Integumen and Parity reach multi-year AI deal
By Josh White
Date: Wednesday 13 Nov 2019
(Sharecast News) - Integumen has signed heads of terms with Parity to enter a multi-year framework agreement to be completed on or before 18 December, it announced on Wednesday, for the supply of artificial intelligent (AI) software across Parity's NHS, central government and private institutional clients.
The AIM-traded firm said the agreement would create an opportunity to cross-sell intelligent data management, with a focus on proving return on investment to Parity's more-than-150 institutional clients.
It said the software included full GDPR compliance, with secure cloud data migration from existing legacy systems to a digital workplace through the encrypted 'Drive4Growth' AI platform, powered by Integumen's 'Rinodrive'.
The company said the deal would bring recurring shared revenue streams for both Parity and Integumen in 2020, and provide a value-added proposition in demand from Parity clients, with three-to-five year annual contracts.
It would also give it "immediate access" to 150 public and private institutional clients, with Parity being described as a trusted approved vendor for government and the private sector for more than 45 years.
In May, Integumen acquired Rinocloud for £3m, to enable its 'LabskinAI' platform to use Rinodrive AI to provide cloud-based data services to Integumen's top 20 global skincare clients.
By the end of June, Rinocloud reached monthly profitability, and over the last six months it exceeded revenue from Labskin in the current financial year.
Looking ahead, Integumen said that since 2018, it had seen average sales grow from £5k for consumable, one-off sales to 2019 average sales of £50k as a service contract.
Heading into 2020, the company said it was engaging with multiple top 20 global skin and personal care companies, and believed average sales were likely to range between £100k to £500k for data-as-a-service to skincare research and development framework multi-year agreements, providing "good visibility" of revenue.
As a result, excluding developments that could arise from Integumen entering into the agreement with Parity Group, the company said it was guiding 2020 revenues of £4m.
"We are delighted to be able to roll-out the Drive4Growth AI platform in partnership with the credibility and reputation that Parity data experts hold, with an extensive, if not exhaustive, list of public and private institutions," said Integumen chief executive officer Gerard Brandon.
"We look forward to working alongside Parity to extract greater value for their clients and contribute to the transformation of the UK's National Health Service, public and private institution data over the next few years."
Matthew Bayfield, CEO of Parity Group, added that his company was "pleased" to be partnering with Integumen and rolling out the Drive4Growth AI platform to its client base.
"We have been working with many of the same clients for 45 years, so we understand their needs.
"With healthcare sector data growth in 2020 expected to double every 73 days, our clients need to securely manage and extract greater value using analytics and AI in order to make important decisions," Bayfield explained.
"The Drive4Growth AI platform delivers on those requirements, increases revenue per client, increases client contract term and generates a higher margin, leading to greater profitability."
At 1025 GMT, shares in Integumen were up 7.77% at 1.91p, while Parity Group was 2.86% higher at 7.2p.
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