REG - Induction Healthcare - Trading Update for year ending 31 March 2023

Induction HealthcareAnnouncement

18/04/2023 07:00

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RNS Number : 5014W  Induction Healthcare Group PLC   18 April 2023

Induction Healthcare Group PLC

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

 

Trading Update for year ending 31 March 2023

& Directorate change

 

Induction (AIM: INHC), a leading digital health platform driving
transformation of healthcare systems, provides an update on trading and other
changes following the year ending 31 March 2023 (FY23).

 

Consistent with our statements earlier in 2023 we are pleased to report
progress in our commitment to self-sustaining growth and cash breakeven in
2024. We remain on track to hit both objectives. We have completed our
rightsizing plan for the business, the costs of which have been fully provided
for in FY23. We continue to tightly manage our cost base which, as at 31 March
2023, was reduced by over 30% on a monthly basis from the level at the
beginning of 2023. The business is better positioned to meet the next phase of
growth.

 

Revenues from contracts with customers for the full year to 31 March 2023 are
expected to be £13.6m, up 11.8% on our prior year pro-forma full year
revenues1. FY23 is the first year the Group has benefited from a full year of
revenues from its Attend Anywhere acquisition (2022 £7.9m2).

 

Revenues from Induction Attend Anywhere have grown by 9.4% from £9.8m1 to
£10.8m.

 

Revenues from Induction Zesty have grown by 86.9% from £1.1m to £2.1m as we
benefit from the alignment of our joint product offering and the increase in
take-up of digital appointments in the NHS.

 

Net cash in the business was £4.2m (2022: £7.5m). Recent highlights include:

 

·   NHS Scotland renewed Induction Attend Anywhere in February 2023 for
three years at £1.96m p.a. until FY26.

·   NHS Wales renewed Induction Attend Anywhere in March 2023 at £1.6m for
FY24.

·   Induction Attend Anywhere annual renewals totaling £1.6m in March 2023
were signed across targeted NHS England trusts, firmly positioning Induction
for upcoming renewals in FY24.

·   Induction Zesty contracted with three further hospitals in England,
building on the previously announced contract wins with twelve England-based
hospitals.

 

Directorate Change: Hugo Stephenson will resign from his position as
non-executive Board Director at the completion of his current term on 5 May
2023.

 

Induction Chair, Christopher Samler, said: "We are pleased with the progress
we have made towards our objective of self-sustaining growth and cash flow
breakeven in 2024. It has been a challenging time during which we have reduced
our cost base to reflect a self-sustaining and focused business. As a result,
Induction Healthcare is now in far better shape to provide our customers with
the advanced products they need and to position ourselves for the next phase
of growth."

 

1 £12.1m total pro-forma revenue arising on the combined business upon
acquisition including £9.8m of Attend Anywhere revenue. 2A non-cash
elimination of IFRS3 affected revenue for the FY22 period of reporting
resulted in Group revenues being adjusted under IFRS3 by £4.2m from £12.1m
to the reported figure of £7.9m.

 

Enquiries

 

 Induction

 Christopher Samler, Executive Chair                    +44 (0)7712 194092

 Paul Tambeau, Chief Operating Officer                  +44 (0)7983 104443

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

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 - giving the communities they serve
greater flexibility, control and ease of access. 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.

 

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