Good morning, it’s Paul and Jack here with the SCVR for Thursday.

Timing - update at 13:15 - mostly done for today. The sun has just tentatively appeared, so I'm downing tools now to stretch my legs, as lockdown in foul weather is sending me stir-crazy! Let's say all done for today, but I might cover a few more things this evening, for tomorrow's report.

Paul's Section:

Agenda - I prepared some sections last night:

Craneware (LON:CRW) - trading update FY 12/2020

Getbusy (LON:GETB) - trading update FY 12/2020

Air Partner (LON:AIR) (I hold) - trading update FY 12/2020

On to today's trading updates/results:

Somero Enterprises Inc (LON:SOM) - a sparkling end to FY 2020

Sanderson Design (LON:SDG) (I hold) - Trading update for FY 01/2021 - ahead of expectations

Headlam (LON:HEAD) (I hold) - Strong H2 recovery & resumption of divis


Begbies Traynor (LON:BEG) - red flag report

Zotefoams (LON:ZTF) - Operational & trading update

Craneware (LON:CRW)

2240p (up 2.3% yesterday) - mkt cap £601m

Trading Update

20 January 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 six months ended 31 December 2020 (H1 FY21).
“Strong performance”

H1 revenue & adj EBITDA up >5% on LY H1

Customer retention rate above 90%

… building the foundation for a return to double-digit growth in the future.

Long-term visibility of contract revenues

Capitalising R&D at similar levels to prior periods

Cash reserves “healthy”

Good cash conversion

Confident of meeting market expectations for FY 06/2021, with a useful footnote -

1 Company compiled, publicly available market expectations comprises the published estimates of 5 analysts from Peel Hunt, Investec, Berenberg, Panmure Gordon and N+1 Singers. For FY21: Revenue of $74m (range $71.5m to $76m) and Adjusted EBITDA of $25.3m (range $23.7m to $27m)

My opinion - it’s a good quality business, but growth seems a bit pedestrian. Forward PER of 45 suggests investors must see upside against existing forecasts. The share price has done well recently, it looks very expensive now. I’d want much faster growth to justify paying such a high multiple.



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