Fund Manager Summary
The fund managers believe that Alcidion Group Ltd presents a significant opportunity for investors, especially as they anticipate a stronger performance in the first half of 2024. In their opinion, the company has confirmed $35m+ in contracted revenue for FY24, contributing to a total contracted revenue of $125m. Despite a recent 24% decline in share price, attributed to investor impatience regarding new UK healthcare contracts, the fund managers argue that the current market capitalization of $70m and net cash of $8m suggest that the recent price action may be overly pessimistic. With a solid revenue outlook and a history of strong performance, the fund managers view Alcidion as a compelling investment opportunity.
Source: Trading View
Commentary From The Managers
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Salter Brothers
16 Sept 2025
$0.09
Summary
- Alcidion delivers an enterprise health platform centered on the Miya Precision solution, enhancing clinical data aggregation and decision support.
- Salter Brothers initiated a position in November 2023 at an average entry price of $0.055, with Alcidion being the top contributor for the SB2 Fund in FY25.
- FY25 saw a 10% revenue increase to $40.8m, with underlying EBITDA turning positive at $5.1m, an improvement of $8.5m from FY24.
- The company ended FY25 with a strong cash position of $17.7m and no debt.
- Entering FY26, Alcidion has $34.0m of contracted and renewal revenue already secured, its best starting position ever.
- Historically, Alcidion adds an average of $10.6m in-period revenue annually, indicating potential for growth.
- Aligned with public sector procurement cycles, Alcidion has a credible pathway for incremental wins beyond the contracted revenue.
- Alcidion’s strategic dual positioning as both a modular platform and a comprehensive solution broadens its market reach and accommodates diverse budgets.
- With recurring revenue growth, record contract momentum, and restored profitability, Alcidion is well-positioned for continued growth through FY26.
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Commentary From The Managers
Salter Brothers
16 Sept 2025
$0.09
- Alcidion delivers an enterprise health platform centered on the Miya Precision solution, enhancing clinical data aggregation and decision support.
- Salter Brothers initiated a position in November 2023 at an average entry price of $0.055, with Alcidion being the top contributor for the SB2 Fund in FY25.
- FY25 saw a 10% revenue increase to $40.8m, with underlying EBITDA turning positive at $5.1m, an improvement of $8.5m from FY24.
- The company ended FY25 with a strong cash position of $17.7m and no debt.
- Entering FY26, Alcidion has $34.0m of contracted and renewal revenue already secured, its best starting position ever.
- Historically, Alcidion adds an average of $10.6m in-period revenue annually, indicating potential for growth.
- Aligned with public sector procurement cycles, Alcidion has a credible pathway for incremental wins beyond the contracted revenue.
- Alcidion’s strategic dual positioning as both a modular platform and a comprehensive solution broadens its market reach and accommodates diverse budgets.
- With recurring revenue growth, record contract momentum, and restored profitability, Alcidion is well-positioned for continued growth through FY26.
Summary
Tamim Funds Management
4 Sept 2025
$0.09
- Alcidion Group (ASX: ALC) is a healthcare workflow software provider focusing on hospitals in the UK and Australia.
- The company enhances efficiency, safety, and compliance in patient care delivery for clinicians and administrators.
- Recent NHS contract wins in the UK are driving a significant revenue inflection.
- In FY25, Alcidion reported positive operating cash flow of $7.4M in Q4 and annual cash receipts of $50.9M.
- Total new contract wins (TCV) reached $73.8M, indicating strong demand for its services.
- Guidance for EBITDA to exceed $4.5M was reaffirmed, showcasing an improving bottom-line trend.
- Tamim Funds Management initiated a position at 8 cents, with the stock closing July at 11.5 cents.
- Alcidion’s strong product-market fit and international growth potential position it as a target for larger healthcare technology platforms or private equity.
Summary
Cyan Investment Management
31 Aug 2025
$0.09
- Cyan Investment Management updates their investment thesis on Alcidion Group Ltd (ALC).
- Alcidion delivered a strong FY25 result, which was anticipated.
- Management highlighted material opportunities across all major operational regions.
- Despite recent price movements, Cyan remains positive on the company’s fundamentals.
- The company showed solid underlying cashflow and profitability.
- Recent share price weakness is linked to the absence of a defined FY26 forecast.
- ALC's share price has increased 56% year-to-date in 2025.
Summary
Salter Brothers
28 Aug 2025
$0.10
- Salter Brothers notes strong momentum for Alcidion Group Ltd (ALC) throughout FY25.
- Achieved record financial and operational results, generating $5.8 million in positive operating cash flow for the year.
- Total new TCV sales reached $73.8 million, more than doubling the prior year by 109%.
- Key contract wins include agreements with Hume, NALHN, NT Health, and North Cumbria, contributing $39 million TCV over 10 years.
- These expansions highlight the increasing adoption and value of Alcidion’s platform in the healthcare sector.
- As of 30 June, the company holds a strong cash position of $17.7 million.
- Confident in delivering FY25 EBITDA greater than $4.5 million.
- With a growing recurring revenue base and ongoing deployment efforts, Alcidion is well positioned for continued growth into FY26.
Summary
Cyan Investment Management
31 July 2025
$0.12
- Cyan Investment Management notes that Alcidion Group (ALC +15%) achieved a record-breaking quarter with the highest-ever quarterly operating cash flow of $7.4m.
- Full-year cash flow reached $5.8m, contributing to a strong closing cash balance of $17m.
- The company has reconfirmed guidance for FY25 EBITDA exceeding $4.5m.
- ALC secured new sales in FY25 totaling $73.8m in total contract value (TCV), marking a 109% increase year-on-year.
- This growth positions the business favorably for an exciting FY26 and beyond.
- The investment outlook is positive as ALC’s cost base is relatively fixed, allowing new contract wins to significantly boost the bottom line.
- With a market cap around $150m, there is considerable upside potential compared to competitors in the healthcare IT space.
Summary
Tamim Funds Management
31 July 2025
$0.12
- Tamim Funds Management continues to hold their position in Alcidion Group (ASX: ALC) due to strong financial performance.
- Q4 FY25 reported a positive operating cashflow of $7.4M.
- Record quarterly cash receipts of $22.4M.
- FY25 showed a positive operating cashflow of $5.8M, marking a $12.9M improvement on the previous corresponding period (PCP).
- Annual receipts reached $50.9M for FY25.
- New total contract value (TCV) sales for FY25 amounted to $73.8M, reflecting a 109% increase on PCP.
- The company maintains a cash balance of $17.7M with no debt as of 30 June 2025.
- FY25 EBITDA guidance has been reaffirmed to exceed $4.5M.
- Alcidion is a workflow management software provider primarily serving hospitals in the UK and Australia.
- Recent large contracts with UK hospitals are expected to drive revenue growth in the near term.
- Tamim Funds Management acquired shares at 8 cents, with the stock closing the month at 11.5 cents.
- There is a belief that Alcidion may soon attract the attention of potential acquirers.
Summary
Cyan Investment Management
30 June 2025
$0.10
- Cyan Investment Management continues to hold its position in Alcidion Group Ltd.
- Alcidion's share price increased by 16.0% following an upgrade in FY25 EBITDA guidance.
- The new EBITDA guidance has been upgraded from greater than $3m to $4.5m.
- Earlier market expectations were for a breakeven result, making the recent improvements notable.
- An outstanding FY25 result is anticipated in August.
- There is a bullish outlook into FY26 due to current positive momentum.
- Alcidion has a significant pipeline of new contracts and contract extensions.
Summary
Cyan Investment Management
2 June 2025
$0.09
- Alcidion Group Ltd (ALC) is a health-tech company focused on clinical decision-making software for hospitals in Australia and the UK.
- Dean highlights its importance in enhancing hospital efficiency through the organization of complex medical data.
- Despite earnings volatility linked to large contract cycles, Alcidion is gaining traction with several smaller, recurring contracts.
- Cyan Investment Management continues to hold due to Alcidion's defensively positioned business model.
- The company has a strong financial position with net cash and is showing signs of improving profitability.
- There is potential for a significant re-rating of the company's value in the market.
Summary
Cyan Investment Management
30 Apr 2025
$0.09
- Cyan Investment Management continues to hold a long-term position in Alcidion Group Ltd.
- The company reported strong March quarter results, highlighting a positive operating cash flow of $2.5m.
- Alcidion provided optimistic commentary regarding a significant 4th quarter.
- There has been an upgrade to FY25 guidance from EBITDA break-even to EBITDA +$3m.
- Cyan was surprised by the 4.9% share price increase given the substantial underlying growth.
- The firm anticipates continued positive communication from Alcidion to enhance shareholder value.
Summary
Cyan Investment Management
28 Feb 2025
$0.09
- Cyan Investment Management highlights significant performance from Alcidion (ALC +30%) following the announcement of a major contract with North Cumbria Hospital network in the UK.
- The contract is valued at A$37.5m over 10 years, with $8-9m expected to be recognized in the current financial year.
- This contract positions ALC to achieve EBITDA and cash-flow positive results for FY25.
- The company also secured its first contract in Wales, valued at $5.5m.
- Cyan Investment Management believes the recent price action is justified due to the significance of the contracts won by ALC.
- Alcidion is well-funded, with $7.7m in cash as of 31 December 2024.
- A strong billing cycle in this half is expected to improve ALC's cash position significantly by 30 June 2025.
- Overall, Cyan Investment Management sees a lot of reasons for optimism regarding Alcidion's growth and prospects.
Summary
Salter Brothers
28 Feb 2025
$0.09
- Alcidion Group LTD (ALC) experienced a significant rise in February following the confirmation of their North Cumbria contract.
- The commercial terms of the contract are favourable, with projected revenues of $8–9 million to be recognised in FY25.
- This brings Alcidion’s contracted revenue for the year to $39.5 million, exceeding its breakeven target of approximately $36 million.
- Salter Brothers notes the release of Alcidion's first-half results which indicates a strong cash position.
- The company also shows a promising pipeline of opportunities moving forward.
- Salter Brothers continues to hold their position in Alcidion based on these developments.
Summary
Cyan Investment Management
31 Jan 2025
$0.07
- Cyan Investment Management continues to hold a positive view on Alcidion Group Ltd.
- Recent quarterly update revealed $13.1m in new contract wins, exceeding previous expectations.
- Two significant contracts of $4.5m and $3.7m were highlighted during the period.
- Alcidion further secured a new contract worth $5-$7m in Wales, enhancing its presence in the UK health system.
- The company's growth trajectory is supported by its increasing contract wins.
- Cyan sees potential for further expansion in international markets.
Summary
Salter Brothers
31 Jan 2025
$0.07
- Strong Performance: Alcidion Group Ltd delivered a strong performance throughout January, both pre- and post-Q2 FY2024 report.
- Substantial Cash Reserves: The company holds significant cash reserves of $7.7 million.
- Approaching Breakeven: FY2025 contracted revenue is nearing its breakeven point, indicating a positive turnaround story.
- Market Sentiment: Investor sentiment remains bullish ahead of updates on key contracts.
- North Cumbria EPR Contract: Anticipation surrounds the upcoming update on the North Cumbria electronic patient record (EPR) contract.
- Sales Pipeline: Investors are eager for further updates on Alcidion's current sales pipeline.
Summary
Cyan Investment Management
30 Nov 2024
$0.06
- Cyan Investment Management has updated its investment thesis on Alcidion Group Ltd (ALC).
- Alcidion experienced a 20% increase in stock value amidst positive developments.
- The company secured two new contracts: a $4.5m contract with Northern Adelaide Local Health Network and a $3.7m contract with Peninsula Health in Victoria.
- Despite the new contracts, there was an expectation for the stock to rise even higher based on the positive news.
- The recurring revenue for Alcidion has reached $30m per annum.
- Considering its modest market capitalization of approximately $80m and an EV/Sales ratio of 2.5x, there is significant potential for upside.
- The investment thesis reflects ongoing interest in the medical software sector.
Summary
Cyan Investment Management
30 Sept 2024
$0.06
- Alcidion Group Ltd (ALC) experienced a significant underperformance, declining by 14%.
- Cyan Investment Management notes two recent contract wins for Alcidion:
- Preferred Supplier status to North Cumbria UK, a 10-year deal worth A$30-40m.
- A 5-year contract with Hume Rural Health in Victoria valued at A$4m.
- Concerns regarding a seasonally weak Q1 cashflow report are expected at the end of October, possibly affecting investor sentiment.
- Cyan Investment Management anticipates that recent cost-cutting measures will have a materially positive effect on Alcidion's cost base and reported numbers.
Summary
Salter Brothers
30 Sept 2024
$0.06
- Alcidion Group Ltd (ALC) saw a share price decline in September, attributed to the absence of expected contract announcements.
- Despite the current challenges, Salter Brothers remains confident in the likelihood of new contract wins.
- Alcidion reported a notable financial performance, particularly in the second half of FY24, with positive operating cashflow of $4.3m for H2.
- The company achieved this improvement through proactive cost reductions, cutting approximately $6.4m in annualised expenses.
- Salter Brothers views Alcidion as a core position in the portfolio, seeing recent price weakness as an opportunity.
- The Manager has confidence that strong cash flow and operational efficiencies will drive long-term value for investors.
Summary
Cyan Investment Management
31 July 2024
$0.08
- Alcidion Group Ltd (ALC) secured a major UK contract as their Preferred EPR Supplier to North Cumbria, valued at A$30-40m over 10 years.
- Additionally, a 5-year, A$4m deal was announced with Hume Rural Health in Victoria.
- The new contracts offer high margins and recurring long-term revenues, enhancing financial stability.
- No additional staff will be needed for the North Cumbria contract, leading to a large portion of revenues impacting the bottom line positively.
- Alcidion has shown strong positive cash flow of +$5.6m in the quarter.
- Cyan Investment Management anticipates more contract wins due to a $200m+ tender pipeline.
- The company is expected to experience significant potential for price appreciation moving forward.
Summary
Salter Brothers
31 July 2024
$0.08
- Alcidion (ALC) achieved 2 significant new customer wins this month.
- First, a long-term partnership with Hume Rural Health Alliance (HRHA) for the Miya Precision platform, valued at approximately $4m over five years.
- This contract aims to enhance patient flow and virtual care in the region.
- Second, selected as the preferred supplier for North Cumbria Integrated Care NHS Foundation Trust’s new Electronic Patient Record (EPR) system, a potential 10-year contract valued between A$30-40 million.
- These developments coupled with positive cash flow results and record quarterly cash receipts highlight Alcidion's strong market position and growth potential.
- Salter Brothers continues to hold their investment based on these positive developments.
Summary
Salter Brothers
30 June 2024
$0.05
- Alcidion Group Ltd (ALC) experienced a price retraction due to a lack of news flow.
- Despite this, Salter Brothers remains optimistic about Alcidion’s future.
- Anticipation of further contract wins in the near term.
- Continual market and competitor assessment supports belief in the company’s growth prospects in the Australian and UK markets.
Summary
Cyan Investment Management
29 Feb 2024
$0.05
- Cyan Investment Management updates its investment thesis on Alcidion Group Ltd (ALC) amid ongoing challenges.
- ALC has faced delays in winning investor confidence due to postponed contract awards in the UK NHS system.
- Management has reduced the cost-base following a significant cash outflow in the first half of 2024.
- Despite frustrations, Cyan Investment Management believes the company will achieve new contract success within the next 6 months.
- ALC is targeting a share of its $200m tender pipeline to bolster growth.
- Recently, ALC announced a $3.4m contract extension with Dartford and Gravesham NHS Trust.
Summary
Salter Brothers
28 Feb 2024
$0.05
- Alcidion Group Ltd (ALC) announced their 1H24 results to the market.
- Renewed and won key contracts during the period.
- Outlook includes major cost reduction programs totaling $6.4m to be completed in 2H24.
- EPR contracts are pivotal for anticipated revenue growth beyond ongoing business operations.
- Currently tendering for several large EPR contracts with a total aggregate contract value of $200m+.
- The Manager is optimistic about the business's direction.
- Salter Brothers has recently become a substantial shareholder in Alcidion Group Ltd.
Summary
Cyan Investment Management
31 Jan 2024
$0.06
- Cyan Investment Management highlights that Alcidion Group Ltd (ALC) recently detracted significantly from the Fund’s performance, dropping 24%.
- Investors have shown impatience awaiting new healthcare contracts in the UK.
- The first half of the calendar year is typically strong for ALC.
- Alcidion has confirmed over $35m in contracted revenue for FY24, contributing to total contracted revenue of $125m.
- With $8m in net cash and a market capitalisation of $70m, the outlook appears positive.
- Cyan believes that the recent price action seems overly pessimistic, especially with expectations for a stronger second half of the year.
- Cyan Investment Management continues to hold their position in ALC.
Summary
Elston Asset Management
31 Dec 2023
$0.08
- Delays to the NHS Frontline Digitisation program have impacted Alcidion significantly.
- The NHS program presents a tremendous opportunity for Alcidion as trusts seek to improve hospital efficiency.
- Despite the potential, ongoing procurement delays are hindering progress.
- Alcidion has prepared for growth, but this growth has yet to materialise.
- The company's balance sheet appears vulnerable if NHS program delays persist.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While Alcidion Group Ltd seems to be weathering a storm of investor impatience, the upcoming healthcare contracts and strong revenue forecasts suggest the current market sentiment may be overly pessimistic, hinting at a potential turnaround on the horizon."
Last Updated: 16 Sept 2025
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Frequently Asked Questions
Who is investing in Alcidion Group Ltd (ASX:ALC)?
Fund managers including Cyan Investment Management, Salter Brothers, Elston Asset Management and Tamim Funds Management have invested in Alcidion Group Ltd (ASX:ALC).
Why do fund managers invest in Alcidion Group Ltd?
Fund managers are investing in Alcidion Group Ltd due to its strong contracted revenue outlook, with over $35 million expected in FY24 and a total of $125 million. Despite recent share price declines, the company maintains a solid cash position of $8 million and has historically performed well in the first half of the year. This combination of factors suggests that the market may have reacted too negatively, presenting an attractive investment opportunity.
What happened to Alcidion Group Ltd (ASX:ALC)?
Fund managers are investing in Alcidion Group Ltd due to its impressive financial performance and growth potential in the healthcare IT sector. In FY25, Alcidion achieved record operating cash flow of $5.8 million and secured new contract wins totaling $73.8 million, a 109% increase year-on-year. The company has a strong cash position of $17.7 million and is debt-free, positioning it for continued growth. Its flagship Miya Precision platform enhances clinical efficiency and interoperability, making it attractive to hospitals in the UK and Australia. With a solid pipeline of contracted revenue and a credible pathway for further expansion, Alcidion is seen as a promising investment with significant upside potential.