DXS International interim report highlights resilience and innovation amid NHS challenges
( ) , a software company providing clinical decision support solutions, issued its unaudited interim results for the half year ended October 31, 2023.
DXS saw revenues rise by 2.5% to £1.694m from £1.652 a year ago. The group reported a loss after tax of £121k, from a £28k profit in 2022, largely due to increased amortisation, increased interest charges, and reduced tax benefit.
Amortisation was £570k compared to £354k in 2022, a 61% increase in line with DXS' policy since 2019 of amoritising R&D development. Cash at period-end was £386k from £371k in 2022, and R&D credits on ordinary activities were down by 14% due to changes in HMRC allowances.
Operationally, the company saw a highly positive initial reaction to its new SMART Referral solution prototype. Additionally, a formal evaluation of i4i Hypertension was completed, showing that the ExpertCare solution can significantly improve efficiencies for managing high blood pressure.
Post-period on November 30, 2023, DXS announced it had won a UK Innovative Grant jointly with Health Innovate East worth £409k to help accelerate ExpertCare's route to market. The grant includes the addition of cholesterol and diabetes to the technology platform. The 18-month project commenced on December 1, 2023.
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An expected set of results form DXS International, showing a small increase in revenue and continued innovation in helping the NHS achieve greater efficiency. Sales were slow as a result of DXS' business pipeline being hindered as the NHS Central Funding pot, on which its solutions largely depend, remained frozen while awaiting internal NHS renewal processes to be finalised.
Until the fund is made available again, DXS' ability to achieve its previously stated market guidance on turnover, which was anticipated at £3.8m by April 2024 and £4.7m by year-end 2024, will be delayed. Further guidance on this is expected in April, but it should not affect long-term sales.
As a counter to the temporary hindrance the company has innovated new ways of securing NHS contracts, eg gaining 3rd party evidence to prove ROI to the NHS; offering a risk sharing and reward model to the NHS by receiving significant upside on NHS-set targets, and providing services to overcome the NHS resource shortage challenge.
DXS has also diversified into other formal collaborations, such as the abovementioned partnership with Health Innovate East on a UK Innovative Grant for ExertCare. DXS continues to innovate as it readies its new SMART Referral solution prototype, which was estimated by an independent health economics study to have a potential budget impact of £44m net saving to the NHS.
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