The managing director's report is a particularly good read as it...

The managing director's report is a particularly good read as it publicly reinforced many of what was previously discussed here and shows the progress that Kate has made in her capacity as managing director. I am very impressed by how she articulated the challenges, opportunities and etc.

The half-yearly report was good to read for a number of reasons.

(1) Alcidion has started to provide guidance which signals to me that they are getting more confident and have a better handle on the recurring side of the business. Forward guidance also provides some vital information for shareholders and analysts to work with.

As at 31 December 2018, Alcidion had a total of $14.8 million in contracted revenues which are expected to be realised in the current financial year. The Group therefore anticipates reporting revenue for H2 FY2019 of at least $7.5m, prior to winning any new contracts.

(2) First time on public record (at least) that Alcidion has put to rest any fears over capital raising to replenish cash reserves and/or fund R&D and ongoing working capital. This message has never been conveyed to the market publicly, only in private discussions. Again, this signals the company's confidence in the operating cash flows of the business (particularly the recurring component) moving forward, independent of any R&D rebates and etc.

In H2 FY2019, the Group expects to rebuild its cash reserves through positive operating cash flows as it continues to grow revenues while prudently managing ongoing investment and controlling operating costs. The Board therefore does not anticipate any requirement for additional capital.

(3) Not sure if it was intended to be, but I like the manner in which the release of the Veritas coverage report last Friday was coordinated somewhat with the release of the half-yearly today. All we need now is another contract win announcement to put a little bit more ummph under the shareprice and reinforced the coverage report and half-yearly report.

(4) Ongoing focus on international expansion into the UK to take advantage of Patientrack's existing foothold and capitalise on the newly released NHS long-term plan. Although this is not explicit in the ASX release, I believe this to be the underlying intention.

During the half the Group has invested to integrate the acquired businesses into the Group, further build the Group sales capability, introduce Alcidion’s products to the UK market and complete the Miya Precision product redevelopment.

I am pleased to report the businesses are all tracking well and leveraging the cross-selling opportunities across the larger customer base and wider geographical territories, which is contributing to a growing pipeline of sales opportunities.

(5) Reinforcing the message that shareholders should not miss the forest for the trees. Alcidion is positioning for the expected disruption in the healthcare industry and is looking to build a long-term sustainable business.

Alcidion continues to transition towards profitability whilst making strategically important investments that will help drive future profitable growth. Reported Net Loss After Tax in H1 FY2019 was $0.6 million, an improvement compared to the prior year half net loss of $1.1 million. During the half the Group has invested to integrate the acquired businesses into the Group, further build the Group sales capability, introduce Alcidion’s products to the UK market and complete the Miya Precision product redevelopment. These investments have impacted profitability for H1 FY2019 but are required to build a foundation for growth and improve group profitability in FY2020 and beyond.