ImExHS Limited (IME) Earnings Call Transcript & Summary

Okay. Good morning, everyone, and thank you for joining us today. We are happy to present the Full Year Results for IMEXHS Limited for the Financial Year 2024. Our agenda for today's presentation is as follows. Let's begin by taking a closer look at our company and its performance in the past year. Going to Slides 3 and 4. At IMEXHS, we remain committed to democratizing access to medical imaging expertise by delivering world-class cloud-based medical imaging software and radiology services. Our business is structured around 2 core segments: Medical imaging software. We provide cutting-edge AI-powered cloud-based imaging solutions that enhance diagnostic capabilities and streamline workflow efficiency. Radiology services, our comprehensive outsourcing solutions enable hospitals and medical facilities to access high-quality imaging services through both on-premise and remote models. Our innovative approach continues to drive growth and expansion across multiple geographies. Turning to Slide 5. IMEXHS has established a significant global presence. Software is deployed in 18 countries with 518 sites actively using our solutions. 27 distributors operate across 18 countries, strengthening our international reach. Radiology services are currently provided in Colombia, Spain and Mexico with a robust network of 36 radiology centers and over 160 in-house radiologists. Our expanding global footprint is a testament to the scalability and value proposition of our solutions. Going to Slide 6 and 7, business highlights. We are pleased to share some key financial achievements for FY '24. Revenue reached $26.5 million, reflecting a 34% year-on-year increase and a 27% increase on a constant currency basis. Annual recurring revenue, ARR grew to $30 million, up 20% year-on-year. EBITDA of $0.5 million showed an improvement from $0.2 million in FY '23. Closing cash balance of $2.1 million compared to $2.4 million in FY '23. These results demonstrate the continued resiliency and scalability of our business model. Going to Slides 8 and 9, operational highlights. We have also made strong operational progress. We secured key contract renewals, Colsubsidio, 3-year contract, $575,000 ARR and an increase of $150,000 versus prior terms. Colombian National Police, $2.5 million total ARR with an additional $352,000 in new ARR. New contract with Hospital General de Medellin, with an ARR of $230,000. We expanded presence in Peru with DPI $140,000 ARR. Software installations increased to 525 globally. Strategic price adjustments and improved cost control are driving margin improvements. Early-stage deployment of our new value proposition software across 8 customer sites. These developments underscore the strong demand for our solutions and the effectiveness of our growth strategies. Turning to Slide 10. A closer look at our financial performance shows software revenue grew to $8.9 million, an increase of 17% year-on-year. Radiology services revenue surged to $17.6 million, up 45% year-on-year. 97% of our total revenue is recurring, reinforcing our predictable revenue model. Net assets stand at $14.5 million, and the debt reduced to $1.2 million, down from $1.3 million in FY '23. Going to Slide 12. ARR reached $30 million, marking a 20% year-on-year increase. Software ARR stands at $9.9 million, a 9% increase from FY '23. Radiology services ARR reached $20.1 million, up 26% from the previous year. 59% of our software ARR is now priced in hard currencies, providing greater financial stability. These results reflect our strategic focus on building long-term sustainable revenue streams. I will now hand over to Reena Minhas, our CFO, for the financial presentation.

Thanks, German. I will now run through the FY '24 financial performance of the company, starting on Slide 14. FY '24 revenue of $26.5 million was up 34% versus PCP and up 27% on a constant currency basis. FY '24 revenue included a one-off sale of $0.7 million, 97% of the total revenue was recurring. Underlying EBITDA, which excludes share-based payment expenses, foreign exchange movements and an impairment charge was $0.5 million, which was up $0.3 million versus PCP profit of $0.2 million. Moving to Slide 15, the balance sheet. At 31 December, the company had a closing cash balance of $2.1 million and net assets of $14.5 million. Intangible assets of $8.1 million consist of goodwill of $4.6 million for radiology services business, software assets of $2.6 million and $0.8 million for customer contracts. Debt of $1.2 million at 31 December was down from $1.3 million at 31 December '23. Receivables include delayed outstanding payments from a customer, which we exited in September. The customer has entered into a binding payment agreement and payments are being made in line with that payment schedule. The receivable has been split as current and noncurrent in line with the payment schedule. Due to the early nature of the agreement, a credit loss provision of $157,000 has been taken in the year and will be written back to the P&L, as the outstanding balance reduces. The provision has been excluded from underlying EBITDA. Slide 16 summarizes the cash flow. The cash balance at 31 December was $2.1 million versus $2.4 million at the end of the prior year. This revenue growth during the year consumed significant working capital, leading to net cash used in operating activities of $0.6 million. Net cash used in investing activities of $0.8 million was down versus PCP, mainly due to the sale -- proceeds from the sale of an MRI scanner of $0.8 million. Net cash from financing activities was $1.1 million with $1.5 million raised via a placement to strengthen the company's balance sheet and to support growth. I will now hand back to German to take you through the strategy and outlook.

Thank you, Reena. Looking ahead, we are committed to executing our new value proposition, which will make us much more competitive and focuses on: first, AI-enhanced radiology software, enabling advanced imaging capabilities; 2, enhanced cybersecurity with ISO 27001 certification in progress; and 3, operational efficiency improvements, ensuring faster deployment and better customer support. Turning to Slide 19, product and software updates. New AQUILA RIS-PACS system, which is cloud native and HIPPA compliant is now about to get the ISO 27001 certification. AI-powered enhancement fully integrated. We have also successfully deployed the trial of our new value proposition at 8 sites with very positive feedback. Universal Viewer is also getting improvements like faster image loading and enhanced MR series segmentation. We redesigned our DICOM Gateway to lower customer implementation costs. And the IMEXHS Patient Portal version 3.2.0 now has better communication and integration capabilities. Turning to Slide 20, focus areas for FY '25. We have set clear priorities for the coming year, expanding software sales in Mexico and Latin America, optimizing radiology service contracts for better profitability, continuing disciplined cost management to enhance operational efficiency. Going to Slide 21, FY '25 outlook. First half of FY '25 will be dedicated to the investment in sales and marketing to drive software adoption. The second half -- we will have greater profitability from improved pricing and productivity gains. Our target is to achieve strong revenue growth, while remaining EBITDA and cash flow positive. Thank you for your attention today. We will welcome any questions. Do we have any questions, Reena?

Not at the moment. [Operator Instructions] Not at the moment, German.

Let's wait a few minutes.

[Operator Instructions] Let's wait another couple of minutes, German. Okay. It appears, there's no questions, German. So...

So thank you, everybody, for making the time this morning for our FY '24 full year results presentation. We remain committed to deliver the best results possible. Thank you very much.

Thank you.