24 Apr Global Health Releases Quarterly Business Activity Report
Result highlights include:
- Year To Date (YTD) Revenue to March up 12% on the Previous Corresponding Period (PCP)
- Operating Cashflow improves by 69% from the PCP
- Group Cashflow improves by 61% from the PCP
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 March 2024 (Q3 FY24), and the accompanying Quarterly Business Activity Report.
The financial performance commentary for the March-24 Quarter is relative to the Previous Corresponding Period (PCP) being the March-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 Commentary
Operating Cashflow improves by 61% on PCP
The Company continued to improve our cashflow deficit with the operating cashflow deficit reducing by 61% ($658K) from the March-23 quarter to ($203K) in the March-24 quarter.
This represents a 61% ($455K) improvement in operating cashflow while maintaining our R&D investments at the same level and increasing our investment in customer facing roles.
Group Cashflow improves by 69% to ($270K) from the PCP
The reduction in operating cashflow flowed through to the overall group cashflow with a 69% ($455K) reduction from the March-23 quarter to ($270K) in the March-24 quarter.
March-24 Quarter Activity
A major focus this quarter was consolidating multiple versions of the Company’s EMR deployed to customers with a single version that will enable quicker implementation of new features into one version rather than multiple versions. Performance improvements were also a focus across all platforms to ensure enhanced experience across our users.
Upgrades to the Company’s Enterprise Application Integration broker are underway to enhance FHiR-based interoperability with external systems, and out-of-the-box support for a wider range of industry standard HL7 messages.
New features were added to our digital front door or HotHealth Patient Engagement platform with integration to the Company’s provider platforms to deliver improved workflow for our Primary Clinic and MasterCare Plus customers. Integration to our PAS will be completed in the June Quarter with integration to our EMR scheduled to follow.
Customer projects and progress with the SaaS composable provider platform development was delayed this quarter as resources were directed to the transition of our electronic prescribing functionality from the MediSecure Prescription Delivery Services (PDS) to Fred IT’s PDS.
This was an unfunded, government mandated change following the decision of the Department of Health and Aging to move to a single Prescription Delivery Service operated by Fred IT. Compliance for the nominated PDS was achieved in March across our 3 prescribing platforms.
This impacted customer funded delivery milestones as well as completion of our SaaS re-platforming however despite the unplanned, unfunded activity, YTD revenue for the 9 months to March-24 was pleasingly up 12% on the PCP.
Forward outlook & growth strategy
Healthcare in Australia is largely funded by governments. The pressures on government finances have resulted in funding and financing pressures on the healthcare industry. Healthcare providers in Australia are experiencing significant increases in labour, energy and funding costs, increasingly looking to adopt technology to streamline their workflows, and reduce costs to improve productivity and efficiencies.
The Company’s SaaS portfolio provides exceptional value with seamless integration between our MasterCare Plus SaaS platform, our HotHealth digital front door platform, our ReferralNet secure messaging platform and our Lifecard Personal Health Record. The focus post-June will be on generating new revenue, largely from the deployment of our SaaS portfolio.
The focus on controlling our costs remains fundamental to our operations with the goal of achieving positive cashflow and profitable operations in the new financial year.
This ASX announcement has been authorised by the Board of Global Health Limited (ASX:GLH)
For further information, please visit the ASX website here