Beamtree Holdings Limited (BMT) Earnings Call Transcript & Summary

Welcome, everybody. Thanks for joining us today. Those that are here with us at the Beamtree Head Office in Redfern, Sydney and those that are joining us online. Welcome, everybody, and thank you for taking the time at the end of the day to listen to the team talk to the year that was 2022. And for those interested and perhaps more importantly, what's happening in the business today and where is it pointed into the future. So being it's just gone 4:00 p.m., and we do have a quorum present, I'll declare the meeting open. And perhaps before we start the formal proceedings, I'd like to acknowledge this AGM is being held on the traditional lands of the Gadigal people, and pay our respects to their elders, both past and present. My name is Mike Hill, for those who don't know, Chairman of Beamtree and joining me today across the table from me here is Tim Kelsey, the Chief Executive Officer of the company; and to Tim's right-hand side is Mark McLellan, the Chief Operating and Financial Officer of Beamtree. I'm also joined by fellow directors, some of which are in the room here today and some are online joining us today, first of all Brad Lancken, who's online; Jim Birch, who's sitting next to me, to my left; Stephen Borness, sitting across from me; incoming Nonexecutive Director, Emma Gray's joining us online; and we have our retiring Director Paul Williams, also joining us online; and Andrew Gray who I spoke to you just before, is an [ apology ] for today. I'd like especially to welcome Emma Gray, who joins the Board of Beamtree today. It's been an announcement we made a little while ago when I transition towards this particular day. Emma brings exceptional experience in data and automation after recently serving the group executive ANZ Banking Group. Emma was responsible for driving data and the automation across -- the ANZ group, 1 of Australia's largest banks. Across the ANZ Group, Emma's responsibilities, including the build deployment and governance of data infrastructure assets and capability with a focus on driving commercial use of data internally and commercializing these capabilities externally. And prior to ANZ, Emma was the Chief Loyalty and Data Officer at Woolworths Limited to 4 years. So just through that biography, I think we can all clearly see that Emma is very well experienced in data, data analytics and how you use data to the best of its ability and I think will be a great asset to joining the Board for us going forward. I'd also like to acknowledge the contribution of 2 retiring directors on rotation, both and on behalf of the Board and the executive team to pass on sincere thanks to both Andrew Gray and Paul Williams, who both joined the company at the time of listing and through rotation of retired at its AGM. Both Paul and Andrew added significantly to the debate and discussions at Board level. And whilst we'll be missed in this forum will no doubt stay in close contact with the Beamtree team. The structure of today's meeting, as set out on the screen will be a short address from myself following that introduction. I'll then pass to Tim and Mark, who will take us through a series of slides for Beamtree covering off a number of aspects, as I mentioned earlier, with the 2022 year, but it's now passed, but also provide perhaps a few slides on what Beamtree is about what products do, but then also cover off the most latest update in trading across both Q1 that's been announced and then today, what we announced with regard to Q2 and the outlook for Beamtree in the years lying ahead. Third part of the agenda will go through the resolutions, the formal part of our meeting as set out in the notice of meeting. When I pass to Tim, I'll ask for those online that wish to ask a question to load the question on to the Q&A tab on the online screen. We keep an eye on those questions as they come through as finalize the formal resolutions of the meeting. And then at the end of those resolutions, we'll turn to those questions and address them as best we can. So 2022 was a year of significant change with the company delivering solid results in FY '22, our fourth financial year as a listed company. Our financial performance was strong, and we continue to build trust and confidence in our brand and operations as well as continuing to invest in the key areas of the business to support our domestic and international plans. Our customers and other key stakeholders, our investments in products, services and systems are delivering efficiency, resilience, market innovation and most importantly, better patient outcomes. For our shareholders, the result allowed Beamtree to consolidate its position as an exciting, fast-growing software analytics business in the global health care industry with significant prospects ahead. I believe Beamtree is well-positioned for continued growth. On behalf of our Board and our people, I thank our customers for their business and you, our shareholders for their faith and support. I also pass a special thanks to the staff, the team across the Beamtree business as obviously, without those people sharing the workload to deliver the outcomes we wouldn't be here today. I'm going to now pass to Tim to take you through the slides on the update, as I've mentioned. We will, as I mentioned, make sure we cover off questions at the end of the formal resolution. So please, as you listen to Tim and Mark take us through these slides, load up any questions you've got. And if we get to the end of the resolutions, and there aren't any questions, then the directors will start asking Tim and Mark a few questions, just to keep it interesting. So Tim, I'll pass over to you for the presentation.

Yes. Well, thanks very much, sorry, Mike. And just to say, can I just echo my thanks and thanks to the executive team for the incredible hard work that the team at Beamtree did and I'll say for the contribution of our Board based to the success we've had in the last year and thank also of course our shareholders for their continued support for this amazing business. So just to remind people that the history of the company, Beamtree itself as a brand was only instituted last October and builds really on the strength of those 4 businesses that have come together under that portal. [ Most recent ] of course, Potential(x), which was the service provider to Health Roundtable and to -- and the ability Roundtable, but has a very depth of data science and experience in supporting benchmarking and Ainsoff, an early-stage business with some tremendous innovation and the use of artificial intelligence and machine learning to drive real value from our RippleDown products and more widely in the -- I guess I'll come back to some of that work in the [ sector ], that's 5 things. So Beamtree today operates in Australia, New Zealand, of course, dominantly but now increasingly moving our focus overseas. We operate in 25 countries, which I think we added 4 or 5 countries in the last financial year to those work in. And that constitutes hundreds of hospitals, hundreds of laboratories and other clients. Sometimes we're working for a single government as in the case of the Republic of Ireland, for example, in other cases, we're selling direct through intermediaries, distributors to individual providers across the health and [ social care eco system ]. Next slide, please. Just that bottom part of the slide, probably relevant to this conversation. We -- over the last year, we restructured the company following those 2 acquisitions. And we've now organized ourselves around 4 product demand. And what we really stand for as a business and our vision is to change the future of health through automation and advanced technology and in particular applications that machine learning to solving some of the most pertinent problems in relation to waste and inefficiency in health care, but also, of course, to improving health outcomes for communities around the world. And those 4 areas of activity, I'll just come to now, I think, on the next slide. So just very briefly in terms of the product segments of the business, first focus diagnostic technology. So shareholders will be aware of our platform RippleDown, a unique expert system, which automates clinical and administrative process, very widely in the pathology laboratory and has done that for many years. We've grown that market segment really quite continuously. I'm going to try and bridge across some of the points that are contained in the AGM announcement and in the presentation to go through. But that segment has grown very significantly over the last year and since then also -- we have 2 products within that RippleDown portfolio that are directly targeted [ Pathology 1 ] supports the clinician and the laboratory, the other supports the management of data and sort of the administrative process as well. So RippleDown [indiscernible] Expert. Second, [indiscernible] activity relates to our deep expertise in the classification of clinical records in hospitals. This is a specialist area, which is common in fact, to all health care systems across the world. The coding, as it's called, or clinical records into specific formats, which can be used for analysis and for research but also for billing and reimbursement. And in many countries, errors in that dataset contribute significantly to the misallocation of financial resources. And this has become a very pressing and urgent for many of our clients, particularly in countries like Saudi Arabia and in Ireland as well as those in Australia. We also, in that segment, are looking to deploy more advanced technologies, building on a very distinctive SaaS services we currently offer to what is known as automate the coding process really to support computer assistance of classification so that the human staff that are engaged in this very complex process of converting clinical notes into formats that can be used for the purpose mention to support to be able to focus on the most complex cases and to be able to do that because most of the routine work is done automatically. And this is a very important area for innovation again globally, which we feel we are in a very strong position to support with our existing technology investments, particularly with RippleDown. The third area of our activity just remind colleagues, clinical decision support. So this is where we use our expertise in -- with RippleDown that's been so well validated in pathology over the years and now moved that into the hospital. And in this case, we have 3 user cases that we are now deploying internationally as well as in Australia. The most important of those in revenue terms is the Ainsoff Deterioration Index. That is a remarkable breakthrough, which as an algorithm reports on the likelihood of a patient's future condition 24 to 48 hours in advance of their potential deterioration. And that is not only a lifesaver in hospitals. So it's a very important economic tool to support the hospital management and the clinical staff to manage most optimally the critical care services in that. In fact, this has gone live is as usual over the last financial year and beyond that in Sydney and also it's now going into operational implementation in Central Adelaide in South Australia, but has please, and I'll come to this shortly. We have now run trials in Hong Kong and also in the U.K., which are beginning to demonstrate that the potency of this predictive algorithm is true in those health economies just as much as it has been in Australia. It's a very important area of product development focus for us in the last -- well, currently and in the last period. And then finally, but certainly not least, analytics and knowledge networks. So this really has been where we've driven the services around the Health Roundtable and the analytics -- sorry, the Ability Roundtable, but a range of other services as well, including a very emergently popular tool which supports the well-being of clinical staff in health care environments. Health Roundtable already, the dominance, well, really the -- not just dominantly the only national benchmarking collaborative in Australia, involving about 200 public hospitals. And yes, I'll come back to -- I'll start that in a second. So next slide, please. So just -- I've been through probably the core areas of our activity, and I won't dwell too much on this, but this clearly is in the slide deck for future review gives you a sense of the emphasis in all these products on recovering subscription-based revenues and the -- well, the value of these products in the environments in which they operate, means that almost -- we have a very, very low really nonexistent level of customer churn. So as you'll have seen from the full year results, our renewal rate is running at about at 90 -- well over 95%. That remains the case since then. So just a quick reminder of the highlights from the last financial year FY '22. So I think a significant growth in both annual recurring revenue and reported revenue. As I said, the contribution is naturally becoming much more significant over the last 12 months than it has been historically. Cash, a good strong cash position that's been enhanced subsequently by receipt of a delayed payment from a client in the Middle East. So that's been a significant -- that's a case since the full year results we report to. Next slide, please. And just in terms of some of those milestones for the last financial year, which I've already, to some extent, touched on, obviously, the acquisitions of Potential(x) [ name ] software game changing for Beamtree launch itself of Beamtree actually another key milestone after the acquisition of Potential(x). We had some very successful new wins in overseas markets as well as in Australia and New Zealand and good organic growth maintained particularly during the second half of the last financial year. That reflects, to some extent, the impact COVID had in its acute phase in Australia during the first half of that period, slowing that decision-making in our hospital marketplace. Renewal rates, very high. And just to make the point that we invested heavily following the capital raise we undertook in the previous financial year in, as Mike said, had a go-to-market capabilities internationally, but also in products -- product services in Australia during the period. Next slide. Just another way of looking at some of those developments stem the course of the financial year and we go into that with any detail that you have got in the slide deck that we will have access to. Next slide. So I think, this is probably a bit -- it's going to dwell on for a few moments. So if we can just get to Slide 10. So in the [indiscernible] we've had a very successful first few months of this financial year, we have towards sort of the calendar half year as it were. And these are just some of the highlights, both in terms of new wins for the business, but also just building on the client relationships we've established in the last financial year. So in terms of the diagnostic technology domain, which, as I mentioned before, is really RippleDown in pathology at this point. Some important steps forward. We contracted with Healius, which is Australia's largest [indiscernible] pathology and radiology services, our second largest in terms of pathology volumes. Our first contract with RippleDown, which has now been successfully undertaken in Western Australia, looking to expand that relationship across the national group. We -- in the U.K., we've also had significant success with RippleDown, where we've been running a trial, a contracted trial to investigate the productivity impact of RippleDown in supporting clinical pathologists in the network in the Midlands that we work with and the results of that trial will be very impressive and our media have led now to that network and moving towards full implementation. That's important for us because in the NHS, there are a number of regional networks and the influence of this finding in this network will have an impact on opening the door for us to the rest of the National [indiscernible] services. In addition, importantly, we, as I'm sure [ shareholders ], the way I've been renegotiating our contract with Abbott for distribution globally. And although I can't disclose final details of that contract at this point, we have confidence that, that contract will be finalized shortly. And part of the arrangements to get there were -- have been the winning of a series of new RippleDown installations through the Abbott partnership. And as you can see here, 8 new license agreements have actually been put in place since we last reported our results. So in the last -- a month or 2. And that really marks significant acceleration in the deployment of RippleDown globally. And we certainly aim to build on that with the new arrangements with other moving forward. Second. And our second domain in coding lot of activity, of course, in Australia and New Zealand, building on our existing very widely significant footprint domestically, but really reporting on the progress that we made in the Middle East where we have agreed a partnership with Lean. Lean is a government -- a wholly owned government company that is essentially operates a significant part of the national digital infrastructure as that is built to support the reform program in the Kingdom. And at the very heart of that is the importance of the underlying data. And 2 years ago, 18 months ago, Beamtree conducted a very successful audit in the Kingdom just reviewing the quality of those existing data assets. And in the wake of that, there's been a lot of activity to look at how our technologies is so wide in Australia could be potentially used in Saudi Arabia, which use the same data standards as Australia does. So in a way, a fairly frictionless opportunity to migrate the technologies that we use in Australia so effectively to support both private and public providers with data quality to do so in a similar way in the Kingdom of Saudi Arabia. And the partnership with Lean is important because being really are the leading digital agency and through that partnership, we will be able to distribute PICQ, particular coding technology I'm referring to a few hospital clusters in the Saudi Arabia context. In Australia, New Zealand, very high levels of renewal, which just support a number of new wins which we have detailed here, but we'll do in due course. Clinical decision support. I mentioned some of this already. So South Australia, Central Adelaide completed the successful trial implementation of the deterioration index now moving towards broader implementation. New South Wales to say already the deterioration index in business as usual deployment for all patients who are admitted into that hospital. And in Asia Pacific, we've just completed our first analysis, which demonstrates a very consistent standard of results in relation to the impact of this algorithm on early detection of potential risk to patients and now moving to Phase II trial of that. So very encouraging, early indications of the value of this technology in, frankly, one of the most important areas of patient safety in health care. And then finally, Health Roundtable, renewal rates, very strong. [indiscernible] there just recently signed up for membership for a further 4 years. And we are engaged as being treated service providers and Health Roundtable with the Board of the Health Roundtable to now look at the strategic opportunities to really offering enhanced value to members as we move forward of meeting all the new asset we're developing meets that health care providers have in the post-pandemic environment. And then just a quick note on another network innovation, which has we've been developing. So global health comparators was launched probably just towards the end of the last calendar year already have our first international contract signed and moving towards its first international meeting next March. This is an important initiative because it brings together generally larger international hospitals and getting the ability to compare their performance and to engage in discussion about -- about how they can improve on the back of that, building really on all capabilities that we've been heritage through Health Roundtable, so good synergies in that context. Next slide, please. And we remain very bullish about the outcomes for the remainder of the -- of this financial year. So just to remind you, we have given an indication at the time of our full year results that we would be targeting around about 35% year-on-year growth in revenue. We are still confident that, that can be achieved despite the broader economic circumstances. We are also -- we report a very significant growth in the international sales pipeline. I've given some indications of that, but there are a number of other countries that are in play Singapore notably for [ revision ] or services as we move forward and so on. I mentioned Abbott. We -- obviously, as we begin to accelerate these market opportunities, margins will increase. So again, positive section now. We've been managing our cost base extremely tightly, as you would expect. And as we had already forecast in the last -- for the last 2 financial years, actually, that we intend -- following the financial raise patient [indiscernible], we would be investing in the company in order to get it on to the right trajectory for the kind of growth we're now beginning to harvest in terms of revenue that we would be reporting an EBITDA overall net loss in this financial year. We're on track to achieve those objectives and moving in that context to operating cash flow for this financial year so that we would be back into the kind of underlying profitability of the business in the next financial year. Basically, the main points, I think. Mike, is that...

Yes.

So that's essentially by the main points I would like to make. But just again to thank staff and our clients, of course, we've previously working with them and also our shareholders thanks on your support.

Thanks, Tim. Yes, I think there was 1 more slide there. Just that was just another reiteration of the sort of longer-term view, and I think confidence remains. And certainly, if you take a look at the update that the company has provided on some of that momentum across all 4 parts of the business, you'll see quite a number of substantial new customer wins, opportunities, procurement, implementation of its products, not only in Australia but around the world. So some exciting times across all those 4 categories. So thanks for that, Tim. As I mentioned before, questions that you have, either from reading the published information that we've loaded up to the ASX or the presentation or what you've just heard from Tim, please? [Operator Instructions] So moving right along. The third part of the business today is to cover off the resolutions as set out in the notice of Annual General Meeting. That notice of Annual General Meeting was forwarded to all registered members on or about the 25th of October 2022, and we will take that as read for today. The voting on all resolutions will be conducted by poll. For the purpose of poll, I'll appoint [indiscernible] of the Automic Registry Services, the company's share registry, who have examined and prepared summaries of the proxy forms received, and to act as returning officer and to conduct the poll. The persons entitled to vote on this poll are all shareholders, representatives of shareholders or proxy holders who hold yellow voting cards. If you're attending in more than 1 of those capacities, you will be issued with as many voting cards as you have separate capacities. If anyone believes they are entitled to vote on this poll in any capacity and does not have a yellow voting card in respect thereof, please raise your hand now and a member of our share registry team will assist you. Okay. At the appropriate time, I'll ask that you mark your vote for the resolution on the yellow voting card. If you are a shareholder and wish to cast all your votes for resolutions, please place the mark in either the -- for, against or abstain box next to the resolution. If you wish to split your vote, please write the number of portion of votes you wish to cast and each corresponding for, against or abstain boxes. Please note that some of the split votes must not exceed your total holding. If you're a proxy holder, a summary of the votes to which you're entitled has been attached to your voting card, the summary of the votes includes discretionary votes, these are yours to cast at your discretion. If you wish to cast discretionary votes, please place a mark in the corresponding for, against or abstain boxes. If your summary of vote does not have any discretionary votes and you do not need to mark your voting card and we'll simply need to have it to the returning officer at the end of the resolutions. After all resolutions have been read and voted upon, please place it in the ballot box that will be circulating -- circulate the room. Any questions on the voting process? Any questions that have popped up online concern the voting process?

[indiscernible].

Perhaps allowed if there's anything that comes up in regards to any of the resolutions. Or if there are any questions for the company secretary or share registry, we can assist. But I think we've not got much there. Proxies that have been inspected and all those validly lodged have been accepted. Proxies have been received, representing approximately [ 109 million shares ] or 45% of the issued capital of the company. All undirected proxies or open votes that have nominated the Chairman of the meeting as their proxy will be cast in favor of the resolution in the notice of Annual General Meeting. Moving to the financial statements and reports. The first item of business is the consideration of the annual financial report of the company for the financial year ended 30th of June 2022, together with the Directors' declaration, Directors Report, Remuneration Report and Auditor's Report. Financial report and the reports of the directors and auditors are now laid before the meeting. There will be no vote on this item as it is a discussion item only. Company's auditor for 2022 financial year. Gareth Few from BDO is present to take any questions relevant to the conduct of the audit and the preparation and content of the independent auditor's report. If you wish to discuss the annual report, please let me know or any questions on the Q&A? Okay. I'll keep going, but we'll keep monitoring.

Okay.

Yes, if anything pops up. Now, let's go, we've got some business questions coming through. I'll go as quick as I can through the resolutions. Resolution #1 was the adoption of the remuneration report. It is to consider any thought fit to pass without amendment, adoption of the remuneration report as an ordinary resolution. We have that up on the screen now. Any questions on that resolution? No. The proxies in relation to this resolution are now seen on the screen [ 87.9% ] in favor of those proxies received. I put the motion, please mark your voting card instruction for the resolution or yellow voting card. Resolution 2 is the election of Emma Gray as I introduced earlier as a Director of the company. This election of Emma is an ordinary resolution. Any questions on Emma? No questions? Nothing online? I put the proxies received in relation to this resolution [ 89.7% ] in favor. I put that motion forward, and those with voting cards, please mark your card. Resolution 3 was the reelection of Stephen Borness as a Director. This election of Stephen is an ordinary resolution. Any questions? Online? The proxies received again [ 89.7% ] in favor put that motion. And those with yellow voting card, please mark your vote. Resolution 4 is the reelection of Brad Lancken as a Director, also an ordinary resolution. Any questions on Brad? Proxies received 89.63% for Brad. Put that motion forward. And again, if you hold a yellow card, please mark that. Resolution #5 was ASX Listing Rule 7.1A, approval of future issue of securities. This resolution is a special resolution. Any questions on this resolution is set out on the screen. Nothing online? Questions in the room? Okay. The proxies received in this relation to this resolution, 80.4% in favor. Put that motion, please mark your yellow voting card. Resolution 6 was the approval of the employee incentive plan. Again, an ordinary resolution. Any questions on the incentive plan? Votes received in favor 99.6% favor. I'll put that motion -- sorry, the proxies received in relation to that. I'll now put that motion. Getting there. Resolution 7 was the approval of the issue of rights to Stephen Borness as Director of the company. As look forward on the screen about the particular resolution. It is an ordinary resolution. Any questions on that one? No? Proxies in relation to that [ 86.97% ] in favor. I put that motion. Again, if you've got a yellow card, please indicate your vote on that. As the next resolution relates to me, I'll pass to Stephen to do resolution #8.

Thanks, Mike. Resolution 8 is the approval of issue of rights to Mike Hill as an ordinary resolution. Is there any questions in regard to this resolution? Anything online? Proxies are [ 88.17% ] in favor. So I now put the motion. Please mark for voting instructions for the resolution in the yellow card. Thank you. Now I'll pass it back to Mike.

Thanks, Stephen. Resolution 9 is again, a similar resolution for Brad Lancken [indiscernible] to Brad as an ordinary resolution. Any questions on that one? All right. Proxies on screen, [ 88.02% ] in favor. I'll put that motion and those with card, please mark that. Resolution 10, approval of the issue of rights to James Birch, Director of the company, again, similar resolution as an ordinary resolution. Proxies received in relation to this resolution, assuming there's no questions on that, by the way. [ 88.23% ] in favor. I'll put that motion and please mark your voting card. Resolution #11 is the approval of issue of rights to Emma Gray, Director of the company. Approval of the issue of rights as an ordinary resolution, again, similar to the previous resolutions. Any questions on that one? No. The proxies received 87.17% in favor. I now put the motion and those with cards, please mark that. Almost the Resolution 12 is the appointment of the auditor. The appointment of the auditor is an ordinary resolution as indicated on the screen there. Any questions on the auditor appointment? I'll put that motion forward and those with voting cards, please mark your vote. Resolution 13 was the amendment to the company's constitution. This is a special resolution, a very common resolution we're seeing with companies at the moment. Any questions on that one? No questions? Proxies received almost 100%, 99.85%. I'll put that motion, please mark your voting instructions on the yellow card. Resolution 14 is the final resolution is the renewal of proportional takeover provisions. This renewal of proportional takeover provisions as a special resolution. Any questions on this one? Let's put up on the screen. The proxies received 98.73% in favor. I put that motion forward. And again, last vote of the day, if you could indicate that on your yellow voting card, if you hold one. That concludes the resolutions to be voted on today. Has everyone completed their yellow card that holds one. I will invite Automic to collect the voting cards. Ballot box here. Have all persons that intend to vote voted now? Good? Okay. I'll therefore declare the poll closed. Thanks for taking the time to walk through all those 14 resolutions. The staff of Automic will now process the poll, and the results will be announced to the ASX as soon as they're available. Moving on to other business. Is there any other [ law ] for business that could be brought forward today?

[indiscernible].

Okay. In that sense, I will -- declare the meeting closed only to move to the Q&A session to allow some further discussion on Tim's operational update and trading update. So Tim and Mark, do you want to take us through the questions?

[indiscernible] 17 questions. So [indiscernible]

The first question was -- could we please elaborate Western Diagnostics [indiscernible] up and running. And in terms of contract value, how this is compared with, say, Ampath. So just to unpack that a bit, Western Diagnostics is the Healius Laboratory I mentioned earlier in Western Australia, which we recently contracted to implement [indiscernible] implementation has been effective now. The -- it is -- the Ampath, it's not possible to say at this point what the relative value is in relation to Ampath but it will be smaller than the Ampath contract. And then a second related question in terms of the Abbott Labs agreement, can you explain the geographics spread of the agreement [indiscernible], and slide up [ 4 ]. So the geographic spread of the agreement will be global with a principal focus there on EMEA. The EMEA and obviously Australia, New Zealand but it does include the U.S. So that's going to be a new -- I mean, a territory which we will be putting some focus in over the coming period of the arrangement in the event that it's finally agreed. And the projections that I've been to sign up for is it's some relevance to the negotiations we're having with them in that sense. As the company identified further question any issues that reduced the volume of deferred share published for the Potential(x) acquisition.

I think in relation to that, I think what we would say is that the relationship with Health Roundtable is going extremely well. That question relates to obviously the acquisition Potential(x) and there's no new need to determine and in relation to that until next year. But I think the key thing is the relationship with Health Roundtable is doing extremely well.

I'd like to absolutely do that. And then a related question, who with inventory service ahead of the Health Roundtable following the [indiscernible]. And that person is [ Victoria Hurst ], who is in that role clarity. So then me move on to another question from [ Mike Burn ]. Those previous questions were anonymous. This has been identified Mike by representing [indiscernible] equity. How much of the cost base needs to be flex upwards support the revenue objective for over the next 2 to 3 years?

I'll take that. Good question. I think the business will need ongoing investment to support the growth aspirations both domestic and international. What that looks like in terms of dollars term, we continue to work on, but we're balancing that against the need to move to a positive operating cash flow and positive profitability. So there are a number of things balance out what that cost base looks like going forward to be determined, but it's still investment provider across a number of parts of the business.

Moving on another anonymous question. In terms of Ainsoff in Central Adelaide, now you are in procurement phase, can you elaborate the pricing model? And so how you price the product, number of ICUs, number of beds? Would be a rule of [ thumb ] approach to gauge on a commercial basis. So I think on that one, that's still work in progress, and we'll be able to make an announcement on the pricing approach you're going to take to the deterioration index when we've got further into the negotiation process.

Yes. And to the extent we can't because it is commercially sensitive.

Yes. Next question, how much -- have you had much interest in neighboring groups such as Southern and Northern Adelaide? And the answer is yes. But we're -- we have...

I think there's a question later on about where we are in terms of the product availability around Ainsoff too. So we are still working on a minimum viable product. That's expected to be available in the second half of this financial year.

Turning to the NHS -- just remain. So can you provide a pathway to get the ADI commercially for procurement by hospital groups across the NHS? So in fact, the ADI in its trial implementation is already contracted into NHS hospital trusts, 1 in [ Lancashire ] and the other [indiscernible] Warwickshire and so we are very positive about the opportunities for get that instrument to be deployed more widely into house service, but we are waiting for the outputs of those trials in those 2 -- with those 2 trusts that is [ already ] conducted. When you mentioned 95% renewal rate? Is this a number of clients who renew or the dollar value of the new subscription.

[indiscernible] It's both.

Yes, it's both. It's [ 95% ] in clients as well as -- the -- our clients [indiscernible] increase their loan subscription. So this is a really important point. We are very actively reducing pricing upwards, obviously, partly driven by inflationary pressure, but also actually by the rate of return investment that clients get from our products. So I think we are engaged with this actually going constructive conversations with clients appointed with you on price increases really because I think historically, we inherited sort of quite underpriced client relationships, which not that the clients don't value those relationships and the clients can absolutely see the value of the products. If you just to say we're not in the business really of producing the value of our ongoing subscriptions. Can you elaborate our RippleDown IP is protected in the case of Abbott Labs and in commercial agreements, but the RippleDown product is embedded in an Abbott Labs customer. I can only speak to that from the current arrangements with Abbott, which are that in the event that, that did at the client where we would inherit the clients and have no rights at all over the IP product.

But the other thing I'd add is we need still a license, as soon as you got by end date to when they end, they need to renew that license, where you have given license key and if you don't have a license key then RippleDown you can't use it.

Do you expect to be operating cash flow positive for the entire FY '23.

I think we said we will move towards positive operating cash flow by the end of FY '23.

What do you expect to the capitalized R&D spend in FY '23 [indiscernible] is [ $2.4 million ] in FY '22?

So we are anticipating to be around the same level in FY '23 versus FY '22.

Do the NHS trust the [ care ] individually or are there other framework agreements where multiple trust [ procure ] together. Both is the answer. And I won't elaborate too much, but the newly integrated [indiscernible] system structure in the NHS means that the multiple provider procurements are going to be much more likely in the future than is best shown [indiscernible]. Does the interest on contracts with the private hospital network separate from the Health Roundtable? It seems that renewal rate continues. I'm going to have to seek advice on that question. That's a question relates to the nature of membership within Health Roundtable, which does have private hospital members, but I'm going to come back on that question, if that's okay. Is the Ainsoff product ready for commercialization or will you take some feedback at [indiscernible], I think. Can you give a rough indication of the outlook to contract size, both new license sales and back book renewals and the potential new Abbott agreements?

I think on the back -- we got back on [ 27 licenses ]. They were all going to expire over the next 5 years, and there will be an uplift in pricing the exact quantum still being some to [indiscernible].

It will be governed by the new distribution agreement.

Right.

Just 3 more to go. And sorry, I didn't -- across all of your products, you seem to be delivering lots of value cost efficient customers, i.e. getting your fair share in terms of pricing our products appropriately. I think the answer is we're getting to that we are getting there with that. I think historically, the company has been -- has perhaps not had the self-confidence started that the individual companies really -- to really ensure that the value of the product to provide those customers to articulate in a way where the pricing arrangements related to the value certainly for new products, obviously, that's not going to be an issue. But we are finding [ Ampath ] I think, to demonstrate this pretty clearly when you can properly demonstrate value. The pricing is considered by the clients if we can just pass on that value realization rather than in terms of [indiscernible]. So the answer is we're certainly getting there with our back book, but it's a very important point. Final, we're not quite focused on cost base. They need to add headcount. I think we...

I answered that already.

Yes. And then finally, cost. [indiscernible] tails this time those previous questions were anonymous say cost control year-to-date impressive. What impact, if any, are you seeing or do you foresee on this business from current global inflationary pressures and how are you addressing these? So the answer to that question is that health care is, of course, absolutely not immune from these inflationary pressures. And also has its own internal fiscal constraints generated by a whole range of different facts in different countries. But we are not currently seeing the kind of global economic challenge impacting on our growth opportunities. If anything, it's beginning to drive much more concentration amongst our sort of addressable market at ways which they really can drive productive value from the limited resources, both human and fiscal that are available to them. So I would say fully enough, it's certainly a very real pressure that's felt, but we're not -- we're seeing -- we're not finding it -- of course, again, sort of downturn in our market opportunity. If anything, I think driving a much harder focus on areas where technologies like those we produce can actually improve the sustainability and quality of services. But in addition to which, of course, in terms of our kind of supply chain cost pressures, we are obviously looking to, as I say, look at pricing in relation to ensuring that we're covering ourselves for the days kind of cost pressures of the business. So that's how we're addressing that. And then Mark [indiscernible], says thanks, everyone. And then anonymous finally, thank you, [ Bart ]. Are there plans to move [indiscernible] genomics? And the answer is, obviously, it's -- the area precision RippleDown has got some fantastic credentials in the automation of clinical process in current pathology and we believe it has got very considerable value in application in the emerging opportunity around genomics and precision medicine. So the answer is essentially yes to that.

Right. Well, that was a really good set of questions, I think, and save the directors from the shilling the gaps in silence. I'm pretty happy with that level of questioning and the areas that shows people have taken a lot of interest. And we did try to summarize a lot of these points. A lot of these new customer wins in the materials that were published today. So please, if we didn't get the answer to your question exactly as you are hoping, please refer back to those documents and should you still be needing further help, please reach out to the company, and we'll do what we can to answer any outstanding points. But that concludes today. Thank you, everybody, for joining us here today, and thanks for those joining us online. And especially, thanks for all those questions. That were good. So thanks, everybody. We'll close the meeting.