Let's go, Kaye.
Okay. Thanks, Kate. Thank you everybody for joining. Welcome to Alcidion's presentation of the results from the second quarter of the 2022 financial year. This is our first presentation for 2022, and we really appreciate you joining the call in what is a little bit of a different week with a public holiday in the middle. During this session, Kate will provide a short presentation, and we'll have time for questions at the end. Please, if you haven't already, log any questions using the chat function in the bottom toolbar of the Zoom view. Joining us on the call is our Chief Financial Officer, Matt Gepp, and he will be available as required during the question session. I will now pass it over to Kate to go through the presentation.
Thank you very much, Kaye. Kaye would be new to many on the call. Kaye is a member of the senior leadership team heading up marketing, partnerships and investor relations. We have this year taken investor relations in-house. Our Investor Relations Manager, Kirsten, is actually on leave, but you will meet her when we next do a presentation. Thanks very much for that, Kaye. Thanks everyone for joining us. Before I start, I'd like to wish you all the best for 2022 and a very happy new year. I think I can still say that as we're in January. It has started perhaps more challengingly than we all would have hoped. The path ahead for this year looks continued to be one of adaptability and resilience, I think, in 2022.
We're very much here at Alcidion looking forward to getting stuck into it. Today, I will walk you through a short presentation that summarizes the Appendix 4C results, which were lodged this morning. I'll also give you an overview of the business update and how the performance of the second quarter in FY 2022. At the end of the call there will be an opportunity for questions, as Kaye indicated. I have already received some questions, so I'll kick off with those almost straight away, and then I'll pick the ones up that are lodged in the Q&A.
In terms of where Alcidion is at this point, we have had a very positive second quarter from both a financial perspective and very much in line with our defined strategic direction, as outlined for the business. I will come to the financial appendix results very shortly. I really wanted to highlight, very importantly, that we signed our largest ever contract in Q2, which was with Leidos, as the prime contractor for the provision of a strategically important project. To that project, Alcidion will be providing a critical component with our Miya Precision solution, which will in fact be the digital health record for a major component of health services for the Commonwealth of Australia.
While this is in fact the contract that we announced we were preferred provider for back in April 2021, we still needed to go through final contract negotiations, final scoping, approvals needed to be gone through. We're very pleased to announce that this contract has been signed, and it was in early December, and that it was larger than we originally outlined. You know, I think that's a you know very important part of the activities for Alcidion in the second quarter. In addition to that, we completed another very strategic component of our plan, and that was the successful acquisition of Silverlink. As indicated at the time, they're one of the last remaining independent patient administration solutions that are in the U.K.
Obviously alongside that acquisition, we completed the raising of AUD 55 million in capital to fund that, very strategically important acquisition for us. Both these activities are very firmly in line with the company's strategic plan in terms of both timing and activity. I will get into discussing the financials in more detail on the next slide. Please, you know, I think it's really important for everyone to note that all indicators are progressing in the right direction for Alcidion in terms of how we've laid out the growth and maturity of the business and the plan for the business. In summary, for this quarter, we have delivered positive operating cash flow, alongside our largest ever contract win and one of our most significant and strategic acquisitions to date.
Looking here at the Q2 Appendix 4C results and some of the other commentary that we've provided in a little more detail. This was the largest quarter for new sales for Alcidion ever, and that's largely due to the Leidos Australia contract and demonstrates the growth and maturity of the company in terms of our size, the value of our contracts, and the impact that our contracts are having in terms of delivering value to customers. This continues to demonstrate the growth and maturity of Alcidion. We sold AUD 27.7 million in new contracted revenue in Q2, with AUD 6.2 million of that expecting to be able to be recognized in this financial year.
That new contract revenue comprises AUD 15.4 million in recurring revenue and AUD 12.3 million in non-recurring revenue. That's probably a larger portion of non-recurring revenue than you would have been used to seeing in recent contracts. That's due purely to the reasonable component of the Leidos contract that involves the services required to deliver and implement a program of work of this scale. They are always very well- funded, these types of programs of work that involve a number of consortium providers. The Commonwealth is funding through Leidos to deliver a significant component of the services required. That is not typically the split you would see in all our contracts.
Also very important to note that any additional staff that we bring on is fully and comprehensively covered by that funding. At the end of the second quarter, we have AUD 27.1 million in contracted revenue that we expect to be able to recognize in FY 2022. That's without any further sales being made, obviously, in the second half of the year. That's comprised of AUD 23.3 million of organic revenue and AUD 3.8 million of that total can be attributed to revenue that will come to us as a result of the acquisition of Silverlink. That's 25% increase on the prior calendar period.
Also please note that the contracted revenue, as we always indicate where we are at each quarter, only includes the revenue that we've contracted to date, and it does not include any revenue we'd expect to recognize for contracts that are currently in negotiation or yet to be finalized and sold. During the quarter, Alcidion generated positive operating cash flow of AUD 1.5 million for the quarter. The cash receipts from customers in Q2 were AUD 9.9 million, which is a 125% increase on the prior calendar period. This resulted in total cash receipts for the period of AUD 16.4 million, 52% higher than that same time the previous year.
Now obviously, a contribution to that is the Leidos contract, where we have been able to invoice some of that contract in Q2, as the project is actually underway, and we have in fact installed software. We ended the quarter with AUD 18.9 million in the bank, and that's after finalizing the acquisition of Silverlink. In terms of the operational highlights, the quarter was very significant for Alcidion, as I said at the outset, as it continued to demonstrate how we're executing against the strategic plan that we set ourselves in terms of growing and maturing the business.
As I noted, we signed our largest contract, and we're really looking forward to delivering the foundational components of that, which will be a project for what is referred to as a longitudinal health record. Then basically what that means is that we will be bringing together in our Miya Observations platform all of the data from a number of partner Australian healthcare IT partner organizations that will be collecting information for the Commonwealth to form the basis of individual healthcare records. While it's significant of course because of the size, and the importance of this is that it also is our first contract with the Commonwealth.
It demonstrates that Alcidion solutions are increasingly being seen as being able to scale and address some of the more challenging issues in healthcare of integrating data across a multitude of healthcare settings and bringing that single view of a patient's interaction with the healthcare system in an easy-to-use and easily accessible format for our doctors and nurses and clinicians. It also sets up opportunity for future conversations in markets that are aligned to the direct hospital healthcare system, where you know, typically a large number of our contracts have been to date. This contract is significant in size and duration, creating further recurring revenue for Alcidion of course, initially for six years and potentially well beyond that. It also has the possibility to increase in scope.
As I indicated at the time we made the announcement, there is options to take up Miya Observations and Assessments at the time, and that should consider it. They will be considering that in the next 12 months or so. The project's already well underway, and as I said, we will expect to recognize some revenue from that in FY 2022 if the project proceeds as expected. You know, a reasonable contribution to this year's financial result as well. Ultimately, the contract's potentially worth approximately AUD 55-odd million to Alcidion over the 15 years of its current contract term. Moving on to the acquisition of Silverlink.
Again, another significant activity for us in Q2, contributing to our electronic patient record or electronic medical record as we refer to it in Australia. The strategy for contributing to that strategy both in the short and the longer term. The acquisition provides us with core patient administration systems capability, which expands our overall product offering and positions Alcidion as being well- placed to provide ultimately a cloud-native, modern and modular alternative to the electronic patient record solutions that we see in the market today, which we believe are gonna rival some of the global incumbents. Setting up a very different opportunity and a very different, I hate to use the word narrative, but a very different offering in terms of what traditionally our healthcare systems have had available.
In addition to that, it expands the market presence for us in the U.K., to having a presence in 38 of the acute NHS trusts, and that's around a 26% presence, a presence in 26% of the trusts in the U.K. It also expands our addressable market immediately. As many of you are aware, the acquisition price was AUD 55.5 million, with a further AUD 5.6 million subject to earn-out conditions being met around the signing of new contracts. And that was funded both by an institutional placement to institutions and sophisticated investors, and then an accelerated non-renounceable rights offer to retail and other investors. All of which was concluded prior to the end of 2021. Thank you to everybody who partook in that.
Silverlink had, at the time of the acquisition, forecast that for FY 2022, noting that their financial year ends the 13th of April, they forecast annual revenue of GBP 7.8 million from existing contracts, which means that 95% of that is recurring revenue, and contributing an EBITDA of GBP 4.8 million to our forecast results. The initial announcement has been well-received by the healthcare industry and by our customers. We're certainly looking forward to further discussions with the Silverlink customers as to what Alcidion can bring to them to assist them to further their digital health ambitions. Some of those conversations have begun, and now that we're through the January Christmas period, I expect a lot more of those conversations to gather momentum.
Also, during the quarter, we signed a contract with one of the leading health services in Australia. It was a contract that we won in a competitive market. It is an extension in the sense that we already are contracted with Miya Precision at Sydney LHD and have been supporting them as they support COVID-positive patients at home. This is to extend that capability. It allows Sydney LHD to use Miya Precision across Royal Prince Alfred, but also in all remote care settings. Initially, this will be very much focused on the management of diverted patients at home, and then we will continue to add more and more cohorts on.
Of course, over the last four to six weeks, we've seen a significant increase in activity around the COVID work, and we've been working very closely with Sydney LHD and RPA Virtual to support them as they support patients at home. We also saw additional contracts signed for ExtraMed, which was the solution we acquired back in April 2021, with a three-year renewal, at NHS Derby, which is an existing Alcidion customer who use Miya Observations or also known previously as Patientrack. We had a new contract to then extend ExtraMed to their sister trust, Burton. This is important 'cause it confirms our strategy of looking at acquisitions such as this as being a foundation for providing further cross-selling opportunities into these new customer bases. Continued interest in our services capability.
It's remained consistent with a number of new contracts being signed during the quarter that are signed generally as part of the normal course of business. Looking forward, our pipeline remains strong, supported by solid contracted revenue of AUD 27.1 million already contracted, we expect to recognize this year, plus a further AUD 1.9 million scheduled renewals expected in the second half. We then obviously anticipate converting opportunities from the pipeline. That pipeline continues to grow. It's been bolstered by some further opportunities since the acquisition, albeit bear in mind that, you know, those new opportunities will take their time to work through the sales cycle. We already have a number of Miya opportunities in contract discussion phase, and they've progressed since the last quarter. We continue to pursue cross-selling opportunities for ExtraMed and into the Silverlink sites.
We have new opportunities for our Miya platform and a number of the modules. While we're seeing the size of full suite Miya deals increase, it's important to note, and really pleasing that we're seeing an increase in the number of opportunities for Miya and Miya Flow. You would expect this in the current environment post-COVID. Miya Flow, which was actually our original initial suite of modules from the Miya Precision platform, is really focused on how we efficiently move patients through the healthcare system from ambulance to ED into the health system and through elective surgeries. Most people on this call, I think, would understand that we have a two-year backlog of surgery patients, and those patients can't be treated at home.
The hospital system is going to be very focused on how it can be efficient, and the result of that is that we're seeing a lot of emerging interest in Miya and Miya Flow in the U.K. Recently, there's been some special funding put to that as opportunities, so we're continuing to focus our sales team on those activities as well. As our shareholders would probably be aware, the second half is traditionally a stronger half for new sales, notwithstanding that we had the largest sale ever in Q2, so we'd expect to see increased activity from the U.K. in the second half.
Although, you know, I think it's important to note that the healthcare system more than ever around the world is under immense pressure, and it is having an impact on the speed at which procurement progresses, and at which contracting can move. That just makes sense. We've got staff off sick in every industry. I'm hearing numbers the likes of 30%-40% isolated or unwell at any particular time, and that is probably even more challenged in the healthcare sector. You know, we just need to be aware of possible impact on timing of contracts and project progression. Not seeing any dampening of interest and enthusiasm, but certainly an impact on speed potentially. As indicated, the initial feedback from the Silverlink announcement has been very positive.
As we come out of the Christmas period, we're now engaging with a number of our sites about the synergies our solutions can offer and the roadmap that we have at Alcidion for a modern modular EPR. We look forward to sharing further progress with you with our half year results towards the end of February. I'd personally like to take this opportunity to thank our loyal shareholders for your ongoing support. In particular, those that contributed or took up shares in the recent capital raise. There's no doubt Alcidion's on a very exciting journey in a market segment that will continue to grow and be supported even during uncertain times.
As you would well- understand, the majority of our payers are in fact governments, and the need for healthcare and efficient delivery of healthcare has never been stronger. I look forward to keeping you updated as we continue to execute on our long-term strategic plan. Thank you for your time. Now, we did have a few questions logged and raised before the call, so I'm gonna take those first and then I'll have a look at what's been logged in the chat. Look, one of the questions that came up was in relation to the acquisition and the price at which the acquisition was done in terms of the share price. I did answer this and address this at the call in terms of when we talked about the capital raise.
I'll just reiterate the positioning around that. The acquisition of Silverlink was very important to our strategy, and I think I've probably outlined it at this call, and that strategy is to capture greater market share in the U.K. and elsewhere. We have been working that acquisition for some time. We were doing very solid due diligence, which I think our shareholders would expect us to do, and that due diligence takes the time that it takes. It was therefore we were ready to do that acquisition at a time when the market became more volatile. You know, as a result, we found it necessary to raise at a price that was lower than what the prevailing share price was at the time. We couldn't delay the acquisition.
It was very important to us in terms of future success. I expect that to be demonstrated through the course of 2022. The decision to proceed with the capital raising was made. I firmly believe it's the right one. It is also worth noting, I think, that we're very conscious of creating a structure that allowed our retail shareholders to apply for an additional allocation so that they could ensure they were not diluted by the fundraising. I understand some of the sentiment around this, but we just don't have control over market volatility. What we do have control over is our ability to build a business that has long-term significant shareholder value, and we're confident that the acquisition of Silverlink is going to contribute to that.
I'll leave all the questions now related to that. Some other questions I received. What's the company's capacity at this point, based on trained staff? For example, if 10 trusts signed up tomorrow for Miya Precision, how many of those could occur concurrently, and how long would you need to then schedule the remainder? I usually tell my team when these things come up that that would be a good problem to have. The truth is we don't model hypotheticals, but what we do regularly do is review the pipeline and the stages of where the deals are at in the pipeline, and then when the potential for those projects to start are, and then we map that onto our resource availability very regularly. That allows us to plan who will be available in which team and when they'll be required.
In addition, we have established an implementation partnership with a firm in the U.K. to assist us with flexing the workforce as required. I'm confident we're well-placed to manage those sorts of challenges. Another question was, people not adhering to medication post-hospital are a major source of hospital readmission. Do our clients have an incentive to lower readmission rates? They certainly do. Typically, you will see KPIs for the hospital management team to include reduced readmissions, certainly within 28 days of discharge. Also, it is generally a requirement of costing and funding agreements as well. They do have incentive. Turning to some of the questions that are in the chat at the moment. Looking at interest from customers, which modules are seeing the highest level of interest?
At this point in time, as I indicated during the presentation, we're seeing increasing interest in the core modules of Miya Precision, and they are around bed management flow and the journey boards. Really being able to manage that. How many people have I got in hospital at any one time? Who could go home? Who's blocking up the system? It makes absolute sense given the way the healthcare system at the moment is, that that's the sort of interest we'll be seeing. Question is, in the recent Commonwealth contract, is the AUD 23.3 million the total contract value or just Alcidion's share? That is just Alcidion's share in the consortium.
It is far more significant than that, and I expect in the next few weeks we'll see more information come out in the details around that consortium, the partners and the Commonwealth's plans for it. Is Alcidion expected to be cash flow neutral to positive going forward with Silverlink on board? What moves this around? Thanks. I mean, look, I think what I have stated to the market is that in this financial year, we're looking to be breakeven, obviously Silverlink contributing positively to that. Each quarter can still move around a bit depending on the receipts and where those contracts land. So yes, I think you'll still see some movement quarter on quarter.
Given current inflation trends, particularly tech wage engineering inflation, what inflation causes does the latest contract have? All our contracts are well- covered around inflation. We have at a minimum CPI ability to adjust to CPI, but we often include in our contracts wage index IT considerations as well. We're very aware of those potential fluctuations and we keep across those. There's a question around Alcidion products having greater success in the U.K. compared to Australia, are there any structural factors in this? Look, I think that, well, there's lots of reasons behind some of the things. A lot of funding going into the U.K., a strong emphasis at the national level in the U.K. on digital health.
What we have in Australia is obviously that a lot of the digital health in the area that we work is often funded by the states. The states at the moment, in Australia, are very much focused on dealing with COVID. I think in the U.K., we've got a very national view to health reform, a lot of funding going into it, and Alcidion has an opportunity there that we've seen and decided to go after because of the size of that market. We still continue to get significant interest in Australia and New Zealand in our products. The last year, it's fair to say the two biggest states in New South Wales and Victoria have been very consumed by the situation with COVID, and they're...
Still, the interest we are seeing out of this market is very much in patient flow and remote patient monitoring. Lots of questions. Okay. There's a question, a few questions around cash flow, which I think I've answered. There's a question around, and this might be the last one as we come towards the end. There's a question around a lot of M&A in the digital health space over the last few months with the recent Oracle acquisition of Cerner and, you know, many others, I think, in the preceding year or two. What impact does this have sector-wide from a consolidation perspective on our growth plans? Any unique opportunities for Alcidion to benefit?
Look, you know, there has continued to be consolidation in this sector, and I actually think we'll continue to see it throughout the course of this year. Digital health, as I've said many times before, has been behind other industries or health has been behind other industries in terms of the deployment of digital assets to improve the efficiency and delivery of healthcare. We are now seeing, as a result of COVID, increased investment in this area, increased need, increased focus, and that, as a result, has spurred or, you know, lit a flame, I think, under the industry. In particular, I think we'll continue to see that.
As I've called out many times, I think the large EMR vendors, of which Cerner is one, are very challenged in terms of being innovative and responsive to these changes in the market. They were struggling, I think, in terms of continued growth, with what I consider a legacy platform. They needed to do something, and Oracle is in a very similar position. I think it'll be very interesting to see what comes of that. I think the unique opportunities there for us is that we are a very modern platform. We have actually built the solution. It is available, and we have a very flexible and innovative front end that people find extremely attractive that positions us quite differently to any of those, existing incumbent suppliers, in the market.
I think probably that exhausts a large part of the questions. I wanna thank you very much for your time today. Thank you for your continued interest in Alcidion. We are very positive about the outlook over the second half of the year, notwithstanding some of the challenges in healthcare. We will continue to keep you updated, and I look forward to giving you a presentation on the half year results later in February. Thank you.