General Discussion / Social Media, page-565

I have also been thinking about recent economic developments (e.g. falling property market and weaker residential housing constructions) and the possible impacts on the market.

Then I thought of some of Alcidion's traits that could help it steer through this weak environment.

(1) Offshore growth angle
Approximately 60% of Alcidion's revenues would come from offshore in FY19 (refer Vertitas report). I would expect this figure to increase due to the faster pace of technology uptake in other countries as Australia tends to be a follower. Given most economist are forecasting interest rates to remain low or even go lower, this can only be good for our offshore earnings.

(2) Structural growth angle
NHS long term plan has mandated for the move to paperless patient records and highlighted the application of AI to improve patient outcome and productivity. NZ also has it digital health strategy. Greater adoption of technology is no longer an option but a must have due to increased pressure on the health system, budget pressures and the renewed focus to get bigger bang for dollar. It is no longer a matter of if but when. Alcidion has already executed some contracts in UK and I see more being executed.

(3) Near-term catalysts
I believe the following catalysts are realistically possible:
- more cross-selling opportunities in different geographical, as evidenced by the two contracts executed for Alcidion's integrated product suite with Dartfordis and ACT Health
- shorter procurement time due to the perceived lower risk as the client is not the first mover
- greater validation of Alcidion's integrated suite once the post implementation outcomes compared with pre implementation base case is collected from Dartfordis and ACT Health, analysed, validated and publicised and promoted together by Alcidion, Dartfordis and ACT Health
- further positive cashflow results
- more deals being executed
- announcements of joint ventures with partners in the Asia-Pacific region
- exit of Blue Sky
- an institutional investor or 'big brother' coming on board to the share register

Unknown catalysts include:
- expansion to the North American market which I believe is still happening in the background but has taken a backseat to the UK
- announcement of collaboration with a multinational digital health company
- further M&A activity
- further reform to the healthcare delivery (e.g. mandated digital patient record keeping in Australia and penalties on hospital acquired complications)
- expansion to new markets such as the out-of-hospital care and primary and preventive health care sector