Good afternoon, everybody, and a very warm welcome to this afternoon's presentation about Alcidion's financial results for the financial year ended 30 June 2022, which were released on the ASX this morning. My name is Kerstin Wahlqvist, and I am the Investor Relations Manager at Alcidion. I'd like to begin by acknowledging the traditional owners and custodians of the various lands on which we work and meet today, and to pay my respects to their elders past and present. I extend that respect to Aboriginal and Torres Strait Islander peoples who have joined us on the call today. Today's webcast will feature a short presentation by our Alcidion Managing Director, Kate Quirke, and Alcidion CFO, Matthew Gepp, who will take you through the numbers and an accompanying business update.
This will be followed by some time for Q&A, where we'll be joined by our chair, Rebecca Wilson. All participants are currently in listen-only mode. If you do wish to ask a question, you can do so anytime by typing into the chat box or the Q&A panel at the bottom of your screen. Please note that we have received a number of questions in lead up to today's session, and we will hold all of these questions until the end of the presentation. With that, over to you, Kate.
Thanks, Kerstin. Thank you to everyone for joining us this afternoon and for your continued support of Alcidion. The past twelve months have been significant for Alcidion. As highlighted in the last call I did around the 4C, we've achieved record new sales for FY 2022. We also had the completion of several really important strategic pivotal agreements and contracts and that have enabled us to progress towards our ambition to become a global organization at the forefront of digital healthcare. Certainly this afternoon on this brief update, I'm gonna just give you a very brief lead-in. In the majority of the call, I'm gonna turn over to Matt being the full year financial results. This is his opportunity to share that information with you.
He'll take you through some summary and some detailed information from the annual report and the Appendix 4E, which were released earlier today. We'll obviously have time, all of us, as we said, for questions afterwards. Very happy to take those. We've given you quite a detailed update, I think, about the full year progress in terms of contracts and I will touch on those later. That call, we did cover off a lot around new sales business activity. As I said, we're gonna focus this call on the financial metrics, and Matt will take you through those. I think it is important to note, though, you know, Alcidion as a business has grown across all metrics.
We've had a record year in terms of new sales and increasing market presence in all the geographies that we currently exist in. It's fair to say the healthcare industry continues to need access to smart, innovative technology like Alcidion is providing, and that there are significant challenges in current healthcare delivery, and anyone who reads the newspaper or watches the news will be well aware of those. For us, we are well-positioned to provide technology as one means of addressing some of those very significant challenges. I touched on in the 4C, you know, how we're doing that with the Miya Precision platform.
I think, before I hand over to Matt, just to reiterate how pleased we are with the engagement and the pipeline growth that we're seeing, and the continued sales we're seeing across Australia, New Zealand and the U.K. You will see in the numbers in the annual report that we've continued to grow the U.K. business as a proportion of how much is coming into the business from a revenue perspective. We'll continue to see that grow. It has increased on the prior calendar period. That, as I said, that's a trend we expect to see continue.
It's absolutely in line with our business strategy in terms of the size of that market, the acquisitions that we have taken on in that market and, the focus that we're putting on the Miya Precision platform being able to provide a modern modular EPR in that market. We've outlined in the annual report today, the manner and the way in which, our modern modular EPR proposition differentiates us into that market. I'm gonna hand over now to Matt, our CFO, and let him talk you through the financials in more detail. Thanks. Over to you, Matt.
Thank you, Kate, and good afternoon to all the shareholders who have joined us. We appreciate you taking the time out to hear about our results. We're on the financial highlights slide. Financially, Alcidion has had its strongest year to date. We delivered record revenue of AUD 34.4 million, marginally higher than what we guided in the 4C release in July and 33% up on the prior year. It was pleasing to see the recurring revenue growth outpace the total revenue growth with recurring revenue up 42% to AUD 23.3 million. I'll talk more to that number on the next slide. As guided in July, we delivered positive underlying EBITDA of AUD 0.9 million, which is 80% up on the previous year.
Our gross profit at 86% was marginally down on the prior year GP of 88%, and that's reflective of our product mix. You know, we've talked about this in previous presentations. In order for us to provide our customers with a broader product solution, Alcidion partners with and sells third-party solutions such as Provation's cloud-based iPro anesthetic information management system or the Better Meds e-medicine system. While the margin on those resold products is lower typically than what we see, when we sell our own products, which, you know, typically run at about 90% plus, the resale of those products does contribute meaningful incremental margin to the business. We delivered positive operating cash flow for the second year running of AUD 1 million in FY 2022.
If we exclude the two point one million of M&A costs that we incurred, the normalized operating cash flow for the year would have been around AUD 3.1 million. As we mentioned in the last quarterly, all of this comes off the back of our strongest year of new sales with FY 2022 total contract value sales of AUD 57.7 million. It's almost double what we delivered in the prior year. These contract wins are indicative of our customers' long-term satisfaction with Miya Precision and a strong validation of our agile and modular strategy. We end the year with no debt and cash of AUD 17.3 million, noting, of course, that we did fund part of the Silverlink acquisition from our cash reserves.
Kate will touch on the AUD 28.3 million total revenue later in the deck, and we'll move on to revenue, which we already have. Okay. As we touched on full year revenue, AUD 34.4 million, up 33%. As you can see in the half on half graph at the top left, we delivered exceptionally strong second half, reporting AUD 21.5 million revenue in H2. That was driven by a combination of organic growth, coupled with acquisitive growth from Silverlink, which contributed AUD 4 million to the revenue in H2. AUD 4.3 for the year, AUD 0.3 of that was in H1. Moving to the bottom left, we're looking at the recurring, non-recurring revenue here. Our commercial fundamentals have strengthened in line with our strategic objectives.
We continue to see a steady shift in our revenue mix in favor of products. We ended FY 2022 with AUD 23.3 million of recurring revenue. Recurring revenue now makes up just shy of 68% of our total revenue. This is an important financial pillar of our future success, with product revenue more easily replicable and scalable. As you know, this has been a strategic focus for the company over the past few years, and we only have to look back to 2019, where less than half of our revenue is coming from product or associated services. Moving to the top right, this graph demonstrates the importance of the UK market to our strategy, given the size of the total addressable market there.
This has been a strong year for both regions, with the revenue in the U.K. business increasing 43% to AUD 16.3 million, and the revenue in the ANZ business increasing 25% to AUD 18.1 million, following a fairly flat FY 2021. U.K. contribution now sits at 47% of total revenue. The U.K. revenue mostly benefited from acquisitive growth this year, but the impressive ANZ revenue increase came all from organic growth. Okay, the P&L. Okay. I've already talked to revenue quite a bit, so I'll skip over that. Importantly, and in line with what we've been guiding in previous presentations, we reported positive underlying EBITDA in FY 2022 of AUD 0.9 million, 80% higher than the AUD 0.5 million we reported in FY 2021. It's important because the business has now delivered positive underlying EBITDA two years running.
The gross profit contribution increased AUD 6.6 million on the prior year off the back of the 33% increase in revenue. That was offset by an increase in OpEx of AUD 6 million. In the OpEx, staff costs are a 27% year-on-year increase. Keeping in mind that that number includes 6.5 months of staff costs from the Silverlink acquisition. The increase in staff costs was not unexpected, with the full year impact of new hires from Q4 last year now being carried for the full year in FY 2022. Marketing and professional fees were largely unchanged from the previous year, with other OpEx increasing by a larger percentage, but a dollar increase of only AUD 0.8 million. That's largely reflective of us having more staff and generally more activity in the year with COVID not restricting us as much this year.
We incurred AUD 2.1 million of costs in relation to the Silverlink acquisition. That's a one-off expense and is consistent with the size and complexity of the Silverlink acquisition. Finally, on the P&L. Now that we've finalized the acquisition accounting for both ExtraMed and Silverlink, the business is amortizing those intangibles such as software and customer contracts that were required to be amortized in accordance with the accounting standards. That added AUD 1.2 million to the D&A line in FY 2022. On to the balance sheet. Okay. The balance sheet has changed quite a lot since the previous year. As we've already touched on, we ended the year with AUD 17.3 million cash, and the reason that's down is because we funded the Silverlink acquisition, partly from our reserves. Notably, the intangible assets increased substantially in FY 2022. Again, Silverlink's a theme in this presentation.
That's, you know, this is due to the Silverlink acquisition. You can find details of that accounting in note 12 of the financial statements. You'll also note that we're carrying AUD 12.9 million in deferred revenue at the end of the year. That's quite a bit higher than June 2021. It is broadly consistent with the AUD 11 million we reported in the half year accounts. It's partly due to the higher than usual trade receivables of AUD 7.3 million. It's partly due to the Silverlink deferred revenue coming into the books as well. Finishing up on the balance sheet, I'd just like to highlight that we are still carrying AUD 2.6 million in deferred consideration, being the second tranche payable on the Silverlink acquisition. That may be paid as early as Q4 of FY 2023.
As we talked about in the 4C presentation, we did settle the first tranche of deferred consideration that was carried in the half year accounts. Okay, the cash flow. This is the second year running that the business has reported operating cash flow. Positive operating cash flow, sorry. We've now reported 4 operating cash flow positive quarters out of the last 8. Excluding the AUD 2.1 million acquisition costs, operating cash flow would otherwise have been around AUD 3.1 million. Our cash receipts are a record, up 29% to AUD 41.4 million. It's important to remember here in the cash flow that cash receipts includes GST or VAT, which in the UK is 20%, and that explains much of the difference between our reported revenue and the receipts we report on the cash flow.
We've talked a lot about Silverlink already, but here you can see the AUD 59.5 million we've paid to date to the Silverlink vendors. We can also see the AUD 55 million we raised in December to fund most of that acquisition, which raised AUD 51.9 million net of costs. Finally, on the cash flow, as with previous years, Alcidion is not a capital-intensive business, and payments for PP&E were flat at around 300K for the year. That is the financials summarized. I'll hand over to Kate to finish the presentation before we take questions.
Thanks, Matt. I thought it was worthwhile just reiterating a couple of the sort of the corporate activities and things that were important during the year, most of which are detailed quite a lot more in the annual report, which I suggest you all take the opportunity to read. I think there's some very good information in there around the focus for Alcidion. FY 2022 was very significant. As I said at the beginning, we signed a lot of pivotal contracts that have really indicated a step change in our ambition towards becoming the global leader in digital healthcare.
Really also very important and transformative step we took during the year was the acquisition of Silverlink, which at the time, as I highlighted, is one of the last remaining independent patient administration systems in the U.K. We did a AUD 55 million capital raise to fund it. What is a strategically important acquisition for us, and I have talked about this on many calls. Just to reiterate, in line with our electronic patient record or EPR strategy, as they call it in the U.K. and increasingly of interest in New Zealand, this acquisition has provided Alcidion with that core patient administration capability that enables us to expand our product offering beyond the platform that you know historically we had been sitting on top of an EPR.
It allows us to be active and competitive in that electronic patient record market with a modern modular electronic patient record that ultimately is gonna be cloud native. I think that's a true differentiator for us. It does truly rival some of the incumbents that are available. It also actually sets us up with quite a very different proposition in respect of EPRs to this market and positions us well to expand our UK presence through the current Frontline Digitisation Program that the NHS is running, which is to modernize the NHS from a technology standpoint, indicating that by the end of 2023, you know, 90% of the trusts are to have an electronic patient record selected, with 100% of them deployed by the end of 2025.
The acquisition of Silverlink has given us the opportunity to champion our modular strategy, and which would not have been possible without the acquisition of the Silverlink PCS solution. We are very much looking forward to partnering with the NHS trusts and their integrated care systems to achieve their vision of a digitally enabled health and care system. Moving to the wider business opportunities, you know, despite continued uncertainty and, as I said at the beginning of the call, there's a lot happening in the healthcare market, let alone what's happening in the wider, broader macroeconomic environment.
We signed several new contracts in the Australian and UK markets, some of which were contracts with existing long-term customers who have committed for another five years, to upgrade to the latest version of Miya Precision, and to continue that long-term relationship with, which is a really demonstrative proof point of the benefits that our solutions bring. During the year, we announced our role as part of the global consortium to build the new AUD 299 million or AUD 300 million health knowledge management system for the Australian Defence Force. The HKM, as it's known, is a critical project for the ADF, that will improve the care delivered to current and past military personnel.
Our Miya Precision platform is gonna consolidate all the data from multiple partner systems, many of which are Australian companies, to provide all treating clinicians with access to what we refer to as the longitudinal health record, a record of all of the activity during an individual's service with the ADF. Of all of the things that have happened to them in respect to their healthcare services. You know, we are extremely proud of the leading contribution we're making to this deployment of the HKM, working closely, as I said, with a lot of other Australian companies, under the guidance of this large systems integrator, international systems integrator, Leidos.
For us, this project really has demonstrated that Alcidion solutions are increasingly scalable and able to play a central role in enabling that integration across multiple and diverse healthcare system settings beyond the four walls of the hospital. During the year, we continued, and Matt touched on this a little bit, we continued to invest in our people, adding key growth focus roles during the year. We appointed Director of Strategy and Business Development, Florian Strohl. We appointed a UK Chief Medical Officer, Dr. Paul Deffley. We appointed a UK Head of Strategic Markets, Steve Leggett, who's had many years' experience with Cerner in that EMR market, who's leading the drive for positioning Alcidion into that EMR market opportunity.
At the board level, we're really pleased to have announced and appointed two new non-executive directors in Victoria Weekes and Danny or Daniel Sharp. Victoria brings a deep understanding from the healthcare sector, many years on the Sydney LHD board. Danny, a career in investment banking and corporate finance, has really added to the strength and capacity of the board led by Rebecca. One of those appointments was actually replacing Nick Dignam, who resigned from the board in November 2021 after almost five years with us. We thank Nick for his contribution and service.
As I touched on earlier and in detail in the last quarterly, we signed several strategic contracts, both new and renewal, which contributed to the record sales for the year of AUD 57.7 million. While I think I pointed out in the quarterly and have done so in subsequent discussions with people, not every contract of those contracts was announced to the market for commercial and materiality reasons. You know, that's gonna be an important step going forward. Collectively, they really help position Alcidion's market penetration, the referencability we have for our prospective customers, and obviously an impact on that recurring revenue number, which we're seeing continue to grow as we add more and more of these contracts into our backlog and our forward booked revenue.
In FY 2023, we will announce contracts that are over TCV of AUD 3 million as per ASX guidance, or where they're considered strategic enough that they'd impact investor decisions in a significant manner. In terms of our U.K. market presence, we ended our FY 2022 with at least one product in 39 NHS trusts, or about 27% of all acute trusts in the NHS. We also penetrated our first mental health and community trust with Miya Flow and Miya Observations and Assessments at Hereford and Worcester. We also have at least one product in almost 50% of the integrated care systems across the U.K. An integrated care system is a consolidation of a number of trusts into a regional grouping. These touch points basically provide Alcidion with several touch points to leverage potential future ICS partnerships.
It's from this very strong position, and the integration of Silverlink into our product suite, that we're well positioned to expand our UK presence, through that frontline digitization program that I mentioned earlier. I think meanwhile, our modular approach to implementing Miya is continuing to resonate with customers as we saw through the year, where we had a number of sales into new customers with some modules, as the beginning of the Miya Precision platform. Where we upgraded or added additional modules in where we already had an initial presence. I won't talk in detail about all of the contract wins on this call, 'cause I did so in the last quarterly update.
You know, just to point out that the range and breadth of these contracts that Alcidion is now winning, that they involve new customers, new market segments, they involved upsell to existing sites with new modules. Some are renewals and some are contract extensions, including the upgrades of Miya Precision that I touched on before. By every measure, Alcidion has demonstrated delivery on the strategic pillars that we have outlined and within the timeframe that we have outlined. We begin 2023, FY 2023 in extremely strong position with AUD 28.3 million of contracted revenue, able to be recognized in FY 2023, which is up 87% on the prior calendar period. We start this year in a very, very strong position.
With a further AUD 2.9 million of scheduled revenue expected to be converted to contracted revenue in FY 2023, that positions us with at 92% of the contracted revenue that we did for FY 2022 already contracted for and able to be recognized and delivered as the year progresses. A very strong position from which to start the new financial year, while at the same time having this increasingly significant opportunity in the UK that is funded through the Frontline Digitization Program. As we move into FY 2023, our focus will remain on the three growth drivers that we have been discussing throughout FY 2022. New contract wins, which build on our long-term TCV, but also add and validate our product offering into new customers.
Upselling additional modules to existing customers who have bought into the Miya Precision solution, and also renewal of contracts that continue to add to our recurring revenue streams. The pipeline continues to expand and mature, particularly in the UK, as Alcidion's modular product approach starts to attract increasing interest from within the sites in the UK and increasing understanding about our proposition. With South Tees now live, with the Better Meds in conjunction with Miya, we have a reference site that can demonstrate the value that we bring, the speed to which we can also bring that value, comparative to some of our competitors in that market.
We have an exciting proposition we're already two months into the new financial year, which is a bit hard for me to believe, to be honest. We'd very much like to open up to questions now. Thank you for your attention. I think there have been some questions already put forward, so I'll hand over to Kerstin to moderate the questions.
Great. Thanks, Kate and Matt. Yes, moving into Q&A now, where, as I mentioned earlier, we're delighted to be joined by our chair, Rebecca Wilson. If you do have a question, please type it into the Q&A panel at the bottom of your screen, and we'll look to address it alongside the questions that were entered, prior to the session commencing today. Any questions that are of a similar nature, we'll aim to group by theme, so to allow for greater breadth of discussion. Any questions that aren't answered on the call today, we'll respond to in writing after the webinar. All right, kicking off with the first question, could you please explain your near-term pipeline growth and what chance there is that that will turn into real contracts, and in what timeframe and size?
If I could just add a part B to that question, with the current pipeline of contracts, what proportion of new potential contracts includes Silverlink as part of the tender?
The pipeline continues to grow and mature, right? With a range of opportunities at different stages of maturity. I think it's, you know, we often talk a lot about Miya Precision and Miya EPR, but there are modules within that or subset, as demonstrated by a lot of the contracts we signed in the Q4. They're all different sizes in value. Their speed to move through the pipeline and mature through that pipeline often depends on the size. The larger ones, by their very nature, have more procurement hurdles to go through, so take a longer time to move through it. There is always opportunities at different points. The pipeline has definitely continued to grow as we've announced new contracts, as we have done acquisitions.
Of course, we have the increasing impact of the electronic patient record requirements of the NHS Frontline Digitisation Programme to see, you know, 90% procuring an EPR or a version thereof by 2023 and through to 2025. That's having an impact, of course, on our pipeline and added impact opportunities into that. A lot of those opportunities, not all, but a lot of them have come about as a result of our existing presence through the Silverlink acquisition or through the messaging and proposition that we now have. There are a number of pipeline opportunities that we've been able to respond to that we would not have been able to respond to had we not done the acquisition and added the PCS solution from Silverlink into our total proposition to the market.
Of course, I expect these to turn into real contracts. How many of those will depend on a number of factors. It is a competitive environment from the EPR perspective. We still have opportunities where we can sell into existing contracts. Maybe one of the ways in which I might be answering a couple of questions here is just to explain the way in which these procurements are being done in the U.K. The NHS has said, "First of all, we'll match your funding." They're not necessarily funding all of these EPR programs. They're adding, they're providing some funding but not 100% of the funding, so the trusts need to be able to find some of that funding.
They fall into the categories of trusts that have got nothing much in respect of an EPR. They may be just got a patient administration system. There's a smaller number of those, maybe 10 or so, that would be coming from a sort of base start. There are some of those that we will definitely be competitive in. There are also around, and I don't know the exact numbers 'cause I haven't got Lynette's detail in front of me, but say 60-70 trusts that fall into the category of have bought some components of a modular EPR. They may have some of Alcidion's product. They may have other what we call best-of-breed solutions.
Those are the ones that are of great interest to us, 'cause the Alcidion proposition allows us to sit across, consolidate all the existing investments they've made into those best-of-breed solutions, but then also add our modules in to create the true modular EPR. Those are the ones that we are very focused on going after at this point in time. Some of those are Silverlink, existing Silverlink sites. All of the existing Silverlink sites, with the exception of the London Trust, which is already going down a Cerner path, are opportunities for us to have conversations about, the upsell of Silverlink into a full EPR. Long answer, but probably answered a few questions.
I think so. Thanks, Kate. Next question. How do you plan to achieve sustainable NPAT and growth together?
Is that me or Matt?
That's probably a.
Doesn't matter. I mean, I can do that. I mean, we've invested in the last couple of years in scaling the business, establishing in-house PPC, full-time general counsel, expanding the sales and marketing team, building a managed service and support team. They're, you know, necessary investments for scaling the company to manage growth as we move forward. I think, you know, it's fair to say, as I've indicated, that we've done a lot of those what I consider baseline scaling investments. Not saying that there won't be additional, you know, leverage that is needed at times, but it won't be in a linear fashion. I think we've got a very well-established base from which to grow for, and I think the fixed nature of the business will be there as.
We should start to see more leverage from the revenue, as we move forward.
Thanks, Kate. Next question: Is there any plan for selling Alcidion products to private hospitals like Ramsay Health Care, Mater Health, et cetera?
Oh, yes. The private sector is very much part of our total addressable market, and we've already had some demonstrated engagements and contracts with a number of private hospitals, particularly in the data and analytics space, work we've done with Healthscope and Calvary, and we continue to target them as an opportunity.
Great. A couple of questions around geographical expansion. How is the progress in India? Any plans for other countries, or indeed any other territories outside the U.K. and ANZ, and any timing on further international expansion?
Look, we continue to explore India and other markets for opportunities to expand, but as you'll appreciate, this doesn't happen in a matter of months. It takes time to analyze the market. What are the important segments of the market? How are you gonna enter that market? India is of interest to us, but it's a maturing market, so we will continue to engage with the assistance of Austrade, who are very supportive of Australian companies like ourselves in that market. It is a market where the middle class is becoming increasingly interested in what they're getting out of their healthcare and their healthcare spend. India will continue to be a market, but it's not going to necessarily happen overnight.
We are continuing to focus on that and starting now to look at other markets. We have in the past considered Canada, and that as a potential entry into the United States and North America. That continues to be of interest to us. It's a market that requires us to investigate the right way to enter. I think there's also a question around consolidation of the market and how one of our possible opportunities to enter, certainly Canada and/or the United States, is to partner with some of the larger electronic medical record vendors. That is still very much a possibility. We are and continue to have those conversations.
I think there is no doubt what we do is applicable to the North American and Canadian market in particular, Canada being a very similar healthcare system to ours. I would see over the next 12-18 months, you know, we hope to have done more work in respect of the best way to enter some of those new geographies.
Thanks, Kate. I think the next question will be for Matt. Can you give us an idea of what made up the AUD 3.3 million in other expenses and why it increased?
Absolutely. Thanks, Kerstin. Look, it's a good question, and I know everybody likes to get as much detail as possible. You know, this falls into the non-staff OpEx category for me, so professional fees, marketing are pulled out individually because of their material nature. The rest of the other OpEx is typically IT-related costs, hosting our dev environment and improving our general IT security posture. Insurance, travel, recruitment, training, all those types of items fall into that. You know, I have to say insurance is up. Recruitment costs are up this year. Travel, we saw an uptick in travel in H2, particularly Q4, as restrictions lifted. You know, that's not unexpected. We also inherited some costs from Silverlink, and that's not unusual when you buy a company. All of those kind of double-up costs are slowly being unwound.
We've pretty much done that by June. Maybe a little bit of a bump there because of Silverlink, and hopefully that will settle down a bit. You know, travel has opened up again and we do need to start engaging, you know, with the world, and so we might see a little bit more cost there moving forward. You know, I always focus on, you know, how much of our revenue is absorbed by non-staff OpEx, and that's around 15%. It was 15.3% last year, 14.8% this year. The, you know, the important thing for me is keeping that metric moving down, which goes to our efficiency. Long answer, I know.
Thanks, Matt. I'm gonna throw to you again, for the next question, if that's all right. Is the company still on track to reach net profit breakeven in FY 2023? If not, when do you think that will happen?
Look, another good question. Look, our focus, you know, for the next year at least, or for the next few years, is on positive EBITDA. Not underlying EBITDA, but positive EBITDA. That will then be reflected in positive operating cash flow.
Below operating cash flow, we don't have a lot of cash outgoings. They're the two metrics we're focused on. I guess we'll talk about NPAT more in the future, but at the moment, that's not what we're focused on today.
Great. Thank you. All right, next question. A great result. With recent high-profile corporate transactions, such as Oracle buying Cerner, how should we think of these global giants? As competitors or potentially partners? Pre-COVID, part of that group's international ambition was to partner with one of the large EM, EMR vendors. Is this still part of the strategy?
As I touched on, I think it's certainly part of the possible opportunity that's available to us. We certainly have demonstrated our ability to add value to the Cerner environment, increasingly seeing opportunities around InterSystems. And I think we will. You know, that is one opportunity. There are opportunities to partner with large consulting firms and medium-sized specialist consulting firms as well. All of those, I think, are potential avenues to new markets.
Thanks, Kate. Next question. What can we expect in terms of operating leverage going forward? Will one-off costs around M&A continue to be a feature of your results as you see further growth?
Well, only if I continue to do M&A. I think I've said before, we have not got an active M&A program of work in play, but we still remain open to strategic opportunities that may present themselves that look at aligning with our intent to be a global provider. You know, we will remain open to them, but not active. If there are no M&A costs, obviously, then we won't be focusing on those in terms of EBITDA. At this stage, we are not anticipating any.
Thanks, Kate. Just taking us back to UK and the ICSs, have you seen any acceleration in the power and/or buying role of the ICS in the UK or is it still in the early stages?
Good question, and I think it's inconsistent depending on the ICS. The ICS came into actual statutory being first of July. Some of them are really active and are working together across the trusts and are making some collective decisions. Others are still going about things as individual trusts. Suffice to say, if you want to buy anything, you certainly do need to get approval at the ICS level. Our sales team certainly factor that into their sales plan or program of activity.
Thanks, Kate. Next question. After expanding the team for the ADF contract, if we do win such an EHR contract, how much further substantial team expansion do we expect to deliver the project?
Look, it's hard to say. If we won five EPR projects in the UK, for example, at a particular time, we would need to look at, you know, have we got the right mix of people to deliver that. I've always said that, one of the opportunities for us in our markets is to partner with people, and we do have a partnership with a consulting group in the UK that would allow us to flex our team but not always take on new staff. The thing about the ADF contract is, some of that staff will not be needed for the entirety of, you know, post.
There's an intense period where the increase is going through, and we expect that we'll then be able to deploy those people into new EPR environments rather than continuing to hire at that level. You know, I think we've got quite a lot of leverage in the mix of staff and capabilities that we have.
Thanks, Kate. Next question. To what extent is your ability to grow constrained by the ability to attract quality new staff, and what is your background existing staff attrition rate?
Look, I think in the last 12 months, there's been some pressure on attracting staff, particularly in the IT development space and cyber areas. And we don't have a huge team of internal IT, but, you know, if you want some cyber specialists in that, which everybody needs these days, they've been harder to attract. In terms of people from a healthcare IT perspective, I think that we are attracting very high-quality people to our team. We have an excellent reputation and a building reputation in all our markets. I don't think we found that has been a challenge. Certainly in the last few months, I think we've seen a bit of a change in terms of the constraints on development. Now, we are not a huge organization.
We don't have 20,000 people, so we are not hiring, you know, hundreds of people, which obviously, you know, the Atlassian and so forth of this world are challenged with. I think on balance, we're doing very well, but we are continuing to attract very good people to our team. I have not seen any impact on our either attrition or hiring in relation to putting constraints on our ability to grow at all.
Thanks, Kate. I think so, we're almost at time, so perhaps just one last question, if I may. This is something, a nice one to finish on. What excites you most about the opportunities ahead for Alcidion?
Well, I mean, you know, we're coming off such a strong FY 2022 and start FY 2023 in such a strong position in terms of the booked revenue. That's exciting in terms of not only that we have that, you know, solid base, that consolidation now in terms of where the company starts, but that we've got real momentum in the key market opportunities, and we've demonstrated success in those market opportunities through the back end of last year. We're really focused on the. Well, I sort of break into three key opportunities.
It's the EPR market in the U.K. in particular, but I'm increasingly seeing there may be an opportunity in New Zealand for that as well, where we're positioned as a disruptor to, you know, and a real alternative to the large monolithic electronic EPR providers that they've historically been sort of forced down the road for if they wanted an integrated solution. Not only are we an alternative, but we're also a means to enhancing their existing investments and adding value to things that they've already done. You know, one of the things that often slows down the value you get from these investments is that you have to swap everything out, and our proposition is that we will protect those existing investments. We can keep Silverlink in place and add value around that, for example.
Secondly, our positioning as a like a smart healthcare infrastructure platform that supports things like improved patient flow, improved analytics, clinical decision support. Where they have invested in an electronic patient record, our ability to sit on top of that and provide infrastructure that gives them better access to data, more engaging platform, data presented to our healthcare workers in a way that's easy to use and understand and supports them. Thirdly, with the out of care hospital market, which I've often talked about, and we're really seeing increasing demand, you know, everywhere in the public sector and now increasingly in the private sector, are they looking at ways to treat people in the home?
Our Miya Precision offering allows us to integrate the data they already have on the patient, integrate wearable devices and medical-grade devices in the home and bring that data into a central platform such as we're doing at RPA Virtual. I find that incredibly exciting because basically, we are supporting new models of healthcare delivery at a time when the healthcare system is really shifting, needing to shift in the way in which we support and deliver healthcare. You know, I feel very excited and very privileged that Alcidion is part of supporting a real shift in healthcare.
Thanks, Kate. That definitely does bring us to time, and to the conclusion of our Q&A and to our presentations this morning. Many thanks to Kate, Matt, and Rebecca for your time. It just remains for me to hand back to Kate now for closing remarks.
Thank you, Kirsten. I'd just like to finish by thanking the Alcidion team. They've been an excellent team, in particular Matt and his team for the work they've done to bring together the annual results and all the reports that went out today. Kirsten and the team in terms of pulling together the annual report. I'd like to thank the board, Rebecca and all the board for the support that they've given us during the year. Very particularly, I'd like to thank you, the shareholders, for your continued support of Alcidion. We look forward to continuing to keep you updated on our progress through FY 2023.