Physitrack PLC - Interim Report: January - March 2024

LONDON, GB / ACCESSWIRE / May 14, 2024 / Physitrack (STO:PTRK) We are pleased to report significant growth in revenue and EBITDA, as well as two consecutive quarters of positive cash flow generation. This reflects our continued success in expanding our market presence, optimising operational efficiency, and delivering value to our stakeholders.

Quarter ended - Jan - Mar 2024

• Revenue increased by 10 per cent against a strong comparator to generate total sales of EUR 4.1m (EUR 3.7m). On an organic basis revenue grew by 10 per cent. This organic growth was achieved in both the Lifecare (10 per cent) and Wellness (11 per cent) divisions.
• Subscription revenue increased 23% (€618k) to €3.3m and now makes up 80 per cent of total group revenue, a significant increase from the prior year's comparative, which was 72 per cent.
• Adjusted EBITDA of EUR 1.1m (EUR 0.9m) was generated resulting in an Adjusted EBITDA margin of 26 per cent (25 per cent).
• Adjusted operating profit of EUR 0.1m (EUR 0.1m) was generated resulting in a margin of 1 per cent (3 per cent).
• Adjusted ordinary and diluted profit per share totalled EUR 0.00 (EUR 0.00).
• Cashflow generated from operations before the payment of adjusting items equalled EUR 1.0m (EUR 0.7m).
• Free cash flow for the quarter was a net inflow of EUR 0.1m (outflow EUR 0.4m).

Operational highlights

• The Group is delighted to confirm the extension of the current GBP 5m revolving credit facility for an additional five years (now expiring in May 2029), providing the Group with additional cash resources to support its ambitious strategic growth plans alongside demonstrating Santander UK's commitment to the long term success of the business.
• We have been positively surprised with the rapid success of the technological enhancements across the Group, underpinned by AI, that we rolled out in the last two quarters and are excited by what further innovation and revenue opportunities AI-powered tools can provide via our additional feature rollouts planned this year.
• Champion Health secured significant contracts during the quarter, including the Cabinet Office, Network Rail and ACCA. Champion Health has a strong sales pipeline, and these agreements support the continued growth of the Wellness division.
• We are pleased to announce that Champion Health's new version successfully launched mid-April 2024 and thanks to this, localisation into eight languages, including German, French, Swedish, Spanish and Polish is well underway. We expect rollouts of these localised versions starting Q3, 2024.
• We are excited to share that our Lifecare user base has increased by 19 per cent from an average of 54,735 user licences at 31 March 2023 to an average of 65,283 user licences at 31 March 2024.
• Following a review of our business lines - including where it is now within its lifecycle, what size it is, combined with an analysis of our total addressable market and our ability to capture it with our products, people and go-to-market methodology, senior management have revised their growth financial target. The Growth target will now be that Physitrack aims to achieve a doubling of revenue within the medium term, replacing the previous target set in 2021 that targeted an annual organic sales growth exceeding 30 per cent in the medium term).

Henrik Molin, Co-founder and CEO of Physitrack PLC, commented: