Alcidion Group Limited (ALC.XA) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to Alcidion's Full Year Financial Results Webinar for the 12 months ending 30th of June 2025. Before we begin, I would like to acknowledge the traditional owners of the land from which I'm presenting today, which is the Wurundjeri people of the Kulin Nation -- of the Kulin Nation and the lands from which all of you who joined me today also. And I pay my respects to their elders past and present, and I extend that respect to all Aboriginal and Torres Strait Islander peoples, who have joined us on the call. As this is our full year results, joining me on the call today is our Chair, Rebecca Wilson; and our Chief Financial Officer, Matt Gepp. As is normally the case, we'll take you through a presentation covering the key financial and commercial highlights of the year, followed by our thoughts on the outlook ahead, and then we will open up the call at the end for Q&A. In addition to the results information that was released today, we will be undertaking a roadshow in mid-September, and we'll expect to release a further deck around the growth strategy at that time. All attendees will have the opportunity to ask questions at the conclusion of the presentation. [Operator Instructions] So we'll aim to answer as many as we can. We'll group similar questions together if they have a similar theme to them. And if we run out of time or unable to answer your question, please feel free to e-mail directly [email protected], and we'll seek to address them as soon as possible. Also, as a reminder, the webcast is being recorded, and it will be available later today on our website. Before I get straight into the results, for those of you who are new to the Alcidion story or would just like a little reminder, I think I'm just going to give you a very quick overview of Alcidion, the Miya Precision platform. And just a reminder about some of the key problems we aim to solve for the health care system. At the core, Alcidion is a health care and data and informatics company. We ingest data, consolidate it and analyze large amounts of information and present it back to our customers in a way that helps them to streamline hospital workflows, reduce the administrative burden and ultimately improve patient care through supporting clinicians in their delivery of that care. Simplistically, we really aim to support those health care professionals by giving them tools that make their jobs easier. The solutions we build aim to do that in a proactive way rather than reactive, so helping to reduce that burden of administration by presenting information to clinicians in a way that helps them to more effectively and efficiently deliver the care that our patients need. The flagship platform is Miya Precision. It's a cloud-based modular solution. The platform runs through the middle. We've created a number of modules from that. The purple bar across the middle there represents Miya Precision as a platform, and that's deployed into every customer setting in a way that essentially provides them access to all the modules ultimately from the first point of implementation. However, they license access to those individual modules as the customer requires them or needs them and so they can be activated over time. On deployment, Miya ingests information from multiple data sources, pathology, radiology, document management systems, legacy PAS, our own PAS, EMRs and so forth, map that data to a standard format and then use that to present information in ways that supports health care delivery. So every customer may only be using 2, 3 or 4 modules of Miya Precision, say, Miya Flow and Command is a good place for people to start, but the full underlying platform is available. And that's how we can continue to add modular sales without a great deal of continued implementation effort from Alcidion. We really believe this modular architecture is one of the key drivers for our product offering, and it really is a unique point of difference in that you do not need to go in and do everything at once. At present, we have around 16 unique modules. And as we've recently demonstrated with our ED modules and our Miya Scribe modules, we do have a world-class development team that supports ongoing development of those modules, and we can continue to commercialize new capabilities over time and as the health care system changes and morphs. We currently operate in 3 main geographies: Australia, New Zealand and United Kingdom, and we'll talk a little bit more later about potential to expand those geographies. I won't spend a lot of time on this slide as many of the key points are covered in more detail as we go forward. But at a high level, I think they're heading a record year for Alcidion does a great job of summarizing what FY '25 was for us across many areas of the business. Having invested to scale the business and deliver on a couple of large projects a few years ago, we rightsized the business last year ahead of the start of this financial year as in FY '25, the one past now, which set us up really to deliver on a healthy pipeline with a more maturing operating model across geographies. So we had scaled the business, invested to a point that enabled us to now have a repeatable mature model as we add new capabilities and new geographies. This year has been an exciting one for us to see the benefits of those decisions and reap the hard rewards from our team. We won multiple new customers during the year, including our largest single TCV contract to date. And that -- those 2 things combined are a significant validator of the Miya Precision platform and how it adds to our position and consolidates our position as one of the go-to providers for acute enterprise health care solutions. Now that we have those core building blocks in place, scale, stability, profitability and market demand, we're really focused on continuing to build the ARR position with new customer wins, whilst also expanding into new products and geographical markets that will allow us to accelerate our growth opportunities. As I mentioned in that slide, financially, we delivered a record result for FY '25 across multiple key metrics, and Matt is going to take you into further detail in these. So I just want to touch on a few points before he takes over. We delivered revenue of $40.8 million, which is up 10% on the prior period, with the upfront license fee of -- from the North Cumbria deal contributing to that. Importantly, though, the annual recurring revenue or ARR as at the 30th of June 2025 was $28.5 million, which is up 31% over the same period last year. It's the first time Alcidion provided the ARR at a specific point in time in prior years, which we've also done this year as well. We only included the annual -- it's a very hard thing to say, the annually recurring portion of our revenue recognized during the year, which was shown in the P&L. The growth in our ARR is attributed to the material impact of several larger contracts we have won during the year, and I'll talk about those in a minute, coupled with a lower recurring starting base. Shareholders will recall from our results last year that at the beginning of the year, we restructured one of our major Australian contracts with Queensland, which -- where we had been the prime contractor and it was $2 million of revenue a year, and we moved to being the subcontractor and Rhapsody took over. And that made a lot of sense because the majority of the revenue was to go to Rhapsody. And so that meant that we had a lower starting point for the revenue for this year. So it's been really pleasing to see that ARR growth. It's also worth highlighting that ARR does not include any multiyear capital licenses, which are a feature often of the NHS. And that's despite the fact that those licenses will recur again. So they're not a perpetual license. They are actually -- the customer needs to repay the license fees when the contract renewal term is up, and that can be 3, 5 or 10 years depending on the type of contract. During the year, we signed $73.8 million in new TCV, which was up over 100% on the prior year. We delivered record underlying EBITDA of $5.1 million, which was an $8.5 million improvement over last year and is really starting to highlight the inherent operating leverage in the business. I know we've already reported cash flow, but just worth highlighting the $5.8 million of positive operating cash flow that we generated during the year. And in addition, we generated positive net cash flows of $4.9 million for the year. And I'm keen to highlight this point as it's important to know a couple of things. One, we currently expense all our R&D through the P&L, which, therefore, provides a largely accurate view of the operating profitability of our business. And at scale, this demonstrates that at scale, we can deliver strong net cash flow conversion. Moving off the financial highlights and on to the operational highlights during the year. We signed several new major customer contracts as well as expanding in value and extending in tenure multiple existing contracts. It was a busy year for us in terms of the number of contracts. And that is what you would expect to see from a business that is continuing to scale and grow and add customers year-on-year. Collectively, that resulted in a record year for new TCV signed, and that was obviously underpinned by our second EPR -- full EPR contract in the NHS with North Cumbria, which was a TCV of $39 million over 10 years. But we also signed several contracts across the Australian market with our presence, they're nearly in all states and territories. Key contracts included Hume, North Adelaide, Peninsula and all of them electing to take the core patient flow modules as the starting point of that journey. During the year, we continued also to look at the business as a whole and how we continue to strengthen and evolve the management and the leadership. We continue to look at the evolution of the Board and 2 of our directors -- we had 2 new directors appointed, Will Smart and Professor Andrew Way as nonexecutive directors, and they succeeded Simon Chamberlain and Victoria Weekes, who stepped down during the year. Importantly, both Will and Andrew have extensive health care executive experience across both the U.K. and the Australian markets, and they have a really strong belief in the use of digital solutions to better improve hospital efficiency and improve patient care. And if you haven't seen the video interviews that have been done with them over the last 3 to 4 months that you can see them on our website, and they really give them some excellent insights into their thoughts and views on the use of the Alcidion technology in that market. We also strengthened our leadership team, particularly in the U.K. with 3 key appointments. Paul Deffley, who might be known to some of you, is our current Chief Medical Officer. He's formally taken on the role of U.K. Managing Director, which is increasingly a very important role in our company, as you can see from the revenue split and the dominance of that revenue from the U.K. Paul will retain the role of Chief Medical Officer for the group as well. Darren Ransley joins us on Monday. He will take up the role of Chief Revenue Officer for the U.K., which is a newly created position with a clear focus on expanding and further accelerating our sales pipeline. Darren was previously the U.K. Managing Director for Better, and Better is the partner that we work for medications management in the U.K. And so he has a lot of experience in platform sales. Before that, he was the Senior Vice President for Global Sales for CliniSys, which is one of the leading global diagnostic pathology providers and another company that we partner with in the U.K. to round out our modular EPR offering. Also starting on next Monday is Tracey McLelland. She is taking on the role of Chief Clinical Information Officer, supporting Paul in his role of Chief Medical Officer. She joins us from a global health tech company, Dedalus, where she performed a similar role. She has a nursing background. And one of the key responsibilities for the CCIO is to ensure that we expand the capability and functionality of the Miya solution to meet the relevant and clinical practice standards of safety and efficacy, but also to understand how the clinical environment uses solutions such as ours. So it's going to be excellent to have these people join our team, and I'm looking forward to onboarding them starting from next week. I'm going to hand over to Matt now, who's going to take you through a little bit more detail on the financials.

Thanks, Kate. Good morning, and thanks to everyone who's joined us today for this results presentation. As we look at the P&L, Kate has touched on some of the key metrics we see here. In 2025, we saw a significant improvement in our results on all key metrics, new TCV sales of over $73 million very much drove those results. Firstly, Alcidion delivered its maiden net profit after tax of $1.7 million in 2025, a $10.1 million improvement on the prior year loss. And off the back of that, we reported positive earnings per share as well. In 2025, the business delivered 10% revenue growth, reporting a record $40.8 million revenue, driven by material new sales, including NCIC, which came with an upfront $8.4 million capital license. This was supported by other material new sales such as Hywel Dda in Wales and Hume NALHN and Peninsula in the ANZ region. With the exception of Hume, which we signed in July of '24, these new sales made only a part year contribution to this 2025 result. And as of June '25, Alcidion has $28.5 million of annual recurring revenue, and that's before we've seen any contribution from new sales in FY '26. This will underpin an increasingly higher portion of recurring revenue for future periods. As the implementation phase of the 4-year Leidos deployment, largely came to an end in H1, we saw an expected decrease in nonrecurring revenue of around $3.4 million. However, we will see this increase in FY '26 with a full year contribution from the multiyear North Cumbria deployment. As Kate touched on, we had an anticipated decrease in the direct costs, mostly resulting from a change in the structure of that ANZ contract, and we saw an overall decrease of 7% in our direct costs. With increasing revenue and decreasing direct costs, Alcidion can report an increase in gross profit of just over $4 million in the year. And this resulted in the gross margin percentage increasing to over 88%, in line with what we guided earlier in the year. With a focus on cost control during the year, we reported an overall decrease in operating costs of 10% and with increasing revenue and margin and maintenance of the cost base, Alcidion delivered EBITDA of $4.8 million, a $9.4 million improvement on 2024. So moving on to the revenue dashboard where we present various analysis of the revenue. In the top left corner is the half-on-half revenue, a record $23.1 million revenue reported in the second half of the year saw the business go on to deliver that full year record revenue of $40.8 million. On the bottom left, we can see the relative contribution of the core components of what has driven that revenue increase. On the top right, we see the U.K. business contributed 63% of the revenue in 2025, driven by the contribution from the NCIC and Hywel Dda contracts we signed in Q3. And this is the first time we've seen the U.K. contribute a greater share of the revenue than the ANZ business following contributions of 49% in '23 and '24. And then moving to the bottom right, we can see the percentage of recurring product revenue contribution over the years, which remains historically high at 64%, noting here that the capital license revenue is not included in that number. So this next slide is our revenue model. This graphic demonstrates that nearly all of our revenue now is driven by product sales with technical services making up less than 4% in the current year. It's important to highlight that 3 years ago, technical services, which is not recurring in nature, represented around 15% of our revenue. Product sales drives ARR in the form of ongoing support and maintenance, license and hosting subscription revenue. It generates multiyear implementation revenue and from time to time, like we see in the current year, material capital license revenue contributions. So moving on to the balance sheet. We end '25 with a strong balance sheet. It gives us greater operational flexibility as we enter FY '26, including cash, we have around $18 million of working capital at our disposal. Intangible assets are decreasing year-on-year as expected, and we amortize these at an accelerating rate. These are down $3.6 million in the year. Income in advance increased $2.2 million to $15 million, which is not unexpected given the record level of billing that we saw in the second half of this year. And finally, on to the cash flow -- finally for the financial section, sorry. We released the cash flow with 4C at the end of July. These numbers are unchanged from what we talked about in the July webinar. Alcidion ends the year with $17.7 million cash, strong balance sheet, a much improved working capital position heading into what is historically a softer Q1 for cash receipts, that's given the timing of our customer invoicing profiles. Off the back of that record billing mentioned a moment ago, the business collected $35.5 million of cash in H2. That saw us go on to deliver full year -- a record full year receipts of almost $51 million, up $7 million on the prior year. Conversely, we saw outgoing payments decrease by $5.7 million year-on-year to $45.2 million. Combined, that sees Alcidion deliver, while not the first positive operating cash flow result, certainly the most meaningful positive full year operating cash flow the business has ever delivered at $5.8 million, a turnaround of $12.9 million on the prior year. With that, I'll hand it back to you, Kate, to continue the presentation.

Thanks, Matt. As I mentioned at the outset, FY '25 was a record year for new TCV, and it did see us sign almost $74 million across multiple customer contracts, which included 4 new customer names. That started in July when we entered a new partnership with the Hume Rural Health Alliance, which is a rural health care system across Victoria, starts up at the Albury Wodonga region and comes right down almost into Melbourne. The initial contract was for $4 million over 5 years, but we recently expanded that contract in Q4 to include additional sites. And this is a really good representation of the opportunity that presents us to sign something in July to have them go live 3 or 4 months later and then to extend that to new sites. And there's some great stories that I could regale you with for some time, but please refer to the annual report for some information about some of our case studies. Later in the first half, we announced a new contract with the North Adelaide Local Health Network or NAHLN, as we refer to them, one of the larger health networks in South Australia. That contract was secured by a competitive tender process, and it will focus at least initially on supporting patient flow, command center operations and providing clinicians with mobile access to real-time data, including EMR data. NAHLN was also our first win for the Miya Precision platform in South Australia, which was the founding state for Alcidion and so particularly exciting for us in our 25th year of -- since being founded. Shortly after NAHLN, we announced a new partnership with Peninsula, which is a major public health service group that provides a diverse selection of care services across Frankston and the Mornington Peninsula. Recently, they announced that they're merging with Alfred, so that's going to be a really exciting opportunity for us to be able to demonstrate how we can share data across the platform across an existing customer in Alfred and a new customer in Peninsula. Peninsula likewise will be quite focused on flow command center operations, but also the mobile access to data from the EMR. In February this year, we announced our first customer in Wales, which is Hywel Dda University Health Board, values Patient Flow and Command, but also our Miya Observations and Assessments capability and Smartpage. Like several of our wins during the year, the Hywel Dda contract was awarded by a competitive tender. And again, giving a set-market validation in an attractive new market, which Wales definitely represents for us. As most of our new customers have shown, we are becoming one of the most sought-after platforms for flow, and it is that, that a lot of the health care system is focused on at the moment worldwide. As I've mentioned many times in these webinars, it is difficult to overstate the importance of patient flow in our hospital system at this point in time. It is a critical area for hospital administrators given the knock-on effects it has not only within the hospital setting, but into the broader community environment. And it is an area where we're seeing significant investment and attention. We are fast being recognized as the go-to leading solution for this in multiple jurisdictions and with our -- not only our increasing market share, but the customer referenceability that we're getting from these deployments is very important in the way in which it builds and feeds into the future pipeline for FY '26. Just a little bit about North Cumbria. I'm sure many shareholders are very aware of this milestone contract we signed during the year. Contract now carries a TCV in excess of $39 million over the next 10 years with approximately $9 million of that recognized in FY '25. The rest of it recognized a component of implementation over a 24-month period, but the rest of it is the annual recurring component of that contract, which looks after support and maintenance and hosting. At the core of the EPR system is Miya Precision, providing a full suite offering, taking into account all of the modules that we are providing them and also running on top of our patient administration system, PCS. The implementation phase is well underway and expected to extend over an 18-month period, which is pretty normal for these types of deployments. Given the modular nature of what we do, though, Northumbria will be able to realize tangible benefits early, and we expect to see them going live with the first components early in 2026. It will be our second full EPR contract into that market after the South Tees contract we signed in December 2023, which was a 10-year extension for South Tees. They had actually been with us since 2020. One thing I wanted to highlight about the North Cumbria EPR contract is how it continues to validate our capability as a solution that can be deployed alongside other niche vendors, but can also be a single integrated platform with deep functionality depending on where the customer is coming from. And it is that optionality, that versatility that really is a differentiator for the Alcidion proposition and from the Miya Precision platform. During the year, we also -- I've touched on this continuing to expand by value and extend by term, several of our existing contracts. Renewals are a very important part of what we do every year, though very low churn of our customers is an indicator of the satisfaction our customers have with the modules that they are using. The modular sales strategy is always -- has always been important to Alcidion, and it's part of our future growth path and a very important part of it. On this slide, I'd like to call out the Northern Territory relationship, which is a really good example of where Miya Precision is being used as a core platform sitting on top of somebody else's electronic medical record capability. But we have been in that account for over 10 years. We have upgraded them from the previous module Miya into Miya Precision. And then they continue to add-on partner products into that ecosystem. From a deployment perspective, we continued this year to deliver on our commitments to our customers. We've been through a number of these, but these customers underpin the referenceability. Referenceability is very key in health care. Health care providers buy solutions from trusted partners. And when you can point to the sort of referenceability and results that we are able to do for our customers, it helps to demonstrate that the value to new customers. I have previously spoken to this slide, but this will show you the modular -- how the modular nature can play out and how it has played out in this year for us. We see our real competitive advantage of being able to work with our customers over time to meet their needs and their budget and their digital maturity. So this is a sales strategy that's been highly successful for us over the years, and we can demonstrate here how it has really played out during the course of FY '25. We have several customers, both here and in the U.K., where we have Miya Precision contracts for initial modules such as Miya Flow, with options potentially for them to take on additional modules within their existing contract without needing to go to tender. Looking forward because we're well into FY '26 now. We start FY '26 in a very strong position with contracted revenue of $34 million, our highest ever. We expected to recognize that during the course of the year, and it includes ARR as of 30th of June and plus any contracted implementation and technical services revenue that we've already signed up. But similar to prior years, we expect to continue growing our contracted revenue during the year as new contracts are signed, and we'll continue to keep the market updated as they -- as material contracts are signed. At this early stage in the year, we are expecting EBITDA and positive and operating cash flow positive for FY '26 with the exact quantum for both of those metrics, as always, somewhat dependent on the timing of new contract wins. As the year progresses, we will update the market with greater details around that. In terms of our growth strategy, the Board and senior leadership have spent time together mapping that out over the past 6 months, and we will continue to elaborate on that as the year goes ahead. But it can be summarized as we will continue to scale in our existing core products and markets, particularly EPR, Flow, and virtual care opportunities in both Australia, New Zealand and the United Kingdom. And our increasing referenceability sees us playing an accelerated role in those markets. We are reviewing the ability to leverage Miya's capability in other health verticals such as aged care and community care. We see a large and growing opportunity in these markets that complements what we do around how do we take pressure off the health care system by supporting patients in other health care settings. And we have started the market testing and partner discussions and early customer analysis for entry into new geographies. And at this stage, we're focusing on Canada, Saudi Arabia and the United Arab Emirates, where we see that there is a market there that aligns -- Canada aligns a little bit to both Australia and the NHS and certainly in Canada and -- sorry, in Saudi and UAE aligns quite a lot with where the maturity is in Australia in respect of rolling out EMRs. We'll continue to look at M&A opportunities that may be appropriate, but strategic and synergistic in nature. We haven't -- and as I said, as a final comment, I really would like to thank sincerely the staff of Alcidion and the senior leadership team for their tireless work this year. They have really worked very hard to ensure not only new customers come to Alcidion, but that our existing customer base is well looked after and well served. I really believe that we are at an inflection point now that will enable us to accelerate our growth trajectory by leveraging this leading platform that we have in Miya Precision. On that note, I will hand over to you for some questions, and I'll come back for some closing remarks.

Thank you, Kate. Look, we've had a few questions come in before the webinar, and we have a few that have come in live during the webinar. I'll kick off with some of the ones that came in via e-mail. So the first question is, regarding capital license purchases, can you provide more detail on the structure of these? What is the time period? What, if any, recurring income is earned from these entities purchasing prior to license expiry/renewal?

Okay. So a few questions there. I touched on a little bit in the presentation. If you use North Cumbria as an example, which is one of the 10-year contracts, there is an upfront component, which is really the license. It's prepaying the license fee for 10 years. So they've paid that upfront. But they then have a support -- an ongoing support and maintenance fee and a hosting fee, and that is annually recurring. In North Cumbria's case, that's around AUD 2 million per year. As I also mentioned, we have some similar contracts in the NHS for modular contracts. It might be 3 or 5 years. If they have paid them upfront and we get to year 4, they do need to repay the license again, but there is always an annualized component to all of our contracts.

Thank you, Kate. Question on the pipeline, of course. What does the pipeline look like? When will we see some more conversion in the form of new contracts?

Well, I think I've touched on that a lot during the presentation. The pipeline continues to build, and it builds because of opportunities that are coming as a result of the great work that our customers are doing in deploying the platform and in amplifying the value that Alcidion products are bringing to the market. There are tenders continuing to be let in all of our markets. And obviously, there's the work that we are doing in terms of generating leads and marketing as well. So the pipeline continues to build. I cannot predict when contracts will come to fruition and when they will be signed and announced. And I know that our shareholders and people interested in Alcidion are somewhat focused on those contract announcements. But as you saw during the course of last year and particularly in Q4, revenue increases quarter-on-quarter with those opportunities and deals that do not meet materiality to get announced to the market as well. So there will be a combination of those to grow revenue during the year.

Thank you, Kate. Now I have a question -- a specific customer question here. Can you please provide an update on our relationship with Dartford and Gravesham NHS Trust, noting delays in their plans to procure a long-term EPR?

Well, I don't know if you want me to give you a really long story about how the NHS works in terms of allocation of funding. But Dartford and Gravesham have to put a case to NHS England to access funds in order to go to market for an EPR. They are working through that process. They, as far as I know, do not yet have funds secured. They have not yet gone to market for an EPR. So we would expect we'll be having a conversation with them when the contract comes up for renewal for extension.

Thank you, Kate. A question here about employee expenses. Employee expenses declined in FY '25. What are your expectation around staffing/expenses moving forward?

Look, the way -- with things the way we predicted them at the moment, we expect the staffing levels to stay pretty similar. Of course, we have invested in different types of staff potentially. So some of what we're doing is moving around the investment in particular parts of the business. So this year, very much we are investing in the sales and marketing and go-to-market capabilities of the business as will be seen from those investments we've made in the leadership team. There will be obviously some increase in the salary cost base as we look to provide staff with salary increases in line with market and in line with CPI. But our expectations is that we will maintain a pretty steady -- employee expenses are our main expenses. So that is where we will maintain that cost base going forward.

Thank you, Kate. I have a question here for Rebecca actually, following the Silverlink acquisition, can the Board explain how the company plans to ensure that future M&A activities will deliver value to shareholders?

Yes. Look, thanks for that, Matt. Look, I think with Silverlink, it wasn't so much as the actual acquisition, but the expectations around the return on that investment. And from a shareholders' perspective, perhaps thinking that we would sort of see some of those EPRs coming in earlier than they actually did. I would sit here absolutely with the confidence that, that was the right acquisition to make, and we're absolutely now seeing that come through and add value. Whenever we look at M&A, and we've done very -- we've done many very successful M&As over the course of the history of this business. We absolutely look at everything in terms of the valuation that's being paid, the expected return on that investment and how it's going to really support our future prospects and growth.

Thank you, Bec. Another question here. I think this is for you or me. Kate, should we expect gross margin expansion in FY '26 if the ARR percentage improves? And can you provide any further details on TCV added in July or August?

Look, I can probably answer it very simply. Gross margin expansion would continue to improve as ARR increased. The only thing that would change that is where we are selling modular products from a third-party provider. So it's the mix of those because obviously, there's a margin that is paid to those providers in that sense, but otherwise, yes. And the second part of that -- well, in terms of what we've currently signed, obviously, there's been no TCV added in July or August thus far that meets materiality or as we would have announced that to the market. And in terms of how we progress this quarter, we will obviously reveal that to the market when we do our quarterly cash update at the end of October. I can say that I am happy with how FY '26 is progressing thus far, and it is in line with our expectations.

Thank you, Kate. There's another question here, but it's more specific about the pipeline. How big is the opportunity in the U.K.? And how much visibility do you have on growing the pipeline over the next 3-plus years?

Look, I think the opportunity in the U.K., you cannot quantify it totally in terms of dollars because it depends if you -- as I've probably explained quite well, hopefully, during this webinar, a modular play means that we have the opportunity to be very flexible in terms of what we go after. The U.K. is moving out of a heavy emphasis on EPRs, although there are still several EPRs to come through the pipeline and in tender process now. So I will still see that going for another 1.5 years, 18 months or more. But we have the 10-year plan from the NHS as well, which has been recently released and where the 3 pillars, one of the 3 pillars, pillar #2 is a move from analog to digital. So whilst at this stage, I can't tell you exactly what the size of that opportunity is going to be because we are waiting to see how much funding is going to be allocated to that and over what time frame. I can confidently say that the U.K. is very much involved in how they continue to digitize the workflows in that environment and the opportunity for us is significant. And I wouldn't be making such an investment in the leadership team over there if I didn't believe it wholeheartedly.

Thank you, Kate. We're up to the last question, actually. It's quite a good one. Back in 2020, we supplied patient track at no cost to an emergency hospital in Manchester. What was the feedback? And do you think this helped with new and future contracts? Do we have any chance to offer similar trial software to new markets?

Yes. It was actually a lot before 2020, I think. It's a very interesting indicator about how you might move into new markets. So the way in which this business has got its very first U.K. site was, in fact, to do a trial with Manchester Community Foundation Trust for Patienttrack. We did it as a fully -- a full trial that was being independently analyzed so that we could produce and publish as a result of it. And that was the beginnings of how we became part of a supplier to the NHS. So it is definitely a very -- an excellent way, but also a way that you have to consider the time that is associated with that. But that was the very first implementation of that product anywhere in the world. We have referenceability in Western medicine for what we do. So I think it's a balance between going into markets, new markets such as Canada and so forth, probably in what we call a proof of concept or proof of application into those environments, but perhaps not necessarily having to take the same length of time to prove the evidence around it. So it's definitely something that we've done well. I don't think that we have to go so deep into it in terms of moving into the markets that we're looking at, at the moment, but it is a model that is tried and true in terms of entering new markets and one we will be certainly considering.

No more questions.

Thank you very much, everyone. I sincerely appreciate your time today. I do know that there are a lot of companies reporting and that you have spent time with us today, we truly appreciate. Once again, I would like to thank the staff of Alcidion for their hard work and commitment this year. My sincere personal thanks to the senior leadership team and the Board of Alcidion for the support they've shown me and the company during the year. Most importantly, though, I would also like to thank the shareholders who have remained supportive throughout this year, who have followed us, have continued to engage with us. And I look forward with optimism to the year ahead and keeping you updated on the progress that we make. Thank you.