Craneware plc Trading Update, Contract Win and Notice of Results (3413D)
July 06 2016 - 1:00AM
UK Regulatory
TIDMCRW
RNS Number : 3413D
Craneware plc
06 July 2016
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update, Significant Contract win and Notice of
Results
6 July 2016 - Craneware (AIM: CRW.L), the market leader in Value
Cycle solutions for the US healthcare market, provides an update on
trading for the year ended 30 June 2016.
The Board is pleased to confirm the Group's third consecutive
year of record sales performance and a return to double digit
growth at the revenue and adjusted EBITDA level.
The Group has seen greater than 60% growth in the value of 'New
Sales' contracts signed of c$58m (2015 $35.9m) with the average new
contract length being maintained at 5 years.
Included in the year's sales success are two significant
contracts. The first announced on 2 February 2016 was for a 50
hospital group in excess of $7.5m revenue over its five year life.
In addition to this the Company is pleased to announce that it
finished the year with a further multi-hospital group contract win.
Starting in FY17, the contract is expected to deliver revenue
greater than $8m during the next five years, as the hospital
network rolls out multiple Craneware core value cycle
solutions.
In accordance with the Company's revenue recognition policy, the
majority of the revenue resulting from all sales will be recognised
over future periods, adding to the Group's long term visibility of
revenue under contract. Accordingly the Group expects to report an
increase of 11% in revenues and 10% in adjusted EBITDA for the year
ended 30 June 2016.
Other key performance indicators continue to be positive. The
Group continued to renew hospitals that were due for renewal in the
year at an average of above 100% (by $ value) and customer
retention continues to be significantly higher than the industry
norm.
Strong cash generation resulted in cash reserves in excess of
$47m at 30 June 2016 (2015 $41.8m).
Keith Neilson, CEO of Craneware plc commented, "US Healthcare
providers continue to address the challenges the new value based
re-imbursement environment brings. We believe our continued sales
growth demonstrates the strategic importance of Craneware and its
Value Cycle solutions to them as they meet these challenges. The
ongoing investment we are making to develop solutions that
discover, convert and optimise value for healthcare providers,
combined with our own historical sales successes, double digit
revenue and adjusted EBITDA growth, give management confidence in
its ability to deliver continued future growth as well as
increasing stakeholder value."
The Company will announce its Full Year Results on 6 September
2016.
For further information, please contact:
Craneware plc Peel Hunt Alma
+44 (0)131 550 +44 (0)20 7418 +44 (0)208 004
3100 8900 4218
Keith Neilson, Dan Webster Caroline Forde
CEO
Craig Preston, Adrian Trimmings Hilary Buchanan
CFO
About Craneware
Craneware is the leader in automated value cycle solutions that
help US provider organisations discover, convert and optimise
assets to achieve best clinical outcomes and financial performance.
Founded in 1999, Craneware has headquarters in Edinburgh, Scotland
with offices in Atlanta, Boston and Phoenix employing over 200
staff. Craneware's market-driven, SaaS solutions normalise
disparate data sets, bringing in up-to-date regulatory and
financial compliance data to deliver value at the points where
clinical and operational data transform into financial
transactions, creating actionable insights that enable informed
tactical and strategic decisions. To learn more, visit
craneware.com and thevaluecycle.com .
This information is provided by RNS
The company news service from the London Stock Exchange
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