General Discussion / Social Media, page-337

Confirms our previous suspicion that Henslow is somewhat involved with Alcidion in addition to arranging for Kate's appearance in Hong Kong.

Now we got both Henslow and Veritas involved with assisting with the book building - wondering what would be the price range for a company with poor liquidity such as Alcidion?

The only positives I can think of that would inform the price discovery are that:

(1) Alcidion achieved a positive 4C for Q1 - a profitable business, albeit only for one quarter. Excluding one-off transaction fees, it would be approximately $500,000.

(2) Alcidion has already secured $11.1 of contracted revenue so far for FY19, compared to the combined group unaudited revenue of $12.7 for FY18. With more than 7 months to go (realistically less given the festive season and holidays), Alcidion has already achieve 87% of the FY18 revenue figure. Surely, Alcidion can easily beat that figure right?

(3) Alcidion already has approximately $18 million of secured revenue (out to FY24 beyond FY19) and expects contracted revenue to increase as more multi-year contracts are signed

(4) Alcidion (via Patentrack) currently has a estimated 14% penetration rate of hospital beds in UK and Ireland (20,000/145,000). There is still a significant opportunity to expand and secure more customers.

(5) Two hospitals have already signed up for Alcidion integrated product suite - ACT and MidCentral. Opportunity exists for more existing customers to sign up for additional Alcidion product via cross-selling. With the additional sales staff that Alcidion have employed recently, surely this is achievable.

(6) Kate has flagged a focus on 'margins' which is an area I was concerned about. Given most of the costs are relatively fixed (e.g. labour), the only way to improve margins would be via revenues. The positive is that because costs are mainly fixed, any significant uplift in the revenue figure could 'potentially' have a more profound uplift impact on margins. This is good because our current margin of around 4% is too low in my opinion and Kate has indicated that there is little flexibility in addressing the costing side as the previous Alcidion and MKM Health both run very lean businesses.