Adelaide, South Australia – Alcidion Group Limited (ASX:ALC) today announced FY18 pro forma unaudited results which have been adjusted to include the full-year contribution of the MKM Health and Patientrack businesses.
The MKM Health and Patientrack acquisition completed on 3 July 2018 (FY19). The FY18 pro forma unaudited results include the FY18 results of the MKM Health and Patientrack businesses, as though they were owned by Alcidion Group for the whole of FY18 (1 July 2017 to 30 June 2018).
MKM Health is a leading provider of IT solutions to healthcare providers across Australia and New Zealand, and UK-based Patientrack is a world-leading supplier of healthcare software targeted at improving patient safety.
On a FY18 pro forma basis the combined group delivered revenue of $12.7 million. This is slightly below the previously advised pro forma FY17 revenue of ~$13 million due to two factors:
- The pro forma FY17 revenue included $1.5 million in MKM Health / Patientrack upfront licence fees, which would have been recognised in FY18 revenue had Alcidion’s accounting policies been applied to MKM Health / Patientrack results in FY17.
- FY18 revenue includes downward adjustments that were made to MKM Health and Patientrack results to align with Alcidion’s accounting policies and standards based on new revenue recognition rules, for example the deferral of >$600,000 revenue invoiced by MKM Health late in FY18.
The new revenue recognition rules together with the growing acceptance of subscription licensing within the health sector, will lead to more revenue being recognised over the life of contracts as opposed to upfront.
The combined group delivered a pro forma FY18 net loss of $1.6 million. The net loss of $1.6 million included one-off M&A costs of approximately $1.0 million, associated with the acquisition, and $675,000 in one-off additional expenses that were required to align MKM Health / Patientrack reported results with Alcidion Group accounting policies.
For further information, please contact:
Kyahn Williamson, WE Buchan