Thank you very much. Welcome everyone to the FY 2022 results presentation of IMEXHS. Today, we are pleased to share our achievements with you and our future plans for the company. We have two presenters with us today. Myself, Dr. Germán Arango. I am the CEO of IMEXHS, and Reena Minhas, our CFO. I will be running through the FY 2022 results presentation released to the ASX investors platform yesterday. It will be helpful if you can have this in front of you. We will open it up for questions at the end of the presentation. Turning to Slide 2. Today, I want to take you through an overview of our company, our operational results, and discuss our strategy and outlook. Reena will talk to the FY 2022 financial results. Turning to Slide 4. Firstly, let's take a look at IMEXHS overview.
We are one company with two businesses that aim to democratize access to medical expertise. We provide innovative cloud-based medical imaging software solutions as a software provider, and we also outsource imaging services and teleradiology to hospitals and medical facilities as a radiology services provider. Slide 5 shows our global footprint, which is expanding now with 449 sites installed in 18 countries. More than 3,000 radiologists using our software and 35 distributors. Much more mature in countries like Mexico, Ecuador, and some Central American countries. On the radiology services business, we have operations in Colombia, Spain, and Mexico, with 35 radiology centers and more than 150 in-house radiologists. Turning to Slide 6 and 7, let me share with you our FY 2022 results overview. We have demonstrated the scalability of our business across different geographies with an attractive product and disruptive business model.
Our focus now is generating positive earnings and cash flow. We have pulled back from costly direct sales efforts in the U.S.A. Our focus is on sales within Latin America and those product development projects that have a path to profitability in the near term and clear competitive edge in the mid-term. Our efforts have paid off. We are happy to announce that our FY 2022 revenue was AUD 17.1 million, up 28% on PCP and 34% up on constant currency. This is a testament to the hard work of our teams and their dedication to delivering high-end services to our customers. We are confident that 2022 will be seen as a transition year to a profitable, growing future. On Slide 8, I show now our FY 2022 operational highlights.
We have continued sales momentum for IMEXHS Cloud with an ARR of $3.5 million from 169 active customers at 31 December 2022. IMEXHS Enterprise and IMEXHS Cloud installed in 63 new sites in the year, with a total of 449 installations worldwide by 31 December 2022. Our software contracts in LATAM and outside of Colombia are priced in US dollars. During the year, we announced that the company was awarded a new expanded three-year contract with a major hospital group called Colsubsidio for the outsourcing of its entire radiology services network at increased prices and additional services. We also renewed our two contracts with Colombia's National Police Force with a price increase of 15% an ARR of $1.3 million.
Additionally, we have entered a high-margin enterprise software RIS/PACS three-year contract with Mexico's Social Security Institute. In February this year, we commenced operations and billing for a new material radiology deal. We flagged these negotiations some time ago, and the contract is still awaiting final signature. We will announce the details when the contract is executed. Turning to Slide 9. We have also focused on cost reduction with a cost-out project addressing the cash cost to the company and improving at the EBITDA level. This cost reduction plan was successfully implemented and completed by the end of Q3 in 2022. We have consequently decreased our run rate operating and software CapEx costs by circa AUD 250,000 per month with a view to moving the company to cash positive. This has driven increased margins with no significant impact on operations.
Slide 10 shows our financial highlights. Our sales revenue was up 28% year-on-year and 34% on a constant currency basis. After choosing to exit a customer with a poor payment record, our ARR was down 4% year-on-year, but up 8% on a constant currency basis. Our underlying EBITDA was AUD -0.1 million compared to AUD -1.4 million in FY 2021. Our recurring revenue was up, we closed cash at AUD 1.9 million and debt at AUD 1.1 million compared to AUD 2.4 million at the end of FY 2021. Slide 11. We are pleased to present for the first time the split by business model, software and radiology, including revenue, ARR, and EBITDA. We will continue to report in this way for future releases.
ARR for radiology being below revenue reflects exiting a business with a poor payer at the end of June 2022. We close business in our pipeline, we expect to see good growth in radiology. On the other hand, we expect to see revenue growth in software as we implement contracted but not yet billing customers. Turning to Slide 12. IMEXHS has a diversified business model with its offerings in the healthcare sector, including its enterprise imaging platform, standardized cloud-based radiology solution, and outsourced radiology services. IMEXHS Enterprise, tailored to large complex hospitals and multi-site healthcare organizations, has now 117 customers across eight countries. The platform has around 10 million new studies per year, up 33% year-over-year. Turning to Slide 13.
On the other hand, IMEXHS Cloud, a standardized radiology solution, has been successful in penetrating the underserved global market, providing small and medium-sized customers with a low cost, rapidly deployed product offering. The company has signed 169 deals as of December 31, 2022, and generated an ARR contribution of AUD 3.5 million in 18 countries. On Slide 14. Finally, the company's radiology services offering provides outsourced radiology services, including administration, technicians, enterprise software, training, equipment, if required, and radiologists located on premise and internal teleradiology. The teleradiology services are predominantly for international customers. Given the magnitude of the operation, the company has become a top 5 player in the Colombian market and a leader due to the high academic profile of the radiologist team.
Let me now pass to Reena, who will take you through the FY 2022 financials in a little more detail.
Thank you, Germán. I will now run through the FY 2022 financial performance of the company starting on slide 16, progress in annualized recurring revenue. ARR of AUD 19.7 million as at 31 December was down 4% versus PCP and up 8% on a constant currency basis. ARR of AUD 19.7 million consisted of AUD 10.5 million from radiology services and AUD 9.2 million from software. The software ARR includes AUD 3.5 million from 169 active IMEXHS Cloud contracts and AUD 5.7 million from IMEXHS Enterprise. The increase in ARR reflects new contract wins in the high margin IMEXHS Cloud and enterprise software businesses. The decrease in radiology ARR largely reflects the company choosing to exit a customer on 1 July 2022 due to a poor payment record, which has been partially backfilled.
The chart shows annualized recurring revenue, which is currently billing as well as ARR, which is yet to commence billing in a lighter shade. We focus on getting this ARR billing as soon as possible. Turning to Page 17, the income statement. FY 2022 revenue of AUD 17.1 million was up 28% versus PCP and up 34% on a constant currency basis. The software and services split of revenue is AUD 6.4 million and AUD 10.7 million respectively. Recurring revenue represented 98% of total revenue in FY 2022 versus 92% in the prior year, which included AUD 1.2 million of one-off sales. The underlying EBITDA loss, which excludes costs in relation to share-based payments expenses, foreign exchange movements, and one-off costs, was a loss of AUD 0.1 million versus a prior year underlying EBITDA loss of AUD 1.4 million.
Moving to Slide 18, the balance sheet. At 31 December, the company had a closing cash balance of AUD 1.9 million and net assets of AUD 15.9 million. Intangible assets of AUD 8.8 million consisted of goodwill of AUD 4.9 million, software assets, AUD 2.4 million, and AUD 800,000 of customer contracts. Slide 19 summarizes the cash flow. The cash balance at 31 December was AUD 1.9 million versus AUD 4.2 million at the end of the prior year. During the year, a capital raise of AUD 4 million was completed with proceeds used to pay down some high yield debt and fund working capital. Net cash flow used in operating activities in the year was AUD 2.2 million. The work on the cost-out program was completed by the fourth quarter of the year.
Q4 was negatively impacted by some collection slippage through to the beginning of January. Net cash flows used in investing activities includes payments for software development of AUD 1.4 million and a deferred payment for the RIMAB acquisition of AUD 0.3 million. The cost-out program and reduction in software development will see investing cash flows decrease during 2023. Debt of AUD 1.1 million was down from AUD 2.4 million at 31 December 2021, with debt of AUD 1.3 million being repaid during the year. I will now hand back to Germán to take you through the strategy and outlook on Slide 20.
Thank you very much, Reena. Turning to Slide 21, software development. We have pulled back from moonshot development and introduced much tighter discipline around project definition, resourcing, timelines, and ROI guidelines. Our strategy remains to deliver outstanding software and provide our clients access to the most advanced tools throughout our market. Most of our development is focused on immediate pro capabilities and extensions that will go- to- market within months. We continue to develop software that will give us a key competitive edge on several fronts, and that will go- to- market within one-two years. On Slide 22, as I said, we believe that 2022 will be seen as a transition year. We were confident in going into 2023 and remain so. We are seeing the evidence of the success of the cost reduction project.
We have a better-defined software development program. We have an aligned, motivated, and capable management team improving in their disciplines across the board. Our sales pipeline is quite strong, and we are working hard to convert those opportunities. The number of inbound inquiries has been rising and is now far higher than, say, 12 months ago. Recently executed contracts and near at hand ones will continue to grow for much of the year. While not providing guidance at this time, our objective for the year is to deliver solid growth and a cash positive outcome. I will now hand over to the operator to open it up for questions.
Thank you. If you wish to ask a question, you will need to press the star key followed by number one on your telephone keypad. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Nick Worrell with 700. Please go ahead.
Good day, Germán. Of most concern to me was the unexpectedly low EBIT margin on RIMAB. I think you generally touched on this somewhat here with some price increases pushed through. Is there anything more you can elaborate on there for us investors?
Hello, Nick. Thank you for your time and question. RIMAB is essentially delivering radiology services through a outsourcing model, which has in average gross margins around 20%-25%. In the previous year, we have been doing a big work around the optimization of our cost structure. Now there has been big improvement, but during the year, we were close to the limit. This is something that I can say that is improving and will be better shown in the numbers of the current year. The previous year was, as I said, a transition year in which we had to improve performance and enhance at several fronts, like this front of the margins from the radiology services side.
We have achieved a few goals and milestones to improve these margins. Like for example, having a better pricing level in the renewals from the three main contracts RIMAB has. That said, for example, the Colsubsidio contract is not only bringing new services and increasing the volumes, but it has been renewed with a price increase. The two Police Department contracts have been signed or renewed with a pricing increase, one of those with a 15% price increase. Those are the three main contracts from the RIMAB business. The reflection of this pricing increase plus the optimization of our cost structure coming from the cost out program will represent a much better margin in the near term.
Okay. I should interpret that as a trough in our gross margin.
I think also Nick, I think the loss of the customer has impacted the loss of the customer that we had in the first half. That was a material customer with good margins. That's correct, isn't it, Germán?
Yeah. Yeah, that's correct. The margins in that front are linked to the volumes. As there is a decrease in the volume, there is an effect on the margins. Now we are going into the opposite direction, winning volume. Obviously with the two other forces I mentioned, price increasing and cost reduction, there will be an improvement in the margins.
Yeah. All right. Thank you. You fixed that, and that's a lot of the work we need.
Yes, that's correct, Nick. Thank you very much.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We'll now pause a moment to allow for any final questioners to register. Thank you. We are showing no further questions at this time. I'll now hand back to Dr. Arango for closing remarks.
Thank you. Thank you all for taking the time to join us. We are excited about the year ahead and look forward to updating you on our progress. Enjoy the rest of your day.