applications help healthcare providers and administrators to deliver care at any stage remotely as well as face-to-face – giving the communities they serve greater flexibility, control and ease of access. Purpose-built for integration with leading Electronic Medical Record (EMR) platforms, our products offer immediate stand-alone value that becomes even greater when integrated with pre-existing systems.
Used at scale by national and regional healthcare systems, as well non-health government services, our applications are relied upon by hundreds of thousands of clinicians and millions of patients across almost every hospital in the British Isles.