Global Health Ltd (ASX:GLH) remains under the radar to many investors, with the company's focus as a provider of e-health solutions.
The company supports the business, clinical and operational needs of healthcare providers to manage chronic diseases and health promotion programs.
In a nutshell - Global Health replaces the need for paper-based processes with electronic systems.
Global Health derives revenue through the sale of software annual subscriptions and product-related professional services to these sectors.
This annuity style income has delivered the company its fifth consecutive year of profit.
Key financials
Global Health's key outcomes for financial year 2017 include revenue growth of 98% to $10.3 million, and net profit after tax climbing to $1.9 million.
Earnings per share were $0.0581, and importantly for retail investors, dividends for the period totalled $0.02.
Considering Global Health is trading at $0.38, the dividend yield is a touch over 5%.
In the five years to the end of June 2017, the share price of Global Health has provided a return in excess of 49% CAGR (compound annual growth rate) inclusive of dividends.
Directors and management currently hold 58.8% of the stock, and are therefore highly leveraged to drive the financial success of the company.
Scalability
Already over 3000 healthcare organisations use Global Health applications in hospitals, community and chronic disease health centres, specialists, general practice and allied health.
The coverage across the Australian healthcare industry is estimated at 12,000 individual healthcare providers, and Global Health has outlined the scalability potential as it is expected to grow at circa 1000 providers per annum.
However, only one third of these are paying subscribers when they come on board.
One of the key drivers for revenue growth in the immediate future relies on the successful monetisation of these freemium subscribers.
By providing improved business productivity and patient outcomes, the goal is to increase the average revenue per customers.
This will be achieved through add-on applications and monetisation of interactions between providers and their clients.
Tapping Asia
A dedicated General Manager for business development across the ASEAN Region has commenced to develop new overseas opportunities for this suite of "mobile-first", cloud applications to "Connect Clinicians and Consumers."
With over 625 million people in the ASEAN Region and a rapidly growing middle class the company believes that its proven products can help improve the healthcare markets in these economies.
The last 12 months has seen market demand for addressing the spiralling costs of healthcare increase substantially.
Global Health's balance sheet has been strengthened after five years of profitable operations, enabling the company to increase its investment over the last nine months in:
- Key sales, marketing and development personnel that have been hired;
- New mobile applications and marketplace platforms; and
- Expanding reach to the fast developing healthcare market in the ASEAN Region.
These investments will maximise the opportunity to build a genuine global business of scale.