Australian digital health company 1st Group’s (ASX: 1ST) telehealth subsidiary, Visionflex, has clinched a significant deal with the Western Australia Primary Health Alliance (WAPHA). This marks Visionflex’s second purchase order from WAPHA for an additional 75 Visionflex Clinical Telehealth Carts, valued at over $1.1 million. The initial order, placed in August 2023, consisted of the same number of carts.
The initial purchase, worth $1.1 million, aimed to deploy Visionflex’s clinical telehealth technology across 75 Commonwealth-funded Residential Aged Care Facilities (RACF) in Western Australia. These mobile carts allow doctors and carers to use Visionflex’s ProEX Virtual Care Software, facilitating connectivity between healthcare professionals and RACF residents.
In total, the purchase orders from WAPHA represent over $2.2 million in 1st Group’s revenue for FY24, with $1.76 million already received. The remaining $440,000 is expected upon the final delivery of the Visionflex Clinical Telehealth Carts in H2 FY24.
1ST Group Limited CEO, Joshua Mundey, said, “We are extremely pleased that our Visionflex product has been delivering value and efficiencies to the WA community in their transition to virtual and hybrid healthcare. This order is another key milestone for our organisation, demonstrating our value as innovative and trusted virtual care leaders. As Visionflex continues to provide value through its virtual care products, we expect to capture greater market share in existing segments and to drive significant growth in new segments.”
Apart from the immediate revenue, Visionflex will also enjoy recurring income from software licensing and support services.
Launched in 2014, VisionFlex is a telehealth provider. Its high-definition video-conferencing software and user-friendly hardware solutions transform desktops into diagnostic tools. The all-in-one telehealth cart package includes a medical-grade computer and a maneuverable medical cart, along with the option to include a ProEX Desktop with additional medical devices.
1st Group acquired Visionflex for $2.5 million in June 2022, ushering in new revenue streams and investment capital to reshape the landscape of healthcare services. However, the Company faced challenges in the preceding year when it received a qualified audit. Accounts payable prior to the merger absorbed the intended investment capital. Consequently, CEO and Managing Director Klaus Bartosch resigned on October 4, 2022.
1st Group initiated a leadership renewal process, with Mundey taking the helm as CEO. Michael Kafruni assumed the role of Chief Operating Officer in August 2023, and the Company is casting around for a new CFO.
In FY23, Visionflex’s revenue surged to $4.4 million, up from FY22’s $2.7 million, while losses decreased from $5.3 million to $3.8 million. The Company concluded the year with $1.4 million in cash, down from $2 million.
Visionflex has already secured $3.1 million in orders in H1 FY24, surpassing the total revenue of $2.6 million achieved in FY23. This achievement underscores the rapid adoption of its software and hardware solutions across Australia and is perhaps even a metaphorical pat on the back for its new CEO.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.