Craneware
plc
("Craneware", the "Craneware Group", the "Company" or the
"Group")
FY24 Trading Update and
Notice of Results
18
July 2024 - Craneware (AIM: CRW.L), the market leader in Value Cycle
solutions for the US healthcare market, today
provides an
update on trading for the year ended 30 June 2024
(FY24).
The Board is pleased to announce a
positive year for the Group. The ongoing investment in the Trisus
platform has delivered a good sales performance in the year and,
combined with our partner programs, we have delivered significant
returns to the Group's US healthcare provider customer base. As a
result, revenue for the year is expected to exceed $188m which is
above the upper end of current market expectations, an 8% increase
over the prior year (FY23: $174.0m). The Group also expects to
deliver an adjusted EBITDA of at least $58m, a 6% increase over the
prior year (FY23: $54.9m) and towards the top end of market
expectations, continuing its delivery of an above 30% EBITDA
margin.
This healthy sales performance and
continued high levels of customer retention have delivered growth
in Annual Recurring Revenue1 (ARR) to $172m (30 June 2023:
$169m), with additional growth expected as more of the sales and
partner success convert to ARR.
Strong balance sheet and accelerated
debt reduction
The Group's high levels of cash
generation have allowed ongoing investment in the future of the
business while at the same time the Group has:
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Reduced its total bank debt to
$35.4m (FY23: $83m), a further $40m above its normal scheduled
repayments
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Returned $12.8m to shareholders
(FY23: $12.1m) by way of dividends;
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Completed c.$3.3m of share purchases
through both the announced share buyback and purchase of shares by
the Employee Benefit Trust.
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The Group has also retained healthy
cash reserves of $34.6m at 30 June 2024 (FY23: $78.5m).
Outlook
The strong sales performance during
the year demonstrates the strength of the Trisus platform,
increasing partner success and the unique position the Group holds
in its market.
The breadth of solutions the
Craneware Group can provide though its Trisus platform, combined
with the new market opportunities, accelerated innovation and
exploration of new AI-based applications that will result from the
recently announced alliance with Microsoft, give the Board
confidence in the Group's ability to provide the insights its
customers need to deliver greater value healthcare to their
communities.
The Group's balance sheet strength,
high levels of ARR and returns generated for our customers, leave
the Group well positioned for FY25 and beyond.
Notice of Results
Craneware will announce its results
for the year ended 30 June 2024 on 3 September 2024.
Keith Neilson, CEO of Craneware plc,
commented,
"The drive for better value in healthcare continues to
dominate strategic priorities within the US healthcare market. Our
positive financial results reflect the demonstrable impact the
Craneware Group can make, in helping our customers meet these
priorities.
The exciting growth and expansion opportunities that our new
alliance with Microsoft brings to the Group, combined with our
continued investment in the Trisus platform, the considerable data
assets we maintain, and our independence within the US healthcare
market mean we are uniquely placed to support all US hospitals.
Supported by a strong balance sheet, high levels of revenue
visibility and the partnerships and alliances we are developing, we
are confident this year's healthy performance is evidence of the
expanded and long-term opportunities that are ahead of
us."
Notes
1 Annual Recurring Revenue
("ARR") includes the annual value of licence and transaction
revenues as at 30 June 2024 that are subject to underlying
contracts and where revenue is being recognised.
For
further information, please contact:
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Craneware plc
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+44 (0)131 550 3100
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Keith Neilson, CEO
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Craig Preston, CFO
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Alma Strategic Communications (Financial PR)
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+44 (0)20 3405 0205
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Caroline Forde, Joe Pederzolli,
Kinvara Verdon
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craneware@almastrategic.com
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Peel Hunt (NOMAD and Joint Broker)
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+44 (0)20 7418 8900
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Neil Patel, Benjamin Cryer, Kate
Bannatyne
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Investec Bank PLC (Joint Broker)
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+44 (0)20 7597 5970
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Patrick Robb, Henry Reast,
Shalin Bhamra
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Berenberg (Joint Broker)
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+44 (0)20 3207 7800
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Mark Whitmore, Richard
Andrews, Dan Gee-Summons
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About Craneware
The Craneware Group (AIM:CRW.L), is
the market leader in value cycle solutions. For 25 years, we have
collaborated with U.S. healthcare providers to optimize revenue
integrity, pricing intelligence, decision support, labor
productivity, business of pharmacy, and 340B program
management.
Customers choose Trisus®, a HITRUST-
and SOC2 Type II-certified, SaaS-platform, to achieve operational
and financial excellence in pursuit of their healthcare mission -
delivering quality care to their communities. The Craneware Group -
Transforming the Business of Healthcare.
Learn more at www.craneware.com