REG - Induction Healthcare - NHS England contract renewals secure £6.6m ARR

Induction HealthcareAnnouncement

11/04/2022 07:00

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RNS Number : 8747H  Induction Healthcare Group PLC   11 April 2022

Induction Healthcare Group PLC

("Induction", the "Company", or the "Group")

 

NHS England contract renewals secure £6.6m annual recurring revenues for
Induction Attend Anywhere

 

Retention rate significantly above management expectations

Majority have moved into multi-year contracts

 

Induction (AIM: INHC), a leading digital health platform driving
transformation of healthcare systems worldwide, announces that following the
recent contract renewal process across NHS England for remote consultation
services in secondary care, Induction Attend Anywhere ("AA") contracts have
been successfully extended or renewed across 94% of existing contracts. This
is significantly above management expectations and takes effect from 1 April
2022.

 

£6.6m of annual recurring revenue will be recognised in FY23 as a result of
the above contract renewals. In addition, whereas previously all contracts
were for a one-year term, the new contracts have terms ranging between 1 year
and 3 years, with the majority committing to at least 2 years. This results in
an aggregate contract value of £10.9m.

 

Background to the AA contract renewals

Induction Attend Anywhere (https://inductionhealthcare.com/attend-anywhere
(https://inductionhealthcare.com/attend-anywhere) ) is a purpose-built suite
of services, tools, and resources that have introduced video consultations
into everyday practice across NHS Health services in England, Scotland and
Wales. It offers patients the option to attend a healthcare appointment via
video, in a way that benefits the patients, healthcare professionals and the
healthcare system.

 

In early 2020, NHS England centrally contracted with Attend Anywhere,
following a successful national roll-out of AA in Scotland and regional pilots
in England, to offer patients and providers the option of remote consultations
in secondary care. A few months later the Covid-19 pandemic emerged. The
roll-out of Attend Anywhere under lockdown conditions was one of the fastest
of a single technology in NHS history.

 

This centralised NHS England contract expired in March 2021, devolving as
planned into a series of competitive regional tenders. Central funding was
made available to enable NHS Trusts to license a platform of their choice, to
31 March 2022.

 

The NHS contract renewals announced today, undertaken in a highly competitive
situation, deliver a 94% retention rate - the Directors believe that this
represents a significant endorsement of the Induction Attend Anywhere
solution, and clear justification for the claim to be the UK's market leading
video consultation service used in secondary care.

 

AA is now the embedded system of choice for NHS video consultation across the
British Isles. Outpatient appointments across NHS England delivered via video
using the Induction Attend Anywhere platform, saved 4.64 million hours in
patient travel and wait times and £40 million in patient travel costs and
parking charges over the course of a year (March 2020 - March 2021)*.

 

James Balmain, Chief Executive Officer of Induction, commented: "We are
absolutely delighted by such a significant endorsement of the Induction Attend
Anywhere video consultation solution.

 

"When we acquired Attend Anywhere in June 2021, we knew that the change to
regional procurement might present more of a challenge than national and were
aware of the clear competitive pressure from global video conferencing
providers, who've become household names during the pandemic. It is a
testament to the strength and quality of our offering, and to the speed of
business integration, that we were in a position to open negotiations within
months of the acquisition and complete this complex process within deadline.

 

"The conversion rate for these renewals, and the fact that the majority have
opted for multi-year contracts, shows that our purpose-built technology has
not only become a trusted, long-term solution for secondary care in the UK,
but one of the most widely used technologies to be rolled out as part of the
digital transformation of the NHS. This not only reinforces the significance
of the acquisition but also the intrinsic value that Attend Anywhere brings to
the Group as part of an integrated and all-encompassing digital health
platform.

 

"We look forward to providing an update on the financial year just ended in
late April."

 

 

ENQUIRIES

 

 Induction                                              Via Walbrook PR Ltd: induction@walbrookpr.com

 James Balmain, Chief Executive Officer

 Guy Mitchell, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)  +44 (0)20 7496 3000
 Philip Davies / Kailey Aliyar

 Walbrook PR Ltd                                        induction@walbrookpr.com
 Paul McManus / Alice Woodings                          Mob: +44(0)7980 541 893 / +44 (0)7407 804 654

 

About Induction -  www.inductionhealthcare.com
(http://www.inductionhealthcare.com)

Induction (AIM: INHC) Induction delivers a suite of software solutions through
a single integrated platform that transforms care delivery. Our system-wide
applications help healthcare providers and administrators to deliver care at
any stage remotely as well as face-to-face - enabling a more flexible,
efficient and positive experience for the communities they serve. Purpose
built for integration with leading Electronic Medical Record (EMR) platforms,
our products offer immediate stand-alone value that becomes even greater when
integrated with pre-existing systems.

 

Used at scale by national and regional healthcare systems, as well non-health
government services, our applications are relied upon by hundreds of thousands
of clinicians and millions of patients across almost every hospital in the
British Isles.

 

*For information on the independently recognised benefits of video
consultations in secondary care please refer to Edge Health report September
2021: https://www.edgehealth.co.uk/outpatient-video
(https://www.edgehealth.co.uk/outpatient-video)

 

 

 

 

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