...six. Joining me on the call today is our Chief Financial Officer, Matt Gepp, and Nick White is also joining us, our Chief Marketing Officer, and he's going to assist in managing the Q&A.

Before we get into the detail, I would like to acknowledge the Traditional Owners on the land from which I'm presenting today, the Wurundjeri people of the Kulin Nation, and also to acknowledge the lands from which all of you are joining me today, and I pay my respects to their Elders past and present, and I also extend that respect to all Aboriginal and Torres Strait Islander people who are joining us on the call today. Shortly, I'll take you through a presentation as we normally do, covering the key financial and commercial highlights for the quarter.

Just to remind you, all attendees will have the opportunity to ask questions at the conclusion of the presentation. If you would like to ask a question, could you please use the Q&A function that should be at the bottom of your screen, and we'll aim to answer as many as possible.

Any questions that are similar in nature we may combine to avoid repetition, and if we run out of time or we're unable to answer any of the questions, please send it through to [email protected], and we'll seek to answer as many as possible. Just as a reminder, the webcast is being recorded today, and it'll be available on Alcidion's website later today.

Kicking straight off, Q4 was a very strong period for Alcidion. It closes out what's been a record year for the business across several key financial and operational measures as well.

I'll cover the financials in more detail obviously as we go through the presentation, but at a high level, we delivered record positive operating cash flow of $7.7 million, leading us to a full-year positive operating cash flow of $6.8 million. This is up 19% on last year, beating our FY26 guidance, and highlights really the strength of the Alcidion business model as we continue to sign long-term contracts that underpin the growth and profitability of the business, not just for this year, but for years to come, given the long-term nature of those contracts.

Just to illustrate a couple of those, in May, we signed a milestone contract with University Hospitals Sussex for the Miya Precision platform. That's going to be deployed as their new comprehensive electronic patient records solution.

UH or University Hospitals Sussex will be our third UK EPR deployment and our largest trust yet to deploy Miya Precision for full EPR capabilities. It gives us that clear point of referenceability as we remain engaged over several other newer EPR procurement opportunities that are also going through the pipeline.

We also extended our relationship with Western Health in Victoria, which I'm particularly proud of. It marks our fifth contract extension across 20 years that Alcidion has had with Western Health.

Miya has been running at Western Health for, as I said, a number of years. It's a great example of the embedded nature of our platform and the critical role it plays in the day-to-day support of administrative and clinical staff at that site and others.

On the 29th of June, we completed the acquisition of the Careflow product suite from Telstra Health, which is a highly strategic transaction for us. It brings 33 customers, 31 of whom are new customers to Alcidion, establishes Alcidion with a strong presence in Queensland, and further to that, the transaction was immediately earnings accretive for our shareholders.

We've confirmed our guidance for FY26 with revenue of $51.6 million subject to audit, and that's a 27% increase on the prior year, with the EBITDA being in excess of $5 million, and we will update that at the full-year results later in August. If we want to just maybe dig into the financial highlights in a little bit more detail, during the quarter, we delivered new sales and renewals with a combined contract value of $43.2 million, which was primarily driven by the UHS, UH Sussex and Western Health.

Approximately 89% of the new sales relate to recurring product revenue, and the remainder being for product implementation services for implementing our products. We've finished the full-year FY26 with new TCV sales of $78.5 million, which is a record for the business, and continued demonstration of validation of our product offering and the go-to-market strategy that we're deploying.

The fourth-quarter cash receipts from customers were $24.6 million, and that helped to drive a positive operating cash flow for the quarter of $7.7 million. Included in the cash receipts for the quarter was a $10.6 million payment from University Hospitals Sussex, which represents the upfront capital component of the total deal for the 7 years.

There is obviously additional recurring revenue related to that, which I'll touch on later. The product development and operating costs were $4.1 million for the quarter, and as we spoke about in prior quarters, this cost line is higher than last year, and that's mainly because it reflects the payment to third-party providers in this instance, predominantly Better, for the medications management component of the University Hospitals Sussex contract, where we are serving as the prime contractor, but in this instance providing them with the third-party medications management partner solution we use from Better.

For those that have not been on prior webinars, just to clarify that we are absolutely focused on sales of our own product suite, and it will continue to be the primary driver of growth moving forward. This year has been a little different to others in that we have had a higher component of third-party revenue comparatives to prior years in comparative to Miya Precision.

We don't expect that will be how it continues, but one of the strengths of Alcidion is that we have a platform approach, and that platform provides for the ability for specialist applications like Better medications management to be seamlessly incorporated into the workflow. It's actually a real differentiator of Alcidion to other providers of electronic patient records in the market, and it really works for our customers in that it allows them to keep investments that they potentially had already made.

In the instance of North Cumbria, for example, they had already chosen to deploy Better medications management. We're seeing a similar thing in Hywel Dda in Wales and a number of other Welsh sites that have already gone forward with medications management ahead of choosing an EPR provider.

The staff cash costs remained well controlled, with cash staff costs up approximately 5.5% on the same period last year. Similar to what we did last year, within this quarter, Q4, we have paid in advance half of the one-off FY26 short-term incentive bonuses that will be due and achieved as a result of results.

The balance of those STI payments will be made in Q1 of FY27. Underpinning the Q4 cash flows, or aligned to that, Alcidion delivered full-year positive operating cash flow of $6.8 million, which is an improvement of $1 million on last year, or 18%, and it represents an accurate reflection of our operating cash flows because we do not capitalize any of our R&D.

As of the 30th of June, Alcidion had $20.6 million of cash in the bank with no debt, and it is important to note that that's after we've paid the net completion payment, which ended up being around $1.5 million for the Careflow products business after we had made adjustments. This slide we like to present consistently quarter-on-quarter.

I've covered a lot of the information already. On the left-hand side, you'll see quarterly new sales, the $43.2 million we delivered in Q4 was our second highest ever, and shows in back-to-back years we've now delivered new sales and renewals of around $70 million plus.

On the right-hand side, this again highlights the seasonality in our cash receipts, and the material uplift we typically see in the final quarter of the year. Pleasingly, we've been able to deliver an uplift in Q4 cash receipts in each of the past 4 years, very consistent in terms of that delivery.

As I mentioned in the summary at the beginning of the presentation, one of the major announcements this quarter was the signing of our third electronic patient record contract in the UK with University Hospitals Sussex. It is a milestone contract, the minimum contract value expected to be $35 million over an initial 7-year period.

Built into that contract are options to extend out to 10 years, which would increase the TCV to over $45 million, but also additional module expansion is possible throughout the course of the contract, and that includes PAS and ED as potential add-ons. Post the signing and as expected, we received an upfront payment of $10.6 million inclusive of VAT for the capitalized license component of the contract, and a portion of that payment does relate to our third-party partner products, which has also been paid in this quarter.

Despite the fact that there's an upfront contract component to the contract, which contributes obviously to cash in this quarter, this contract actually contributes $3.5 million in annually recurring revenue in each of the 7 years, and it will actually be our second largest ARR customer behind Leidos. The selection of Alcidion and Miya Precision for UHS Sussex EPR followed a competitive tender process, and it sees us expand our longstanding relationship we had with Sussex, where our observation and assessments module, or previously known to some as Patientrack, has been deployed for a number of years.

We have commenced deployment of the wider EPR, and given the scale of the project, similar to other EPR projects, we'd expect that to run for around 18 months. During the quarter, we also signed a 4-year plus 1 potential extension for Miya Precision Access, Flow, and Command modules with Western Health.

They are one of Victoria's largest public health networks and have just moved into a new facility where Miya Flow facilitated that move of patients, and it was excellent to see them demonstrate how they used Miya Precision at a recent Alcidion customer event that we held earlier this year. As I mentioned at the outset, it is the fifth contract renewal in the past 20 years that we've had with Western Health, and it's really exciting in that when they started their journey with us, they did not have an electronic patient record, and as part of the Victorian deployment of the Oracle Cerner solution during that period, Western have actually implemented electronic patient records, but Miya Precision has remained in place across all of those changes.

That serves as a prime example of just how embedded our software becomes and how it helps lead to these longstanding customer relationships that we have, and the reason that those customer relationships are of such longstanding is the ability of our solutions to solve some of these very complex customer challenges. I also wanted to update you on a major implementation milestone for us, and of course for our customer.

Often we talk about the new wins, but I think it's really important to recognize that the strength of a company like Alcidion lies in our ability to seamlessly implement our solutions and our partner solutions in an efficient and effective manner, and we recently demonstrated that at North Cumbria by the Phase 1 go-live of the Miya Precision EPR solution. It has been recognized widely as a very successful implementation, including by NHS England.

It was implemented very smoothly without incident, completing a major milestone for the Trust, and we look forward to continuing to roll out further phases of that deployment. This referenceability is a very, very important part of Alcidion's go-to-market, and also a very important asset of Alcidion as a company.

As shareholders would have seen, we also put out a non-deal roadshow presentation as part of some of the recent travels I did through Singapore and Hong Kong. It was focused on two components.

One was around looking at sharing the story of Alcidion with potential new investors in those markets, but we also attended the Smart Health Asia conference to look at Southeast Asia as a potential geographical expansion area. Shareholders will know we have had some focus on this, and I will update in more detail at the full-year results how we're progressing across all geographical expansion.

In Singapore in general and some of the countries in the Asian region, they operate a similar single-payer model to Australia and the UK, with government funding a lot of the hospital care. Interestingly, you see a stronger play from the private providers in some of these markets where a lot of the private providers are actually quaternary hospitals, providing the full range of specialist care.

They are very significant organizations in themselves. It's very early days in terms of our looking at this as a market for patient flow, but we certainly feel very strongly that the challenges that we see in the regions that we currently operate in equally exist in that part of the world.

A little bit more just for those who have not been across the acquisition of the Careflow products, it was a highly strategic acquisition for Alcidion. We closed this on the 29th of June.

We are actively working with customers transitioning them over to Alcidion environment and Alcidion support, totally complementary to our core business. From a customer's perspective, we are known to bring deep industry and specialist product knowledge in flow, and we have the infrastructure in place to ensure a seamless customer transition.

Putting it simply, we're not stepping outside what we do, we're deepening our exposure to it in relation to this acquisition. It consolidates our leadership in the patient flow market across the ANZ region, particularly in that it adds meaningful scale in Queensland, and that's a market where we've historically been underrepresented in terms of our position of flow.

As I said at the outset, 31 new customers, including a mix of public and private in that, across most states of Australia, and with the average top 10 customer relationship being about 10 years. It's immediately earnings accretive.

If you look at the FY26 forecast EBITDA of $1.1 million for that business, we acquired the business for an upfront EBITDA multiple of 2.7 or times 2.7. In our investing cash flows in the Appendix 4C, shareholders will note that the net completion payment was $1.5 million for the acquisition, and the payment reflects the upfront consideration of $3 million less completion adjustments for a cash-free, debt-free transaction.

Overall, this was a very positive result. Over time, we really definitely see an opportunity to create future opportunities for Miya Precision with the Careflow customers, and I think that's an excellent increase to the potential pipeline for FY27 and beyond.

If we look ahead at the outlook, given that we're now in July, we've got a high degree of confidence obviously in our FY26 financial guidance. Therefore, we've given you the indication of where we expect revenue to land for the year at $51.6 million.

Of course that's subject to audit, but we're confident it'll be in or around that number, and continuing to commit obviously to the EBITDA being in excess of $5 million, and we will confirm that at the full-year results. We enter FY27 with really strong momentum across all our existing markets, and we're continuing to progress several opportunities.

Important to note, we also have a very significant book of implementation revenue that carries over from FY26 sales, and that's particularly associated with the deployments of the critical care component for Leidos, North Cumbria, and of course University Hospitals Sussex. As I said, we'll give a full update on results at FY26 full-year results later in August, including what the contracted revenue is when we start FY27.

Before I hand over to questions, I thought I'd just touch briefly on our role and how we see the AI landscape as it relates to Alcidion, because it's obviously a question I get a lot of lately and a lot of people are talking about it, and there's two elements to that obviously. There's how we're using AI in our own business, and there is how we're using AI and deploying AI through Miya Precision.

We're actively using it in our own business, and I think I've got a question later on that I'll unpack that a little bit more. Really important, at its core, Miya Precision is a horizontally integrated system of record.

We ingest raw data from multiple input sources and store, analyze, standardize that data, and that provides an opportunity to deploy AI on a very highly regulated, but standardized set of data. This is one of the challenges that healthcare is seeing at the moment with the deployment of AI is it is a quite rightly risk-averse environment.

It is an environment in which one has to be particularly careful about the use of AI, and of course we're still evolving, I think, in terms of what the regulatory environment about the deployment of AI in healthcare will be. We are firmly of the view that the evolution of AI in healthcare will need platforms such as Miya Precision to act as the AI gateway so that these niche or particular AI algorithms can actually be deployed safely into a workflow where clinicians are not expected to go in and out of systems, which we know they firmly are resistant to doing.

We are excited with the way in which Alcidion is positioned to support the deployment of AI into healthcare. Thank you very much for your time today, and I'm happy at this point to take questions.

I'll stop sharing.

Thanks, Kate. All right, I'll jump into the first question we've got here.

It's a question regarding the Canadian Armed Forces' electronic health record platform procurement, noticing that Alcidion has been shortlisted amongst the qualified providers. Can you shed any light on what makes Alcidion stand out from other qualified SaaS providers, when decisions regarding contract awards are expected to be announced, and anything the company is able to share about the opportunity?

Thank you very much. As you can probably appreciate, any tender engagement with armed forces from any country has to be managed in a confidential manner, there's not a great deal I can share about this.

I do believe it is public knowledge that we have been shortlisted for this opportunity along with 4 other vendors. The process is expected to take a number of years, and it already has been going for, I don't know, Nick's actually leading this, but perhaps 12, 18 months.

We would not expect any outcomes from the next phase, which is a more formal tender, until earliest FY28.

Thanks, Kate. Next question, an update about NALHN, and prospects for expansion in South Australia would be appreciated?

Thank you. NALHN project has been extremely successful, and we are working with them on their Phase 2 optimization program.

There's been a number of visits to NALHN from other local health networks in South Australia. Flinders University has been engaged by NALHN through the Digital Health CRC, and they are close to completing a study similar to what we did at The Alfred, and we very much look forward to sharing those results with you when published, which I believe won't be too far away.

We expect that to be closely watched by other local health networks in South Australia.

Next question, you referred to the fact that we had an AI question, the next one is an AI question, which is what do you see as the role of AI in the business going forward? Is AI a threat to the business, or is it an opportunity to improve productivity?

I know you've tackled some of this, but is there anything else? Yeah.

I talked a little bit about the opportunity for us. Absolutely, we see AI as a distinct opportunity.

We are actively using it across all parts of our business. We started with a focus on engineering and product development, which has proven that it can deliver greater velocity and quality in our product outcomes.

Like many businesses, we use tools to speed up searching and production of documents and preparation of things, and I doubt there'd probably be any member of the Alcidion team who wasn't using AI in some manner. The biggest impact I think we've seen has been in the speed and quality of product production, and I expect that's only going to get better as models improve.

We certainly don't see it as a threat. From a Miya Precision perspective, we think that we are incredibly well placed to position ourselves as the gateway for the deployment of AI safely into healthcare.

Thanks. Next question is when do you think Alcidion will no longer be required to report on a quarterly basis?

Look, I'm not sure this is a hard-and-fast rule, but I believe the standard expectation is 8 consecutive positive cash flow quarters. Now, I'm not sure that's actually a rule, but it's sort of the benchmark.

Let's see how the next few quarters go, and then no doubt Matt will be making a case to the appropriate people as to whether we will be relieved of needing to do that.

Thanks. The next one is around UHSx, and I think just some clarity, Matt, you may want to jump in here around the revenue, but just clarifying in terms of the revenue booked for the quarter, and how that is being recognized, I think it is, and if you could just discuss that in a little more detail, Matt.

The question is around the cash receipt from UHSx of just over $10 million. Look, it's a good observation, and what you need to remember when we're doing an Appendix 4C is all the cash flows, the cash receipts and the cash flows we talk about are include the VAT in the UK, which is 20%.

The $10 million is not all revenue, 20% of that goes to HMRC, and so that brings it down to about $8.5, $8.6, I think, and 100% of that wasn't booked in the year. That's the reason those numbers don't tie up, because we're mixing the VAT-inclusive numbers with the revenue.

Great. Thanks, Matt.

Kate, I think this one's back to you. Change in UK government leadership, early days, comments or implications for Alcidion?

Look, I don't really. I haven't seen any indication from what's come out yet, and that is early days, that they're going to change their course of direction in relation to digital being a very important part, or analogue to digital as they refer to it.

Also no indication yet that the 10-year plan's going to their commitment to the 10-year plan's going to change in any way. I expect it will continue.

We are still waiting to hear the details of how the Frontline Productivity Program funding is going to be accessed. When I say we, I mean the trusts, as far as I know, have still not been fully informed of that.

I know they work on business cases. I I I expect that as we see investment in in digital in the coming years out of the UK, it will be a mixture of trusts funding their own deployments, such we've as we've seen with University Hospitals Sussex, as well as people accessing funds like frontline frontline productivity.

No indication at the moment other than, we're still waiting to find out, what that those funds and how they're going to be accessed fully.

I'm going to jump forward to a related question, just while we're on the topic, and can you please give your thoughts, an update on traction across new EPR wins and the Frontline Productivity Program opportunity?

Just thought we'd

stay on that topic.

It's very similar, to be honest. I think I discussed or alluded to in the presentation that there are EPR processes, I wouldn't say tenders at the moment, I would say they're in Phase 1 of their process, which is called pre-market engagement in the UK.

There are a number of those in the pipeline that we are engaged in along with other providers. We will follow those through and report to shareholders as and when they progress for us.

As I said, I touched on the Frontline Productivity Program, they are currently awaiting still the process through which they access those funds. That doesn't mean they're not talking to us and engaging with people about the potential opportunities, but the timing remains unknown to us.

Thanks, Kate. Next question is, I think for Matt.

Non-recurring service TCV in Q4 was $4.8 million. Is it correct that UHS Sussex represents circa $2 million of this, and what does the balance relate to?

Sussex is a very big project, so, yeah, the $2 million is a fair way off. I won't disclose the exact number, but the lion's share of the $4.8 million is from Sussex.

Thanks, Matt. Last question we've got here, I think this is back to Kate, are you in discussions with Dartford and Gravesham NHS to extend their use of Miya, noting their contract expiring in early 2027?

Yes, we are, like we do with all contracts that come up for renewal, expiration, we start discussions with them early on in the process. Yes, we are.

Actually, Dartford is currently deploying ED from Alcidion as well.

Thanks, Kate and Matt. They are all the questions that we have at this time.

Thank you very much, Nick and Matt, for joining me today, and once again, thank you to our shareholders for attending the call and for your continued support. I look forward to updating you later in August with the full-year results and an opportunity to update you on how we see FY27 shaping out.

Thank you.

Thank you, everyone.