1st Available sees cash position almost double in FY2016 results

Australian online health services company 1^st Available Limited (ASX:1ST) has released its results for the twelve months ending 30^th June 2016.

The year can be summed up as a period of consolidation and growth for 1ST, seeing revenues jump to $2M, up from $300,000 in the prior financial year.

This was largely driven by the signing of new commercial agreements, including the full year impact of the 2015 acquisitions of GObookings, Clinic Connect and DocAppointments.

The group monthly recurring revenues increased 55% to $177k, representing an annualised recurring revenue of $2.1M, excluding variable revenue ranging between $500-750k per annum.

The old adage that cash is king still rings true today and with $6.6M on hand as of 30^th June 2016 and in zero debts 1ST finds itself in a strong position financially.

This is almost double the cash position of the previous year of $3.4M.

There is no guarantee however that these results will continue for the company and its shareholders so please seek professional financial advice before making any investment decision.

Part of the strong cash position was due to two separate capital raisings during the financial year of a $1.2M placement in November, followed by a placement and non-renounceable rights issue in June for $6.35M.

New sales revenues and operational efficiencies have seen the average monthly cash burn improve over the last four quarters from $489k to $254k:

However, operating losses before non-recurring and non-cash expenses was $2.7M, a yearly increase of 43%.

The increase in expenses was primarily due to higher employee benefits as a result of consolidating activities and business acquisitions ($1.3M), operational operations and administration expenses ($1M), and initial marketing and advertising costs ($0.2M).

Non-cash items were impacted by $1.1M from impaired assets that were written off, historical technology capitalisation in the Private Practice Cash Generating Unit. A further $1.5M was lost due to depreciation and amortisation expenses.

The year also saw the launch of a number of new products occurred towards the back end of the year, such as Self Check0In Apps, Kiosks, Patient Clipboard Apps, Recalls and Feedback Apps. These new products are designed to drive additional revenues from both existing and new clients in FY2017.

1ST has kicked off FY2017 with the acquisition of online appointment booking group OzDocsOnline (subject to due0diligence), a deal which will see 1ST expand its product offering for GPs whilst also allowing for greater consumer engagement and cross selling opportunities.

Additionally, 1ST has expanded into the pet-care market through a distribution partnership deal with the Australian Veterinary Association (AVA), the exclusive three-year deal will see the promotion on 1ST’s online services and booking platform to AVA professional members.