This blog is totally independent and has only three major objectives.
The first is to inform readers of news and happenings in the e-Health domain, both here in Australia and world-wide.
The second is to provide commentary on e-Health in Australia and to foster improvement where I can.
The third is to encourage discussion of the matters raised in the blog so hopefully readers can get a balanced view of what is really happening and what successes are being achieved.
Tuesday, September 06, 2011
The Sorry State of Listed Health IT Companies in Australia. Pretty Sad!
It really has
been a pretty bad time for large Health IT companies in Australia.
First we had
the well-known collapse of iSoft and its purchase by CSC.
as the death knell of the Australian Listed Companies reporting season we have
had the following news:
and e-business services company ICSGlobal (ASX:ICS) swung to a maiden profit of
$204,000 in FY11.
lifted its revenue from continuing operations by 35.6 per cent to $1.7 million,
led by a 69 per cent increase in revenue from the UK in local currency terms.
The contribution would have been higher were it not for an 18 per cent increase
in the value of the AUD against the pound sterling during the year.
financial report, ICSGlobal said it is well-placed to expand its UK business
this financial year.
the company concentrated on streamlining its operations, and now no longer
employs any full-time executives here.
also lifted by the first proceeds from the sale of ICSGlobal's Australian
Thelma e-health business, worth up to $1.25 million.
is great fun. The Australian business has been closed down, the former CEO who
managed accumulated losses of near to $32,000,000 has returned to the board as
a Non Exec Director and directors fees have been well over ½ of the profit.
It is just
impossible to conclude either of these companies are being run for the benefit
of shareholders in any way at all. Key advice is not invest in sub-par money
loosing enterprises like this if you value your savings.
At the other
end of the scale we have ProMedicus (ASX:PME).
Here is their
Pro Medicus Limited full-year results
e-health company Pro Medicus Limited [ASX: PME] today announced its full-year
results for the year to 30 June 2011.
·Revenue – $14.07m, 27.7% lower than last year’s
revenue of $19.46m
·Gross profit – $13.61m, 23.0% lower than last
year’s gross profit of $17.68m
·Net profit – $0.50m, 87.2% lower than last
year’s net profit of $3.92m
·Cash reserves – $3.26m
·Company remains debt-free
Chief Executive Officer, Dr Sam Hupert, said the full-year result was in line
with guidance made to the Australian Securities Exchange on 20 May 2011 with
revenue affected by fewer new sales than anticipated. Profit was further
impacted by several factors including a number of one-off payments and the
strong Australian dollar with foreign exchange fluctuations reducing the
company’s profit by more than $1.1m. As a result, no dividend was declared in
the 2nd half.
year has been a difficult one – but I am confident that Pro Medicus is turning
the corner,” Dr Hupert said. “We have cleared the decks and taken some
financial hits and are now in better shape. We believe that last year will
represent the bottom of the cycle for us and we will move up from here.”
said Pro Medicus continues to invest in new product development and will
release its new RIS technology platform before the end of the year.
“This is a
new product which we think will reposition us as market leaders,” he said.
“Importantly, with our new offering, we are able to configure business-specific
workflow and rules to suit clients’ needs without needing to customise the
program for each client. This will make a huge difference to both us and our
clients. This is a new concept, and a significant advance on what is currently
in the market. Unfortunately, like many large scale development projects, it
has taken longer to complete than expected but it will be worth it.”
different picture with both cash in the bank, no debt and profits! What a
must not ignore Primary Health Care (ASX:PRY). They own a health technology
division which was the old HCN and which owns Medical Director.
still doing OK with revenues about $50M per annum but the revenue is flat and
the profit margin is dropping. They failed to sell the division recently due to
no-one wanting to pay the asking price apparently.
All in all it
is a pretty sorry sight. We really should be doing better than this is a sector
with a pretty good health system and some pretty good IT developers. I guess
most of the better and more useful action is in the smaller unlisted sector
(think Best Practice, Medical Objects, Pen Computing and so on).