Media Release: Global Health Ltd Set To Deliver Stellar Results & Capitalises On COVID-19 Environment
Expected FY20 Financial Highlights (Subject to audit)
- Revenue up 12%
- Positive EBITDA
- Borrowings reduced by 45% to $600K
- New Contracts for FY21 delivery up 50% on prior period
Global Health Limited (ASX: GLH) (“Global Health” or “Company”) is pleased to provide its Business Update for the Financial Year 2019-2020, the impact of COVID on operations and the forward outlook.
Whilst the impact of COVID-19 has been unprecedented in terms of its economic and social impact in Australia, and indeed throughout the world, Global Health has successfully adjusted and navigated through these changed conditions.
Global Health staff have adapted seamlessly to a remote working environment as the Company’s infrastructure had been optimised for support of remote workforces prior to the pandemic. Over 90% of our staff have been successfully working at home since March 17th and have continued customer support, product development and business development activities through the COVID-19 disruption.
Our staff have maintained a high level of support for all our platforms and responded quickly to our customers’ needs. This change in the work environment will continue until the public health regulations of the Victorian Government are relaxed. A major benefit to Global Health and its staff has been establishing a flexible work environment which will likely continue into the post lockdown future.
Several projects that were due to be delivered this financial year have slipped to the next financial year due to social isolation. Despite these slippages, revenue is forecast to grow by an estimated 12% year-on-year due to the increase in customer recurring and expansion revenue. With expenses remaining flat, the Company expects to be EBITDA positive for the 12 months to 30-June 2020.
Over the past 7 years, Global Health has invested over $7 million in R&D with the goal of Connected Health Records (CHR) to improve the productivity and efficiency for healthcare delivery organisations, streamline the patient’s journey through the healthcare system, and improve patient outcomes through more collaboration and connectivity between patients and their care teams. This important investment is bearing significant fruit for the Company.
COVID-19-led increase in demand for Global Health Platforms
Global Health has seen a rapid increase in demand since COVID-19 broke out.
In commenting on the increase in demand, Mathew Cherian, CEO of Global Health, said:
“We have just been amazed at how digitisation in the healthcare sector is now top of mind. Demand and interest have never been higher.
“We thought the disruption in health — more telehealth, digital engagement and collaboration between providers and consumers – would occur progressively over a five to seven year timeframe, but it’s looking like five to seven months now.
“It’s a big positive that COVID has forced us to rapidly change a system that’s traditionally been slow to change. Healthcare is information intensive and needs to be very defensive because incomplete information has often led to poor decisions which can have a devastating impact on people’s lives.
“COVID has accelerated the pace of disruption in health and companies like Global Health are experiencing strong demand as a result.”
Global Health sales pipeline is strong with several significant active opportunities expected in the first half or 2020-2021.
The Company’s MasterCare Client Management System for Mental Health is experiencing particularly strong demand as the incidence of people living with Mental Health issues has increased due to the pandemic, the severe bushfires and the drought.
In parallel as a direct result of COVID-19, demand for our SaaS Connected Health Records platforms is growing; in particular our HotHealth digital doorway or patient engagement hub, Lifecard Personal Health Record and ReferralNet Secure Messaging platform for connected care has increased as the healthcare eco-system embraces digital health.
With several committed projects due for delivery over the next 12 months, a healthy sales pipeline and predictable cash flow, Global Health is well placed to maintain and grow its operations despite the COVID-19 pandemic. Many of these changes, such as telehealth will be long term structural changes to Australia’s healthcare environment and significantly benefit Global Health and its customers.
About Global Health Limited
Global Health (ASX: GLH) is a leading provider of Digital Health solutions to the Australasian Healthcare Industry. Innovation, consumer-centricity and connectivity are the foundations of the Company’s vision of ‘Connecting Clinicians and Consumers.’
Global Health helps streamline the delivery of healthcare services and provide better health outcomes across various health sectors, including acute and community settings.
Global Health offers a range of solutions to help health businesses be more efficient and deliver excellent patient care. These include: electronic medical records, patient administration systems, practice management systems, clinical records, secure message exchange, patient engagement platforms and consumer health records.
Find out more about Global Health Solution’s at www.global-health.com or visit any of the product websites.
For further information please contact:
Rod North, Managing Director,
Bourse Communications Pty Ltd
T: (03) 9510 8309, M: 0408 670 706,
E: [email protected]