24 Apr Global Health Limited Announces March 2025 Quarterly Business Activity Report & Appendix 4C
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 2025 (Q3 FY25), and the accompanying Quarterly Business Activity Report. The financial performance commentary for the Mar-25 quarter is relative to the Previous Corresponding Period (PCP) being the Mar-23 quarter.
Financial estimates of revenue, expenses and profitability are subject to audit.
Financial Commentary
Closing Cash $299K below PCP
The March quarter saw the end of a 32-year license contract with SA Health using the Company’s Chiron PAS. This resulted in a $750K loss of income to the Company and a corresponding decline of approximately $750K in operating receipts over the March quarter compared to the PCP.
YTD sales won to the end of March have exceeded the total new sales for the previous year. The forecast is that new sales will more that cover the loss of income from SA Health over the forward 12 months.
The company continues to control costs. With the projects won, we have increased expenses for implementation and project management resources. As we transition to a fully SaaS business our legacy products are being replaced. This will allow the company to reduce costs and increase margins. The closing cash balance as at 31-March 2025 was $832K with collections from renewals forecast to increase in the June-25 quarter in accordance with our seasonality patterns.
Mar-25 Quarter Activity
Research and Development investments in future revenue to support new market segments, continued through the March quarter, with clinical, administrative, billing and program funding features progressively implemented in our MasterCare Plus (M+) SaaS platform for healthcare service providers.
In the March-25 quarter, the Company secured orders to implement MasterCare Plus for 15+ healthcare services with a healthy demand for upgrades from our existing client/server EMR and PAS customers expected to accelerate over the forward 12 months.
M+ features now support Allied Health and Specialist providers with customer acquisition campaigns targeting these segments planned from June-25.
The Company’s HotHealth Digital Front Door supporting smart forms and encouraging digital engagement between clinicians and consumers is a compelling solution with HotHealth and ReferralNet rolling out to an initial14 indigenous communities within Murdoch University’s “Baby Coming You Ready?” Initiative as well as being a sought-after value-add from existing MasterCare customers.
The Company’s ReferralNet Secure Messaging platform is in multiple state panels for Secure Message Delivery (SMD) with customer acquisition initiatives scheduled from mid-May.
Our Lifecard Personal Health Record for consumer empowerment and active engagement with their care team is undergoing an update to reflect current best-practice trends in architecture, technology, and UI/UX (User Interface and User Experience).
Our investments in future revenue applications (R&D) reduced by 10% from the PCP to $542K in the Mar-25 quarter. For the 9 months to March 2025, there was a 20% reduction compared to the YTD investment over the 9 months to 31 March 2024 ($1.671M vs $2.102M).
As revenue increases and products achieve market readiness, the on-going R&D investments will trend lower to industry standard levels of between 15% and 20% of revenue.
Forward outlook & growth strategy
The Australian Healthcare Sector remains difficult.
- The Public Healthcare Sector, funded by State Governments, have been subject increased funding constraints due to the deficits of State Governments. This is expected to continue for the foreseeable future. Public Healthcare is seeing increased demand for its services due to the increase of over 1m migrants. Also, increased operating costs, especially labour and energy costs continue to put pressure on their funding. NSW Health has seen a walk out of Psychiatrists, a 30% wage increase demand by medical/surgical doctors and further wage demands by other healthcare workers.
- The Private Healthcare Sector finds private hospitals under extreme financial pressure with the second largest private hospital operator, Healthscope, effectively facing insolvency. All hospitals are facing funding from private health insurers failing to keep up with increased costs of labour, energy and funding interest costs. Private hospitals are beginning to see increases in occupancy to pre-covid levels, however it remains to be seen whether the increased occupancy trend continues.
Global Health community-based platforms, especially mental health, continues to be the growth sector for the company, the execution of contracts is slower than pre-covid. The company is well advanced in completing negotiations before the end of the current financial year.
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.