In times of illness, the last thing you would want to do is to venture out to a clinic packed with other fellow sick individuals. Plus, the idea of enduring lengthy queues for a doctor’s appointment won’t bring any good for your recovery.
With technology integrated into the medical field, patients now have greater control over accessing healthcare, such as through telehealth. They can easily book appointments online and have virtual consultations with doctors via video calls or chats, especially beneficial for places like aged care where at-risk individuals should avoid the risk of contagious illnesses in crowded waiting rooms.
Aligning with the current demand, healthcare technology provider 1ST Group (ASX: 1ST) has received an initial purchase order worth $1.1 million from WA Primary Health Alliance (WAPHA). Signed under its subsidiary Visionflex, the purchase consists of an initial 75 Clinical Telehealth Cart, deployed to connect various health professionals to 75 Commonwealth-funded Residential Aged Care Facilities (RACF) in Western Australia and meeting telehealth needs for vulnerable populations in the area.
1ST has received $660k from the total purchase value of $1.1m. The remaining $440k will be received upon final installation of the Clinical Telehealth Carts in H1 FY24. In addition to the upfront revenue, Visionflex will receive annual recurring revenue for support and software licensing.
Commenting on the purchase order, 1ST Group CEO Joshua Mundey said “Our ongoing selection by large health providers right across Australia represents a significant milestone for the company. We continue to demonstrate our value as innovative and trusted partners in the transition to virtual and hybrid healthcare.”
Mundey also expresses confidence in the possibility of expanding into larger volumes within the aged care sector. He suggests that Visionflex is in a favourable position to gain more market presence in the rapidly growing global market of hybrid health.
Subject to a successful roll out to these initial 75 RACFs in coming months, WAPHA will potentially place more orders for other RACFs in Western Australia, which are expected to materialise within FY24.
Visionflex is a clinical virtual care technology company merged with 1ST in 2022, which offers a clinical telehealth video conference system available on various devices and operating systems through its Vision platform. Visionflex also provides an array of telehealth devices, medical equipment, and software solutions that enable healthcare practitioners to conduct teleconsultations in diverse settings and grant access for diagnostic imaging to be stored within patients’ electronic health records.
In the last six months, a total of $3.3m of initial orders have been received for Visionflex’s ProEX Virtual Care Software from RACFs, Australian Primary Healthcare Networks (PHNs) and Aboriginal Health Organisations (AHOs) across New South Wales, Victoria, Western Australia, Queensland, and Tasmania.
1ST Group also operates corporate and government solutions platform GoBookings.com and online pet service marketplace PetYeti. 1ST has had more than 11,000 businesses using its products and booked over 18 million appointments since inception in 2011, working with pharmacies, private practices, vets, hospitals, corporates and Government agencies (local, state and federal).
In the quarter ending 30 June 2023, 1ST Group completed the sale of its online health services community platform MyHealth1st (MH1) to Healthshare Pty Ltd for $1.25m. The sale proceeds will be used to support the ongoing growth of Visionflex and GoBookings. The initial payment of $750k has been received, while the remainder is expected to be paid in Q1 FY24.
1ST has managed to reduce cash outflow by 64% to $165K from $459K in the previous quarter. On a half-yearly basis, net cash outflow for H2 FY23 amounted to $624k, a significant 79.4% reduction from $3.02m in H1 FY23. Visionflex remains the Group’s largest revenue contributor with $842k revenue, a 20% increase from $701k in Q3. This surpasses MH1’s revenue of $484k. MH1 will no longer be attributed to the group from next quarter onwards following its divestment.
Ending the quarter with $1.4m cash at bank, 1ST has fundings available to sustain operations for approximately the next 23 quarters.
Clara is a Business Reporter for The Sentiment.
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