Induction Healthcare Group - Secured outlook
On a pro forma basis, Induction Healthcare’s FY22 results were in line with our forecasts and market consensus, with revenues up 8x y-o-y to £12.1m and a move to adjusted EBITDA break-even. Contract renewals for Attend Anywhere with the NHS at the end of FY22 saw higher retention rates than management expected, as well as some increases in contract value and length. These improvements drove an increase in the group’s annual recurring revenue (ARR) to £13.5m and help de-risk its recurring revenues moving forward as most were signed on a two- or three-year term. We believe the share price does not factor in this robust revenue visibility, with the group trading at an average 57% discount to its healthcare technology peers on EV/sales across FY23 and FY24.
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