In This Article:
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Revenue: 5.4 million for the first half of FY25, down from 6.1 million in the same period last year.
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Gross Margin: 78.2% in the first half, up from 75% in the previous year.
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Net Cash: 3.1 million at the end of the period.
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Projected Revenue: Expected to achieve 12 million in FY25 and 15 million in FY26.
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Zy Revenue Growth: 51% increase in the first half of the year.
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Cloud Hosting Cost Savings: Reduced by 70%, resulting in 2 million of annualized savings.
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Market Share: Retained 64% market share in England for video consultations.
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New Contract: 1.5 million contract to digitize diagnostic referrals in North Central London.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Induction Healthcare Group PLC (LSE:INHC) has achieved a 30% reduction in missed appointments (DNAs) among its customer base, with some cases seeing up to a 50% reduction.
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The company has seen significant cost savings, including a 70% reduction in cloud hosting costs, resulting in approximately 2 million in annualized savings.
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Induction Healthcare Group PLC has a strong integration with NHS systems, including Oracle Cerner and the NHS app, enhancing its service offerings.
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The company has secured a 1.5 million contract to digitize diagnostic referrals in North Central London, showcasing its growth potential and strategic direction.
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The Zy portal business has shown strong growth, with a 51% increase in revenue in the first half of the year compared to the previous year.
Negative Points
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Revenue for the first half of FY25 was down to 5.4 million from 6.1 million in the same period last year, partly due to paused contracts following an early election call.
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The company has experienced a decline in video consultations by 70% since the pandemic, impacting revenue from its Attend Anywhere platform.
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Induction Healthcare Group PLC's share price has seen a decline over the past few years, attributed to low liquidity and small retail trades.
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The transition from centrally funded contracts to individual hospital budgets for video services has led to revenue churn.
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The company anticipates some revenue churn in NHS Wales as contracts transition from centrally funded to utilization-based models.
Q & A Highlights
Q: How are you thinking about AI and how it fits into your product strategy? A: We are considering using AI tools internally and are looking at partnering with existing AI capabilities rather than building our own. We are exploring the use of large language models to create clinical letters from video consultations, which could save administrative time. We are also working on a proof of concept to integrate these transcriptions into clinical codings within electronic medical records, enhancing efficiency without becoming a medical device.