Digital health solutions company Global Health (ASX: GLH) has achieved a major milestone for shareholders, inflecting into positive operating cashflow for the first time and just 18 months after major shareholder Mathew Cherian took over leadership of the company as Managing Director.
For the quarter ended 30 June 2024, Global Health reported $3.0 million in customer receipts which generated $419k in positive operating cash flow. This took their H2 FY24 operating cash surplus to $199k which is a substantial turnaround from the $3.3 million cash burn logged by Global Health for H1 FY23, prior to Cherian taking the reins of Global Health following the swift exit of Michael Davies in November 2023.
Global Health specialises in developing and delivering digital health solutions that enhance the efficiency and effectiveness of healthcare providers. The company’s flagship product, MasterCare, is a comprehensive electronic health record (EHR) system that supports various healthcare services, from initial patient assessment through to rehabilitation and recovery.
MasterCare ensures the secure sharing of sensitive clinical information and provides robust support for mental health services through its clinical and administrative systems.
Cherian, who is the original founder of Global Health, immediately turned his attention to streamlining the Company’s organisation structure while putting in place an experienced team to drive local and international expansion.
18 months on from his return to the helm, Global Health is cash flow positive.
The June quarter saw significant progress in the implementation of MasterCare at the Latrobe Community Health Service (LCHS). This project involved transferring one terabyte of data from previous systems and configuring and training over 800 end users. LCHS successfully transitioned to MasterCare on 1 July, marking a significant milestone for Global Health.
Additionally, the company re-commenced the re-platforming of its Provider Systems to the composable SaaS architecture of MasterCare Plus, the successor to its on-premises applications. This re-platforming includes integrating the Digital Front Door with both on-premises and SaaS platforms, enhancing the accessibility and functionality of Global Health’s offerings.
Furthermore, Global Health successfully transitioned its Data Centre from Macquarie Telecom to Microsoft Azure which is expected to create better operating efficiencies for Global Health and its customers.
Following the data transition, The Company also published two MasterCare Plus packages for Referral Management and Secure Messaging on the Microsoft Global Marketplace, with plans to release further bundles progressively.
Looking ahead, Global Health remains optimistic about its growth prospects. The restructuring and refocusing of operations are expected to yield continued benefits in FY25. The Company has decreased their R&D expenditure down to 30% of revenue and is aiming to reduce it towards 20% in line with industry standards, while not compromising its innovation or new product development.
Global Health has flagged plans to incorporate artificial intelligence into their platforms and release a Data Lake for enhanced business intelligence utilising Power BI.
As of 30 June 2024, the Company had $2.1 million of cash on hand.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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