Global Health Limited Announces December 2024 Quarterly Business Report & Appendix 4C

Global Health Quarterly Business Report December 2024

Global Health Limited Announces December 2024 Quarterly Business Report & Appendix 4C

Dec-24 Quarter Highlights

  • Customer Receipts up 22% from PCP to $3.025M for the Dec-24 Qtr.
  • Operating and investing cashflow up 355% from PCP to $382K for the Dec-24 Qtr.
  • December Half-Year (6 months to 31-Dec 2024):Operating & Investing Cashflow improves by 56% (up $683K) to ($539)

 

Global Health Limited (ASX: GLH) (“Global Health” or “the Group”) is pleased to release its Appendix 4C Cash Flow Report for the quarter ended 31 December 2024 (Q2 FY25), and the accompanying Quarterly Business Activity Report. The financial performance commentary for the Dec-24 Quarter is relative to the Previous Corresponding Period (PCP) being the Dec-23 Quarter.

From 1 July 2023 all R&D expenditure has been expensed. PCP comparisons have been adjusted with Capitalised R&D added back to operating expenses to ensure like-for-like comparisons. Financial estimates of revenue, expenses and profitability are subject to audit.

Financial Commentary

Despite challenging external conditions, our sales and marketing teams delivered sales to new customers and expansion of existing customer with receipts continuing to grow year on year.

Dec-24 Qtr. Receipts up 22% (+$543K) on PCP to $3.025M

Dec-24 Qtr. Receipts up 22% (+$543K) on PCP to $3.025M

The increase in revenue combined with the tight management of overhead expenses and R&D expenditure was reflected in a positive cashflow in the December quarter.

Dec-24 Operating Cashflow incl. R&D up 355% (+$532K) on PCP to $382K

Dec-24 Operating Cashflow incl. R&D up 355% (+$532K) on PCP to $382K

Based on unaudited management accounts, revenue increased by over 7% to approximately $4.4M for the 6 Months to 31-December 2024. This was achieved despite the closure of private hospitals and smaller community and primary care customers. Operating and investment cashflow continued to trend towards positive cashflow.

Half Year (6M to 31-Dec) Operating & Investing Cashflow improves by 56% (up $683K) to ($539)

HY (6M to 31-Dec) Operating & Investing Cashflow improves by 56% (up $683K) to ($539)

The Company raised $350K through the issue of convertible notes and repaid $107K of debt for a net financing cost over the 6 months to 31 December of $243K. The result was a small group cash outflow of ($524K) for the half-year to Dec 2024.

Half Year (6M to 31-Dec) Group Cashflow improves by 70% (up $589K) to ($254)

HY (6M to 31-Dec) Group Cashflow improves by 70% (up $589K) to ($254)

The closing cash balance as at 31-December 2024 was $1.812M

 

December 2024 Quarter Activity

The activity in the quarter was directed at Research and Development expenditure in future revenue, to support new market segments. The difficult economic conditions of private hospitals have been widely reported in the press and required a pivot in focus to the areas where demand was better, particularly in support of healthcare providers supporting people living with mental health issues and other non-communicable diseases (NCD).

There was significant investment in additional features for the Company’s MasterCare Plus SaaS platform to expand our reach beyond our traditional focus on hospitals and multi-disciplinary community health centres to more targeted segments across medical specialties and allied health disciplines. These will be progressively released to the market over the next 12 to 18 months.

Our HotHealth digital front door was also a focus enabling better automation of engagements between patients and their clinicians, delivering administrative workflow efficiencies and financial savings for our customers.

Given significant development work completed over the past two years, our expenditure in future revenue applications was reduced by 25% from $1.498M in the PCP to just over $1.121M for the 6 months to December 2024. This represents 23% of total expenses compared to 29% of total expenses in the PCP. As a percentage of revenue, the investment in future revenue was 26% compared with 37% of revenue in the PCP.

As revenue increases and products achieve market readiness, the on-going expenditure will trend lower, aiming to meet industry standard levels of between 15% and 20% of revenue.

Much effort was also directed at improving performance and turnaround times for customer enhancement requests and improvements. The decision was also made to increase the release frequency of the mature MasterCare client/server applications (EMR & PAS). This resulted in over 50% reduction in outstanding tickets by 31-December compared to 12 months prior.

These initiatives had a positive impact on client satisfaction, with account management conversations now focused on upgrades to the MasterCare Plus SaaS platforms and value-add modules.

Investments in digital marketing initiatives have generated a healthy pipeline of new logo and upgrade opportunities for 2025.

The increased public awareness of cybersecurity and privacy breaches has resulted in significantly increased obligations of software vendors to perform appropriate due diligence and restrictions. The Company successfully completed the annual ISO 270001 certification and penetration testing of all our applications. Additionally, a much more rigorous and formal Integration agreement will be executed with third parties that integrate with the Company’s portfolio.

 

Forward outlook & growth strategy

Global Health is well placed to generate better results in the 2HY 2025, with a growing pipeline of new clients and upgrades to existing clients.

The healthcare sector in Australia continues to face operating challenges:

  • Private hospitals continue to face significant cost pressures through wage demands from its workforce, increasing energy costs, and the high interest costs impacting those groups with debt.
  • Health insurance companies are at logger heads with private hospitals because reimbursements are not keeping pace with increased operating costs. The Commonwealth Government has rejected the initial Health Insurers premium increases, and this is expected to take until April/May 2025 to resolve.
  • Global Health is focused on improving operating efficiencies and productivity of its private hospital clients.
  • Mental Health and Community Healthcare continue to grow and are not impacted to the same extent as private hospital due to being funded by governments. We expect this sector to continue to grow and Global Health is well placed to benefit due to existing and new Saas platforms.

Artificial Intelligence (“AI”) will be the big changer for the healthcare industry going forward. There are many areas where AI can improve the productivity and efficiency of the delivery of healthcare services:

  • Reduction in bureaucracy – AI is already impacting management reporting and Global Health is developing our MasterCare “Data Lake” application which gathers data from the various silos in healthcare organisations and delivers management reports in a timely fashion. This allows for better insights and timely decision making to improve operations.
  • Tools like ChatGPT and Microsoft co-pilot is already improving record keeping and reporting of consultations by doctors and healthcare professionals.
  • AI can be used to manage the use of energy more efficiently, which is a significant cost for healthcare operations.

Global Health is working to ensure that all its platforms incorporate AI wherever appropriate, considering the ethical considerations for clients, to progressively use the benefits of AI in their operations.

Many existing hospital and healthcare facilities and operating configurations are no longer fit for purpose and need to be replaced to meet the new environment we face.

Paper based systems are too cumbersome, labour intensive and costly. The immediate issues that the healthcare sector in Australia face, are the need to take advantage of digital technologies and AI, to reshape their operations, and help ensure survival in an increasingly difficult operating environment. Adoption of technology is now being recognised as the catalyst to significantly improve bottom line results.

Global Health is working with existing and future clients to help achieve this.

 

Required disclosures in accordance with Listing Rule 4.7C

In accordance with Listing Rule 4.7C.1, the operating expenditures of Global Health for the quarter ended 31 December 2024 are set out in the table below:

Expense Category Amount ($A’000)
Product manufacturing and operating costs 971
Advertising and marketing 37
Leased assets 33
Staff costs 1,437
Administration and corporate costs 132

In accordance with Listing Rule 4.7C.3, payments to related parties and their associates during the quarter totaled $113K This related to directors’ remuneration.


This ASX announcement has been authorised by the Board of Global Health Limited (ASX:GLH).

For the full announcement including the Appendix 4C, please visit the ASX website here.

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