Talius Group - June 2024 Quarterly Report - 23 July 2024

Quarterly Performance

Talius Group Limited (Talius or the Company) has reported a positive operating cash flow for the quarter ending 30 June 2024. Cash receipts from customers totaled $2.1 million, and the company ended the quarter with $1.3 million in cash and cash equivalents. This marks an improvement over the prior period, despite the first half of the year falling short of initial expectations.

Material Orders and Sales

During the quarter, Talius received substantial orders that have established a solid trajectory for growth through Q3 and beyond. Notably, on 30 April 2024, Talius announced a material Frame Order from Hato Hone St John (HHSTJ) for the purchase of 13,500 Personal Emergency Response Systems (PERs) units, with a forecasted revenue of over $4 million. Additionally, on 11 June 2024, Talius received its first Purchase Orders (POs) from ADT in New Zealand, totaling 5,000 PERs units with a forecasted revenue of over $1.5 million.

Sector-Specific Developments

In the retirement villages sector, Talius has completed the final stage PERs rollouts for several providers and upgraded over 25,000 homes and apartments in preparation for the 3G network shutdown. In the residential aged care sector, Talius has been involved in various projects, including the Best Care Research Project in partnership with CSIRO and the ACH Group's 'Vita' project in Adelaide.

Home and Community Care

Talius is actively collaborating with home care providers to develop data-enabled care strategies in response to new government reforms. The Care@home Kits, utilizing IoT data sensors, have been introduced to enhance the quality of care without compromising privacy. A pilot program with the Whiddon Home Care team in Sydney is currently underway.

Subscriptions Growth

Talius continues to witness encouraging growth in service subscriptions, now surpassing 35,000. Recurring subscription revenues have grown to $2.4 million annually and are expected to further expand as more project sites become operational.

Marketing and Industry Events

Talius has been active in expanding its brand visibility through marketing initiatives and participation in industry events. Highlights include hosting an event at the Melbourne University Validitron SimLab and showcasing new developments at the Digital Health Festival 2024 and the OTX Conference in Perth.

Research and Development

Significant milestones have been achieved in enhancing Talius' technology platform. The R&D team has transitioned the database to Databricks and made substantial progress on the Talius Track RTLS platform, providing real-time data insights into movements and interactions within care facilities.

Financial Position

Talius recognized revenue of $2.1 million for the quarter, an increase of 67% from the previous quarter. The company recorded a positive operating cash flow and closed the quarter with $1.3 million in cash. Operating cash outflows were $2.08 million, with significant expenditures on inventory, R&D, and staff costs.

Completion of Buy Back

During the quarter, Talius completed a 'unmarketable parcel share buy-back,' reducing registry and administrative costs. The buy-back involved purchasing 8,980,646 ordinary shares, representing approximately 43.7% of the company's total shareholders.

Key Staff Movements

Talius announced the appointment of Arun Malazahargan as National Operations Manager, bringing extensive experience in operations and project management. Additionally, Mr. Carter resumed his role as Non-Executive Director following his re-election to the board.