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Induction Healthcare Group

LN: INHC

Market Cap£30m

Last Close 33p

Induction Healthcare is a UK-based healthcare technology company, primarily engaged in the provision of software to the UK’s secondary care market. Its products include Attend Anywhere, Zesty, Guidance, Switch and its Induction HealthStream platform. Its products are delivered over a SaaS platform.

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Investment summary

Induction Healthcare is a growing UK-based healthcare software company, aiming to provide patients with more flexible care options beyond the traditional face-to-face consultation model. Early in FY22, management acquired Attend Anywhere, which was transformative for the business, leading to revenue growth of 8x and a move to adjusted EBITDA break-even. On 11 July 2022, Induction announced a software reseller agreement with System C for Induction’s Zesty product in the UK, boosting its ability to integrate on a two-way basis with a wide variety of systems. Our forecasts indicate further growth in revenue and profitability, which should be supported by its robust cash position.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 0.1 (3.1) (3.4) (12.8) N/A N/A
2021A 1.5 (4.6) (6.0) (15.0) N/A N/A
2022E 12.1 (0.1) (1.3) (2.0) N/A N/A
2023E 17.6 1.6 0.3 0.3 110.0 N/A
Industry outlook

The NHS, Induction’s largest customer, is undergoing structural changes with the UK government aiming to streamline processes through both consolidation and digital transformation. The inefficiencies the government is trying to address, such as long wait times and the difficulty for patients to access their own patient records, have resulted in patient frustration, worsening clinical outcomes and high administrative costs. Induction’s products have a track record of improving efficiencies within the healthcare market, and its experience working with the NHS makes it well-placed to capture the opportunity.

Last updated on 28/09/2022
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Share price graph
Balance sheet
Forecast net cash (£m) 8.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (21.4) (32.7) (35.9)
Relative* (16.2) (28.9) (32.3)
52-week high/low 65.5p/31.5p
*% relative to local index
Key management
James Balmain CEO
Guy Mitchell CFO