Induction Healthcare: Half-year results

First year of revenue; strong momentum for recurring revenue

Induction, a leading healthcare technology company that helps achieve digital efficiencies for hospitals, their front-line clinicians and patients, announces results for the six months ended 30 September 2020.

Financial highlights

• First full year of revenue
• Strong momentum in sales and Annual Recurring Revenue (ARR) run rate across all its subscription-based software products
• Revenues of £0.6m, includes first revenue generated by Induction Switch (as previously indicated)
• Robust balance sheet, with net cash of £5.0 million; prudent management of costs and cashflow
• Deferred revenue at £0.6m (H1 2020: nil)

Strategic progress

• Induction Zesty (leading provider of patient portals to NHS Hospitals in the UK):
• Strategic collaboration with Cerner to resell Induction Zesty patient portal platform to Cerner customers in UK and Ireland
• Platform ‘go live’ at the Royal Free London NHS Foundation Trust¹
• Collaboration with Apple, Cerner and Milton Keynes University Hospital NHS Trust to enable Health Records on iPhone, a ‘first of type’ NHS innovation for patients
• Selected for NHSX Spark Dynamic Purchasing System to support organisations procure remote monitoring solutions
• Induction Switch (number one healthcare collaboration app in the UK)
• Accepted on to NHSX Clinical Communications Framework to help NHS Trusts phase out pagers and procure communication services
• First commercial contract with South Wales Trauma Network enabling multiple clinical teams to communicate via messaging and share resources
• Induction MicroGuide (platform enabling medical organisations to create and publish medical guidelines)
• Achieved first large-scale international commercial contract in Mexico
• As previously announced, achieved earn-out ahead of schedule
• Strong user growth and engagement (YoY)
• Induction Switch: users up 64%, directory calls up 34%
• MicroGuide: users up 32%, guideline page views up 40%
• Induction Zesty: users up 190%
• Continuing investment in product development to support new features and additional services

Current trading and outlook

• Sales momentum and recurring revenue provides a foundation for future growth
• Strong pipeline of orders with multi-year contracts
• Healthy acquisition pipeline targeting new and complementary products and geographies, supporting the strategy to add solutions that deliver value to patients, doctors and other clinicians
• Growth of registered users and user engagement across Induction’s product suite, and progress with key frameworks and collaborations such as NHSX Clinical Communication Framework and Cerner creates a strong foundation for continued growth in recurring revenue in the year ahead

Dr Hugo Stephenson, Joint-CEO of Induction Healthcare, said:

“The Group has generated excellent commercial momentum in the first half of the current financial year and has delivered its first full year of revenues.  I am particularly excited by our momentum with customers, such as the first NHS contract in South Wales for Induction Switch, and admission onto the NHSX Clinical Communications Framework.  We are proud to work in collaboration with Apple and Milton Keynes Hospital NHS Trust on a ‘first of type’ NHS innovation, enabling patients to view their Health Records on their own iPhone.  Our acquisitions continue to perform and integrate well, as shown by MicroGuide achieving its earn out ahead of schedule. We have an exciting and active pipeline of acquisition opportunities which will further enhance the product offering of the Group.

“Ongoing growth in user engagement, amongst doctors and patients alike, is testament to the value healthcare stakeholders are getting across the range of Induction products. This progress, allied to our robust balance sheet, future contracted revenue, a major collaboration with Cerner and NHSX Clinical Communications framework, supports confidence of further progress in the remainder of the financial year.”

¹https://www.royalfree.nhs.uk/my-rfl-care-patient-portal/

ENQUIRIES

About Induction 

Induction (INHC.LSE) is a UK based health IT company with leading user traction enabling the digital transformation of secondary care. This is done by rolling up smaller solutions that are loved by doctors, staff and patients and giving those solutions the infrastructure, credibility and interoperability they need to achieve commercial success at scale. Induction Switch is the number one healthcare collaboration app in the UK, used by the majority of hospital doctors. Over 190,000 doctors across multiple territories, including the UK, Ireland, Australia and South Africa - as well as a rapidly growing cohort of over 140,000 patients - choose to use Induction products over traditional methods of managing care.