Doctor Care Anywhere

Apr 27, 2023

Doctor Care Anywhere's Aussie Board steps down amid mass layoffs and renewed UK focus With a super on-the-nose name, it’s difficult not to know what UK-based telehealth company Doctor Care Anywhere (ASX: DOC) does. Providing people consultations no matter where they are, the Company seems to have received public favour, with a spurt in the number of returning customers and thriving subsidiaries. At the same time, this was probably made possible as it undertook layoffs, reduced R&D spending and changed leadership after a sad 2022. As a result, Doctor Care Anywhere is making positive strides in its drive towards cash break even by 2024, with total operating and investing cash outflows reducing by $600k QoQ and $4.3 million versus PCP. Customer cash receipts increased by 4.8% quarter-over-quarter due to increased appointment volumes. This is also a 5.2% increase over PcP, which was also driven by the number of appointments. However, the contracted average consultation price with AXA was cut to reflect the expected clinician mix. Doctor Care Anywhere delivered over 180k consultations. It reported cash receipts from customers worth over $15 million, up over 5%. Its Eligible Lives customers, that is, those entitled to using DOC’s services, were up 7.1%, with Activated lives, i.e. the new sign-ups, up 25.6%. Secondary care journeys have increased by 37.6%, with more repeat patients coming to DOC. There was a heavy reduction in staff costs, amounting to nearly 36%, as the Company reduced its headcount in line with the ongoing trend. A part of the reduced headcount was its Board of Directors based in Australia, including Richard Dammery, Simon Calver and Vanessa Wallace. The leaders found it difficult to run the Company in the UK all the way from Australia. The Board will be UK-focused going forwards in line with its strategic plans. When stepping down during the annual general meeting, Dammery commented, “There can be no doubt that 2022 was a challenging year for the Company, in a sector which has lost significant market support, globally, compared to 2020 and 2021. Levels of market support and access to capital are extremely challenging.” The overall cash inflow for the business in the March quarter was $6 million, an increase of $14.1 million from Q4 2022 but this was primarily due to the receipt of $13.5m under the AXA loan facility.