Tiny AIM-listed healthcare information systems player, Clinical Computing, continued to struggle in the year to 31 December 2010. Total revenues decreased by 7% to £2.97 million and, at the operating level, the company remained in loss, albeit improved from £220K to £74K. However, as at the half year (see Clinical has ‘vision’ for cash and profits), cash receipts from the UK R&D tax credit enabled the Group to report post-tax profits of £181K.
Howard Kitchner, Chairman of Clinical Computing (who is stepping down to be replaced by Professor Gerald Musgrave, though remaining a non-exec, with immediate effect), comments, “We now have two businesses which, when taken together, are capable of delivering improving results”. However, over FY10, the performance of those two businesses was poles apart. The acquired Hydra business, which provides management information software and represents 36% of Group revenues, was the star of the show with revenues up 41% and an operating margin of 29%. While the core Clinical Solutions business saw revenues fall by 21% and was loss making at the operating level. For Clinical, the US was the dog, and, representing 63% of Clinical’s revenues, pulled the total numbers down. Revenues fell a whopping 30% and the operating loss was £719K. Actually the UK business delivered growth of 1% despite the challenging market.
Nonetheless, the Clinical business is doing a hell of a lot of interesting and sensible stuff. For example the clinicalvision business providing electronic medical records for chronic illnesses – now the core focus – released its first ‘App’ to enable users to access patient information on the iPhone of iPod Touch (perhaps, the iPad will come in the next phase of its “mobile device initiatives”?) It also launched its cloud computing solution in the US and Canada. Such initiatives will make the Clinical Solutions business even more interesting to potential suitors looking to add healthcare applications to their portfolios. It might not be long before Hydra can come out of the shadows and shine on its own.