TIDMCRW
RNS Number : 9952E
Craneware plc
13 July 2021
Craneware plc
("Craneware" or the "Company" or the "Group")
Trading Update and Notice of Results
Strong Trisus adoption and acquisition of Sentry provides
positive basis for accelerated growth
13 July 2021 - Craneware (AIM: CRW.L), the market leader in
Value Cycle solutions for the US healthcare market, is pleased to
provide an update on trading for the year ended 30 June 2021
(FY21).
The positive sales momentum experienced in the first half of the
year continued into the second half, with the Board expecting to
report an increase in New Sales of approximately 40% to over $42m
(FY20: $30.4m). In accordance with Craneware's revenue recognition
policy, the majority of the revenue resulting from both new sales
and existing contract renewal will be recognised over future
periods, providing the Group with long term visibility of revenue
under contract.
Total Revenue and adjusted EBITDA for the year is expected to
have increased by greater than 5% and 6% respectively (FY20:
Revenue $71.5m: adj. EBITDA $25.2m). The Group's customer retention
rate has remained above 90%, building the foundation for a return
to double-digit organic growth in the future .
Craneware continues to invest in the expansion of its
cloud-based Financial and Operational performance platform, Trisus,
and capitalisation of R&D costs have been maintained at broadly
the same levels as in prior years. The success of this investment
has seen 900 current customers migrate to products on the Trisus
platform.
The Group's cash reserves remain healthy, delivering a cash
conversion rate of 90%, in line with the prior year. The Group
maintains a strong balance sheet, with cash of $235.6m at 30 June
2021, including the net funds of $187.4m received from the equity
raise in anticipation of the acquisition of Sentry Data Systems
("Sentry") of Florida, (FY20: $47.9m).
Completion of Sentry Acquisition
The Group is delighted to announce today the successful
completion of the acquisition of Sentry, a leader in pharmacy
procurement, compliance and utilisation management, providing
immediate additional scale to Craneware's operations, expanding its
coverage of U.S. hospitals, enhancing its pharmacy offering and
cementing Craneware's position as a leading provider of value cycle
solutions to the US healthcare market.
Following the acquisition, Craneware now serves nearly 40
percent of U.S. hospitals and more than 10,000 clinics and retail
pharmacies across all the major pharmacy brands as well as local
community pharmacies and clinics.
With the quality and breadth of the combined data sets from both
companies, Craneware will deliver far-reaching actionable insights
for better operational and strategic decisions, enabling further
efficiencies in provider performance so Craneware's customers can
focus on serving their communities and healthcare missions.
The management team will host a presentation this morning at 9am
BST to discuss the acquisition. Any analysts or investors who wish
to join should email craneware@almapr.co.uk to register. A copy of
the presentation will be available on the Company's website
following the meeting.
Outlook
The financial challenges hospitals are currently facing,
combined with the ongoing transition to value-based reimbursement,
means the impact and insights that Craneware's Trisus platform
delivers are increasingly relevant. The global pandemic has
highlighted the importance of usable financial and operational data
and it is expected this realisation will drive further investment
by hospitals in the future.
The Group continues to see significant new opportunities
entering the sales pipeline and the Board is confident in the
Group's ability to deliver double-digit organic growth in the
future .
Notice of Results
Craneware will announce results for the year ended 30 June 2021
on 21 September 2021.
Keith Neilson, CEO of Craneware plc commented ,
"We are pleased by the continued positive sale performance in
the year and strong adoption of our Trisus platform, paving the way
for accelerated future growth.
"The successful conclusion of the acquisition of Sentry Data
Systems marks a transformational point in our journey, considerably
expanding our customer base, data sets, product offering and market
presence. Together, we will offer healthcare organisations
innovative new ways to measurably impact operational and financial
performance and generate sustainable margins that can be
re-invested in providing better care for those who are in need.
"Our expanded opportunity and positive sales momentum provide us
with considerable excitement and confidence as we work with the
Sentry team to transform the business of U.S. healthcare."
For further information, please contact:
Craneware plc +44 (0)131 550 3100
Keith Neilson, CEO
Craig Preston, CFO
Alma (Financial PR) +44 (0)20 3405 0205
Caroline Forde, Hilary Buchanan, Robyn Fisher, craneware@almapr.co.uk
Joe Pederzolli
Peel Hunt (NOMAD and Joint Broker) +44 (0)20 7418 8900
Dan Webster, George Sellar, Andrew Clark
Investec Bank PLC (Joint Broker) +44 (0)20 7597 5970
Patrick Robb, Henry Reast, Sebastian Lawrence
Berenberg (Joint Broker ) +44 (0)20 3207 7800
Mark Whitmore, James White, Alix Mecklenburg-Solodkoff
About Sentry Data Systems, Inc.
Sentry Data Systems, Inc. is a pioneer in providing technology
solutions that help healthcare providers address their three
biggest challenges: reducing total cost of care, managing
compliance and producing better quality. Thousands of hospitals and
care locations across the country rely on Sentry's integrated
platform for their solutions, which provide decision support for
millions of unique patients and have helped hospital systems and
IDNs realize billions of dollars in documented savings.
About Craneware
Craneware (AIM: CRW.L), the leader in automated value cycle
solutions, collaborates with U.S. healthcare providers to plan,
execute and monitor financial and operational performance so they
can continue to drive better outcomes for the communities they
serve. Craneware's Trisus platform combines revenue integrity, cost
management and decision enablement into a single SaaS-based
platform. Our flagship solution, Chargemaster Toolkit(R),
continually earns KLAS recognition in the Revenue Cycle -
Chargemaster Management category and is part of our value cycle
management suite, which includes charge capture, strategic pricing,
claims analytics, patient engagement, revenue recovery and
retention, and cost and margin intelligence solutions.
Craneware's Pharmacy ChargeLink solution helps U.S. healthcare
providers ensure that administered hospital medications are
accurately coded, billed and reimbursed at an optimal level.
Business algorithms compare units purchased with the volume billed
and reimbursed to help organisations more quickly identify charge
capture problems and better manage potential compliance risks.
Learn more at craneware.com.
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