HomeStay Care Capitalising On The Expanding Aged Care and Disability Sectors In Australia

HomeStay Care Capitalising On The Expanding Aged Care and Disability Sectors In Australia

HomeStay Care Pty Ltd (ASX: HSC) provides technology enabled care to the aged care and disability sector. The company designs and develops a technology platform through which it provides home senior care services for managing work including cleaning, gardening, pet services, transportation, laundry, grocery, and home maintenance solutions. Utilizing human monitoring and data analysis, it is engaged in determining residents’ routines and detect anomalies, thereby enabling the elderly Australians to live independently and longer in their homes.

Source: Company’s Website

 

Partnership with St John of God Health Care

Recently on 20 June 2019, Healthcare technology provider, HomeStay Care announced to have established a partnership with St John of God Accord to build a new start-of-the-art house , designed specifically for people who have an intellectual disability and complex needs.

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St John of God Health Care, established in Western Australia in 1895, is one of the largest Catholic providers of healthcare services in Australia. It operates as a not-for-profit private healthcare group with a staff of around 13,950 employees across New Zealand, Australia, as well as the Asia Pacific region. The Group provides home nursing, disability services and social outreach programs.

As per the deal, HomeStay would deploy its proprietary technology, ‘Caring Intelligent Home system’ in St John of God’s new house at the Mavis Avenue in Brighton, Victoria. The house is scheduled to open in the going week while the residents would be moving in by the month end.

Source: Company’s Corporate Overview, May 2019

 

The Caring Intelligent Home system includes an emergency hub; movement, bedroom and bathroom door remote sensors, the Carers’ Companion app that offers quality one-to-one time for the carer and the resident with an intellectual disability. Besides, it also has a MyDay app that stimulates a sense of controlled independence and reduction in the anxiety levels for the resident.

The new house forms part of the Lifestyle Blueprint Project by St John of God and its structure conforms to the High Physical Support minimum requirements, defined by the Specialist Disability Accommodation design category published by the NDIS Quality and Safeguards Commission. Besides, it is also in accord with platinum level design guidelines by Liveable Housing Australia.

HomeStay Care’s Management is of the view that the Mavis Avenue house is exemplary in demonstrating the ability of organisations to work together and offer technology focused accommodation for clients to suit their specialised living requirements.

Leadership Strengthening

HomeStay Care reported a successful and busy quarter ended 31 March 2019 as it strengthened its board and management team, while rolling out its growth strategy. The key appointments included Mr. Wayne Cahill as Non-Executive Chairman, Mr. Manoj Chandra as Chief Technology Officer (CTO) and Ms. Philippa Lewis as Interim Chief Executive Officer.

HomeStay Care Pty Ltd recently informed the stakeholders that the company had appointed Philippa Lewis as CEO for a further 12 months. The 12-month contract period began on 1 June 2019, transitioning from the initial three-month interim appointment for which Ms. Lewis originally agreed to lead the company.

Ms. Lewis brings over 25 years of experience in the health, aged care and medtech sectors. She has been a founder and CEO of several successful private and listed medtech companies in the aged care sector in Australia, New Zealand, Europe and North America.

According to Ms. Lewis, as the population ages and the industry deals with the findings of the Royal Commission into Aged Care Quality and Safety, HomeStay is in an excellent position to provide meaningful solutions that empower clients in the aged care and disability sectors.

March 2019 Quarterly Results (Q1 FY19)

Commercial Partnership with Enrich Living– In March 2019, HomeStay Care entered into a commercial contract with Enrich Living Pty Ltd, targeting to install the Intelligent Home platform technology in up to 1,000 aged care homes with Enrich Living Services within 18 months.

Installations have commenced for the first 100 units with initial project revenue generated in Q1 2019. The total revenue from the rollout, if the company records mid-tier purchases, will potentially range from $ 200,000 for the first 100 homes to up to $ 2,000,000 for 1,000 homes.

‘Go live’ trial of applications- During the quarter, HomeStay also commenced a go-live trial of its MyDay and Carers Companion apps for the St John of God Health Care– Enabled Lifestyle Blueprint Project.

The trial house in Melbourne is fitted with motion sensors, apps and voice assistants powered by artificial intelligence (AI) and more fit-for-purpose innovations for people with cognitive issues and secondary conditions, such as epilepsy, cerebral palsy and blindness. The technology installed would allow St John of God Health Care to collect key metrics and utilise data analytics to support decision making and prioritise one-on-one care.

The customer receipts in Q1 2019 amounted to $ 41,505 reflecting early momentum from customer demand.

Corporate Overview May 2019

HomeStay Care’s latest Corporate Overview highlighted its growing market opportunity; Aged Care and Disability (NDIS) sectors are two large growing markets (Initial Total Addressable Market size of $ 580 million) with a government funding of $ 40 billion.  As per company’s estimates, around 3.7 million Australians are over 65, expected to reach 6.5 million by 2030; ~ 4.1 million disabled Australians are now funded federally.

The company considers itself as strongly positioned to provide right technology to older and disabled people, thereby enabling them to live with greater independence.

Source: Company’s Corporate Overview May 2019

The company operates via different channels to the market illustrated below.

Source: Company’s Corporate Overview May 2019

 

Outlook for FY19 and strategy forward

At the company’s Annual General Meeting held in end-May 2019 for the year ended 31 December 2018, Chairman Wayne Cahill provided an outlook for the way ahead for the company which is focussed on converting its strong sales pipeline of new business opportunities to drive commercial orders in the short term.

The Chairman is confident that HomeStay, with its recent activities and progress, is well placed to capitalise on and benefit from the evolving landscape in the Aged Care and Disability sectors. There is already a strong market for preventative care solutions that is anticipated to expand as the current Royal Commission into Aged Care Quality and Safety examines ways to most effective use of technology.

Source: Company’s Corporate Overview May 2019

 

Stock Performance

HomeStay Care has a market capitalisation of ~ AUD 13.9 million with approximately 695 million shares outstanding. The HSC stock last traded on 24 June 2019 at AUD 0.020.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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