18 Jul Global Health Limited Announces June 2024 Quarterly Business Activity Report
Result highlights include:
- Operating Cashflow Growth: Operating cashflow in the June-24 quarter surged by 666% compared to June-23, reaching $419K.
- Strong Financial Position: Closing cash balance as of 30 June 2024 stood at $2.066M, inclusive of $596K in Convertible Notes.
- Successful Implementation of MasterCare: MasterCare was successfully implemented at Latrobe Community Health Service, involving the transfer of one terabyte of data from prior systems and the training of over 800 users.
Global Health Limited (ASX: GLH) (“Global Health” or “the Group”) is pleased to release its Appendix 4C Cash Flow Report for the quarter ended 30 June 2024 (Q4 FY24), and the accompanying Quarterly Business Activity Report.
The financial performance commentary for the June-24 Quarter is relative to the Previous Corresponding Period (PCP) being the June-23 Quarter. From 1st July 2023 all R&D expenditure has been expensed. PCP comparisons have been adjusted with capitalised R&D added back to operating expenses to ensure like-for-like comparisons. Financial estimates of revenue, expenses and profitability are subject to audit.
Financial Commentary
Operating Cashflow improves by 666% on PCP
The Company continued to improve our cashflow with YTD revenue up 11% to $8.7M and total Operating expenses reducing by 15%. This resulted in an operating cashflow surplus of $419K, up 666% on the PCP.
Group Free Cashflow improves by 188% from ($387K) to $339K
The positive operating cashflow flowed through to the overall group cashflow with a 188% improvement from ($387K) to $339K, representing an improvement of over $727K or 188% on the PCP.
The closing cash balance as at 30 June 2024 was $2.066M which included $596K of convertible notes maturing on 17 June 2027.
Over the six months to 30 June 2024, the Company generated an operating cash surplus of $199K representing an improvement of 116% or $1.421M over the 6 months to 30 June 2023.
The return to profitable half-year operations with R&D 100% expensed is a significant milestone for the Company.
June-24 Quarter Activity
The major activity in the June quarter was supporting the implementation of MasterCare across the Latrobe Community Health Service (LCHS). This involved the transfer of one terabyte of data from the previous systems and the configuration and training of over 800 end users. LCHS successfully went live on 1 July.
The other activity was the re-commencement of the re-platforming of our Provider Systems to the composable SaaS architecture of the MasterCare Plus successor for our on-premises applications, and the integration of our Digital Front Door to our on-premises applications as well as the MasterCare Plus SaaS platform.
In the June quarter, the Company successfully completed the transition of our Data Centre from Macquarie Telecom to Microsoft Azure. The Company also published two MasterCare Plus packages for Referral Management and Secure Messaging on the Microsoft Global Marketplace. Further MasterCare Plus bundles will progressively be published on the Microsoft Global marketplace. In parallel, the Company has initiated incorporating Artificial Intelligence into our SaaS platforms working initially with Microsoft, given their leadership in this area.
A significant backlog of functional and performance issues across our provider platforms have been addressed with the sales and marketing team now focusing on new revenue growth from new and existing customers. In the June quarter, over $360K of new revenue was secured.
Due to the challenging external environment confronting the healthcare industry and the capital markets, the Board took the decision to secure contingency funds of up to $1M through the issue of Convertible Notes to sophisticated Investors. As of 30 June, $596K in Convertible Notes were issued with the remainder expected to be completed by early August.
Forward outlook & growth strategy
The Board’s decision to restructure and re-focus the Company’s operations are reflected in the increased revenue and reduced operating expenses. These benefits are expected to continue in FY24/25.
There is much media coverage of the challenges facing the private hospital sector and debt levels of the state and federal government which fund public sector healthcare services. Increased labour costs, higher energy costs and increased interest rates combined with ongoing inflationary pressure has resulted in healthcare providers needing to improve their productivity and efficiency. This presents opportunities for Global Health to offer digital solutions across the healthcare sector.
The Company’s broad portfolio covering the full patient journey from initial assessment through to rehabilitation and recovery. The secure sharing of sensitive clinical information through secure messaging, the wide support for Mental Health services through our clinical and administrative systems and the exceptional value of our solutions provides a confidence that the Company will continue to track towards sustainable positive cashflow and profitable operations.
Research and development expenses have averaged more than $200K per month over the last two financial years, representing over 30% of revenue each year. This will trend down towards more acceptable industry standard levels of 20%, as the revenue continues to grow with the new R&D incorporating AI into our platforms and the release of a Data Lake for enhanced business intelligence initially using Microsoft’s Power BI.
This ASX announcement has been authorised by the Board of Global Health Limited (ASX:GLH).
For further information, please visit the ASX website here