News blog

Avia Health Informatics

• BY: Andrew Hore |
• POSTED: 27/11/2012 |

Delays in the forming of Clinical Commissioning Groups (CCGs) have hampered the progress of healthcare software provider Avia Health Informatics in the six months to September 2012 but it is more confident about the future despite a shortage of cash.

Losses should be lower in the second half and Avia believes it can be profitable in 2013-14. CCGs are completing the process of gaining NHS authorisation and budgetary control and the market should improve next year.

Interim revenues declined from £1.03m to £853,000 but lower costs meant that the loss was slightly lower at £478,000. Avia had £137,000 in the bank at the end of September 2012. The first half cash outflow from operations was £301,000. There are more cost savings to come through.

Before the end of the period, Advanced Computer Software (ACS) invested £350,000 in the form of a convertible loan, which will become a 29.9% stake if ACS decides to convert. There is no interest charge but the loan is secured over Avia’s assets. The loan lasts for three years.

At 7.25p a share, down 0.88p, Avia is valued at £460,000.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFNovember2012_38.pdf