REG - Craneware plc - FY25 Interim Results
11/03/2025 07:15
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RNS Number : 0825A Craneware plc 11 March 2025
Craneware plc
("Craneware" or the "Company" or the "Group")
FY25 Interim Results
Record interim financial results, with a return to double-digit growth rates
11 March 2025 - Craneware (AIM: CRW.L), a leader in healthcare financial
performance solutions, is pleased to announce its unaudited results for the
six months ended 31 December 2024 (H1 FY25).
Financial Highlights (US dollars)
H1 FY25 H1 FY24 Change
Group revenue $100.0m $91.2m +10%
Adjusted EBITDA(2) $30.3m $27.5m +10%
Adjusted Profit before tax(3) $20.6m $17.0m +21%
Statutory Profit before tax $10.1m $5.9m +71%
Adjusted Basic EPS 50.6 cents 42.8 cents +18%
Basic EPS 20.7 cents 11.6 cents +78%
Annual Recurring Revenue(1) $177.3m $171.4m +3%
Operating cash conversion(4) 110% 91% +19pps
Total cash and cash equivalents $72.2m $63.9m +13%
Total bank debt $31.6m $59.2m -47%
Interim dividend 13.5 pence 13.0 pence +4%
(1) Annual Recurring Revenue includes the annual value of licence and related
recurring revenues including transaction revenues as at 31 December 2024 that
are subject to underlying contracts and where revenue is being recognised at
the reporting date
(2) Adjusted EBITDA refers to earnings before interest, tax, depreciation,
amortisation, share based payments and acquisition and integration related
costs
(3) Adjusted profit before tax refers to profit before tax, amortisation of
acquired intangibles and acquisition and integration related costs
(4) Operating Cash Conversion is cash generated from operations for the
rolling 12 month period, adjusted to exclude cash payments for exceptional
items and movements in cash held on behalf of customers, divided by adjusted
EBITDA for the same 12 month period
Highlights
· Strong financial performance, delivering record interim Group revenue and
Adjusted EBITDA, with a return to double-digit growth rates
· 18% growth in adjusted basic EPS and increased operating cash conversion
resulted in Group cash reserves growing to $72.2m (H1 FY24: $63.9m) and a
reduction in bank debt to $31.6m (H1 FY24: $59.2m), in addition to funding
dividends
· Future growth remains underpinned by high levels of ARR and strong customer
retention at above 90% across all measures
· Continued expansion and cross-sales to all hospital strata, with Net Revenue
Retention ("NRR") greater than 100%
· First major customer contract executed via the Azure Marketplace, as part of
the previously announced alliance with Microsoft
· Continued investment in R&D and innovation to capitalise on growing market
opportunity
· Development of AI enhancements to existing offerings in conjunction with
Microsoft, including the launch post period end of Trisus(®) Assist, an
AI-powered personal assistant providing workflow help, healthcare coding
research and persona-based compliance prompt engineering
· Further strengthening of the Board through the appointment of two experienced
US healthcare executives as Non-Executive Directors
· Trisus(®) Chargemaster ranked first in the "2025 Best In KLAS Awards:
Software & Services" for the 14th time, underlining Craneware's
long-standing position as a healthcare technology industry leader
Current Trading and Outlook
· Positive trading has continued into the second half of the year
· The Board remains confident in its outlook for FY25 and expects to deliver
results for the year ending 30 June 2025 in line with current market
expectations
· Longer-term, the Board continues to see considerable opportunity, reflecting
Craneware's strong market positioning and the significant size of the overall
market, providing the potential for further growth acceleration, in line with
the Company's ambitions
Keith Neilson, CEO of Craneware plc, commented,
"We are pleased to have delivered record interim financial results, reflecting
the successful execution of our growth strategy. Our trusted position at the
heart of the US healthcare market is translating into double digit growth
rates, as we support our customers in the transformation of their operations
and finance through our software and data driven insights.
"Following the US election, hospitals are now expecting a period where they
can focus on their fundamentals and make investments to drive strategic
growth, which we anticipate will provide a sustained demand environment for
our offerings.
"The continued expansion of our Trisus platform, increasing engagement from
major players within the US healthcare market and strong financial foundations
mean we are well placed to execute on our ambitious growth strategy, as we
support our customers in transforming the business of healthcare."
For further information, please contact:
Craneware plc +44 (0)131 550 3100
Keith Neilson, CEO
Craig Preston, CFO
Alma Strategic Communications (Financial PR) +44 (0)20 3405 0205
Caroline Forde, Kinvara Verdon, Sarah Peters craneware@almastrategic.com
Peel Hunt (NOMAD and Joint Broker) +44 (0)20 7418 8900
Neil Patel, Benjamin Cryer, Kate Bannatyne
Investec Bank PLC (Joint Broker) +44 (0)20 7597 5970
Patrick Robb, Virginia Bull, James Smith
( ) ( )
Berenberg (Joint Broker) +44 (0)20 3207 7800
Mark Whitmore, Richard Andrews, Patrick Dolaghan
About The Craneware Group
For over 25 years, The Craneware Group (AIM:CRW.L) has been a leader in
healthcare financial and operational transformation, delivering cutting-edge
technologies that drive measurable impact. Our Trisus(®) cloud ecosystem
unifies data, revenue intelligence, margin intelligence, and advanced
analytics, enabling healthcare organizations to optimize performance, improve
financial sustainability, and drive strategic growth.
As a trusted Microsoft partner, we provide future-ready solutions-including
the Best in KLAS Trisus Chargemaster-that simplify the complexities of
healthcare finance and operations. What sets us apart is our unique
combination of deep healthcare expertise and engineering excellence,
positioning us as a strategic partner rather than just a technology provider.
The Craneware Group empowers healthcare organizations to achieve sustainable
financial success while delivering better outcomes for the communities they
serve-today and in the future. Together, we are transforming the business of
healthcare.
Learn more at www.thecranewaregroup.com (http://www.thecranewaregroup.com)
Business Review: A return to double digit growth
We are pleased with these record interim financial results, reflecting the
successful execution of our growth strategy. Our trusted position at the heart
of the US healthcare market is translating into double-digit growth rates, as
we support our customers in the transformation of their operations and finance
through our software and data driven insights.
Group revenue exceeded $100m in the first half for the first time, growing
10%, driven mainly by expansion with existing customers, and new customer
wins. We have maintained our robust EBITDA margins and strict financial
discipline, using our strong cash generation to invest into our expanding
product portfolio, reduce debt and interest costs, and increase our dividend
whilst retaining healthy total cash reserves.
The opportunity ahead of us is considerable and growing. For over 25 years,
The Craneware Group has turned data into actionable insights, to support
sustained operational and financial success for our customers. The strong
Return on Investment that our solutions deliver has facilitated steady
customer growth, and we are proud to count approximately 40% of all US
hospitals and associated pharmacies as customers. However, our ambition is to
be ubiquitous in all US hospitals, and we will do this through sustained
innovation, combining our healthcare expertise, wealth of independent
healthcare data and engineering excellence to develop solutions that enhance
our customers' business performance.
The first half of the year has seen a considerable step forward in this
regard. Our teams are working alongside Microsoft in the area of AI
innovation, and joint marketing initiatives around these enhanced offerings
have now commenced. Meanwhile we have strengthened our relationship with
Oracle, completing the integration of our Oracle and Azure-based technology
stacks, providing the ability for greater data flow and analysis, which will
in turn support ongoing product innovation.
The strength of our offerings, our deep healthcare specialism and data,
breadth of customer base and growing partnerships, provide us with confidence
in the continued successful execution of our growth strategy.
A positive sales performance
Following the election, US hospitals are now expecting a period where they can
focus on fundamentals and make investments to drive strategic growth,
providing a sustained demand environment for our offerings.
The period has seen a particularly strong cross-sale performance, with
Business of Pharmacy leading the way and generating significant expansion
sales to our existing customers. With record expansion sales of 98% of our
total 'new' sales (H1 FY24: 78%), we continue to benefit from the investments
made into our cloud platform and the increased upsell ability it provides.
Customer wins and expansions secured in H1 include:
· Southwest Health System - 4 year contract with 6 figure Total Contract Value
(TCV) for Trisus Business of Pharmacy Optimization Suite, to improve their
340B benefits program in support for their community focused projects and our
pharmacy analytics solutions to optimize their financial management of their
medications.
· Midsize Midwest Health System - 5 year contract for a 7-figure TCV, opting to
convert their 340B Program from a competitor to The Craneware Group to
overcome the current obstacles faced with pharmaceutical manufacturer
restrictions and the negative impact on their 340B Benefit threatening their
ability to appropriately support their patient population.
· A number of Trisus Pricing Integrity Optimization Suite expansion sales,
outside of the customers' renewal times, due to increasing pressures to manage
their pricing strategy and ensure that they have strategic and defensible
pricing to support the CMS pricing transparency mandates.
· A large 100+ Health System in the West expanded our Trisus Chargemaster
Solution to a recently merged smaller Health System and extended their
agreement for 5 additional years, resulting in a 7 figure TCV.
Customer retention remained high at over 90% across all metrics (hospital
numbers, customer numbers and number of products), which we continue to
believe represents market leading levels which drove an NRR of greater than
100%.
This positive sales performance and ongoing high customer retention provides a
strong basis to build momentum as we enter the second half of the year.
A considerable opportunity ahead and positive market backdrop
With over $177m in ARR, derived from approximately 2,000 hospitals and
associated pharmacies, we have a strong platform for future growth. We will
continue to expand the offerings on our Trisus platform, both through in-house
innovation and partnership opportunities, aiming to grow our addressable
market and increase share of customer wallet.
We see three categories of potential growth catalysts:
· In the near term, we expect to see continued expansion with existing customers
as they adopt an increasing number of solutions from within our Optimization
Suites. This represents a significant revenue opportunity of approximately
7.5x current revenue run rate;
· In the medium term, we believe our Microsoft Alliance has the ability to
increase our rate of penetration into the wider market, accelerating our rate
of new customer acquisitions through further endorsing the quality of our
solutions and providing access to a wider range of CIOs; and
· In the longer term, we see the Trisus platform evolving into the ubiquitous
4(th) pillar of software within a hospital, consisting of an ecosystem of
solutions powered by Trisus data, providing healthcare providers with the
insight required to maintain outstanding financial and operational
performance.
Ongoing platform and product enhancements support expansion opportunity
The continual improvement of our existing offerings is an ongoing process.
Combinations of new technology and their novel applications give speed,
productivity and efficiency gains that benefit the ease of use of our
offerings by our customers.
We were pleased to once again rank number one in the highly renowned "Best in
KLAS" awards in February for our flagship Trisus Chargemaster solution,
demonstrating our continued leadership within revenue cycle management.
As part of our Data Foundations programme of work, we are utilising the
advances in AI and ML data processing to increase the interoperability and
connectivity of our applications, while making the platform's back-end
processes more efficient and effective. This work has now enabled the full
integration of our Revenue Integrity and 340B related software technology
stacks, via the Oracle Database@Azure, which centralises data in Trisus whilst
leveraging the processing power of Oracle, reducing latency and improving data
integration across products and services, thereby making our offerings even
more attractive to customers as the speed and depth of insights available is
increased.
The depth of our product offering continues to expand through mining of the
proprietary and regulatory data that we collect, identifying new ways that
data can illuminate and support decision making within the hospital provider
environment. We now have data sets covering more than 200 million patient
encounters, providing incredibly valuable insights for our customers.
Microsoft Alliance provides product innovation opportunities and expanded
market reach
We are seeing increased engagement from other industry participants, such as
Microsoft and Oracle, as part of their strategic focus on the healthcare
market. The first half of the year has seen exciting innovation in conjunction
with both parties across our Trisus platform and its applications, and we look
forward to benefitting from these collaborations in future periods in the form
of increased marketing activities, accelerated product development and
streamlined new customer acquisitions.
As part of the alliance with Microsoft announced in July 2024, the first three
Trisus solutions are now live on the Microsoft Azure Marketplace. We were
delighted to execute the first major customer contract via the Marketplace in
H1, with additional opportunities in progress and the first joint go-to-market
initiatives now commencing.
Launch of Trisus(®) Assist
The Alliance will also see the delivery of differentiated offerings and
increased value to customers through the application of industry leading data
analytics, AI, and modern platform technology within Trisus to provide
improved predictive analysis and the ability to uncover greater actionable
insights for our customers. We attended the leading industry event, HIMSS,
earlier this month, in conjunction with Microsoft, where we had the
opportunity to jointly showcase the innovation taking place across our
offerings, including the launch of Trisus(®) Assist, a groundbreaking
AI-powered personal assistant, initially available within Trisus(®)
Chargemaster - designed to revolutionise how healthcare finance,
administration and operational teams research and navigate complex healthcare
operational issues and generate greater efficiencies.
Our AI-driven solution eliminates inefficiency by:
· Providing persona-based workflow help and compliance prompt engineering
· Combining the latest large language model generative AI technology with the
Group's extensive and unique 200 million patient journeys, creating
proprietary customised GPTs
· Instantly analysing thousands of pages of Centers for Medicare & Medicaid
Services (CMS) guidance, which explains how federal laws are implemented for
healthcare programs, including regulations, rulings, and other policy
statements, to provide accurate, succinct responses in fractions of a second
· Delivering authoritative answers with source citations, ensuring confidence in
compliance decisions
· Reducing research time from hours to seconds, freeing up teams to focus on
strategic priorities
Platform continues to deliver
Our growing Partner and Platform programme further enables us to leverage the
strength of our data and platform to generate additional, highly scalable,
revenue streams, aiming to bring additional benefits to our customers. These
programmes will include our ability to leverage third parties, including
through hosting third party applications on the Trisus platform.
Initially, we consider these to be non-recurring revenue, but over time we
expect much of this revenue to become recurring. In the period, we have been
able to transition the early adopters into a recurring revenue model, adding
to our ARR, and there is a building pipeline of additional programme
opportunities, which are being rigorously assessed prior to launch.
M&A provides potential for strategy acceleration
While organic growth across our portfolio remains the priority, we continue to
evaluate the market for suitable M&A opportunities and strategically
aligned companies that will accelerate our growth strategy. We maintain the
same four key acquisition criteria of which target companies must fit into at
least one, being: the addition of relevant data sets; the extension of the
customer base; the expansion of expertise; and the addition of applications
suitable for the US hospital market. We view our platform partnering programme
as a potential source of future M&A activity, provided this would deliver
mutual benefits to all parties.
Strengthening of the Board of Directors
We were pleased to appoint Tamra Minnier in November 2024 and Susan Nelson in
January 2025 as Non-Executive Directors. Both bring a wealth of experience in
the US healthcare market, holding leadership roles within major US integrated
healthcare systems, and will provide invaluable guidance, alongside existing
Board Directors, on the continued evolution of our product offerings.
Financial Review
In our January trading statement, we confirmed the Group's return to double
digit growth for the six months ended 31 December 2024, for both revenue and
EBITDA. This pleasing result coincided with a milestone for the Group,
reporting $100m of Revenue in an individual six-month period for the first
time. With revenue growing to $100.0m (H1 FY24: $91.2m) and a corresponding
10% increase in Adjusted EBITDA to $30.3m (H1 FY24: $27.5m), the Group is now
focused on sustaining these growth rates for the full year and using them as a
"springboard" to further success. These results are a combination of the
Group's strategic investments in the Trisus platform, and the considerable
efforts of our employees, combined with the improving US Healthcare market
landscape, as US hospitals plan for their future and look for the right
strategic partners to help them achieve their aims.
We have explained in our prior year's report that a big focus of our capital
allocation decisions would be de-leveraging the balance sheet because of the
macro interest rate environment and the impact this was having on our results,
primarily to Adjusted EPS. Whilst retaining access to the overall Revolving
Credit Facility (RCF) of up to $100m, we have actively reduced our RCF draw to
$20m. This, combined with ongoing payments of $2m per quarter against our term
loan, has resulted in a reduction in overall bank debt to $31.6m (H1 FY24:
$59.2m). Equally significantly, the reduced net interest charge has
contributed to an Adjusted EPS increase of 18%, over the corresponding period
in the prior year, to 50.6 cents per share (H1 FY24: 42.8 cents per share),
and an increase on an unadjusted basis of 78% from 11.6 cents per share to
20.7 cents per share.
Whilst it is clear that macroeconomic challenges remain, it is pleasing to
report that the strength of the Group's balance sheet, levels of cash
conversion combined with our end market continuing to improve, means we are
well positioned and financially able to navigate these.
Investment in R&D
We continue to believe the digitalisation of healthcare and the improvement of
processes using data insights will provide the foundation for value-based care
and enable the transformation of the business of healthcare. Our enlarged
portfolio of products means we can do even more to support our customers in
their strategic needs. This, combined with our independent position in the
market, means we are uniquely placed to support all US healthcare providers.
The real financial returns our solutions deliver and the certainty for our
customers that the Group acts solely for their benefit allow us to be a true
strategic partner to US Hospitals. It is therefore essential we continue to
build on this position and make the right investments in our future as we
develop further ways of supporting our customers.
We have continued to invest in R&D, increasing spend in the period by 5%
to $26.3m (H1 FY24: $25.0m). The amount of this investment capitalised in the
period, being $7.1m (H1 FY24: $7.9m), has reduced in percentage terms to
approximately 27% of the total investment, this is reflective of the strong
controls over the amounts we invest and capitalise in relation R&D spend.
The mix of "stages" of R&D projects has seen a number of prior year
projects being completed with a corresponding end of capitalisation for their
costs. This, combined with new Proof of Concepts (including those with
Microsoft under our strategic alliance) being at a "pre-capitalisation" stage,
has lowered the levels of capitalised R&D expenditure in the period. The
balance of the R&D spend of $19.2m (H1 FY24: $17.1m) has been expensed as
incurred. We continue to ensure that any costs that have been capitalised will
bring future economic benefit to the Group, by monitoring the value of
contracts sold for these new products once launched, comparing these against
the costs that have been invested.
Cash Reserves
As a group, we continue to deliver excellent operating cash conversion. This
increased our cash reserves, which at the period end were $72.2m (H1 FY24:
$63.9m) and reduced our bank debt to $31.6m (H1 FY24: $59.2m). We maintain an
undrawn RCF of $80m.
From these cash reserves, we have returned $7.1m to our shareholders through
dividends as well as the $26.3m investment we have made in R&D in the
period. Our business model is highly cash generative, and we continue to
deliver significant levels of operating cash conversion, in the last 12 months
we achieved over 100% cash conversion.
Underlying Business Model and Professional Services
The software contracts we sign with our hospital customers provide a licence
for the customer to access specified products throughout their licence period.
At the end of an existing licence period, or at a mutually agreed earlier
date, we look to renew these contracts with our customers.
In addition to the core licences, our 340B hospital customers can add further
licences to provide 340B coverage to eligible patients who, rather than return
to the hospital for their prescriptions, have these filled at local contract
pharmacies or mail order specialised pharmacies. These further licences often
include transactional based licence fees and other services. These
transactional services, whilst highly dependable, will see some variation
month to month dependent on volume of transactions.
Under the Group's business model, we recognise software licence revenue and
any minimum payments due from our 'other long term' contracts evenly over the
life of the underlying contract term. Transactional services are recognised as
we provide the service, and we are contractually able to invoice the customer.
In addition to the licence revenues recognised in any year, we derive revenue
from providing services to our customers. Where these services are provided
over an extended contract period, usually alongside the multi-year software
licence as part of one our Trisus Optimization Suites, or where they relate to
a complex implementation integral to the use of the software, the revenue is
recognised evenly over the life of the underlying contract or project term.
The combination of these two software revenue models plus our recurring
professional services represent the recurring platform revenues of the
business, which for the current period have increased to $87.9m (H1 FY24:
$81.5m).
Shorter professional or consulting services engagements are also provided,
usually taking less than one year to complete. These revenues are usually
recognised as we deliver the service to the customer, on a percentage of
completion basis.
We continue to look for new and innovative ways to leverage the Trisus
platform and the significant data assets within it. Our Platform partnership
programme aims to deliver meaningful benefit to our customers and derive new
revenue opportunities and additional business models for the Group. These
revenues are recognised at the point we are able to invoice our customers. As
initially, it is often too early to establish a pattern of what would become
recurring, they are shown separately as "Platform Revenues - non-recurring".
Over time we expect much of this revenue to become recurring and as such will
be reported within Software licence or Transactional revenue, as appropriate.
Annual Recurring Revenue
By renewing our underlying contracts, and ensuring we continue to deliver the
transactional services to our customers we sustain a highly visible recurring
revenue base, which means sales bookings of new products to existing customers
or sales bookings to new hospital customers add to this recurring revenue.
Our ARR metric identifies and demonstrates the Group's continued high levels
of contracted revenue visibility. It is defined as the annual value of licence
and recurring revenues including transaction revenues as at 31 December 2024
that are subject to underlying contracts and where revenue is being recognised
at the reporting date. We also report our Net Recurring Revenue metric which
identifies the contribution from our existing customer base, and in the period
was over 100%. The Group's ARR at 31 December 2024 was $177.3m (H1 FY24:
$171.4m). We expect further growth in this metric, including as additional
revenues generated from our partnership contracts are identified as recurring.
Functional Currency
We continue to report the results (and hold the cash reserves) of the Group in
US Dollars, whilst having approximately 20% percent of our costs, mainly in
respect of our UK employees and UK purchases, denominated in Sterling. The
average exchange rate for the Company during the reporting period was
$1.29/£1 which compares to $1.25/£1 in the corresponding period last year.
The exchange rate at the Balance Sheet date was $1.25/£1 (H1 FY24:
$1.27/£1).
Dividend
The Board has declared an interim dividend of 13.5p (16.87 cents) per ordinary
share, payable on 17 April 2025 to those shareholders on the register as at 21
March 2025 (FY24 Interim dividend 13.0p). The ex-dividend date is 20 March
2025.
The interim dividend of 13.5p per share is capable of being paid in US dollars
subject to a shareholder having registered to receive their dividend in US
dollars under the Company's Dividend Currency Election, or who has
registered to do so by the close of business on 21 March 2025. The exact
amount to be paid will be calculated by reference to the exchange rate to be
announced on 21 March 2025. The interim dividend referred to above in US
dollars of 16.87 cents is given as an example only using the Balance Sheet
date exchange rate of $1.25/£1 and may differ from that finally announced.
Continued positive trading and outlook
Positive trading has continued into the second half of the year and the Board
remains confident in achieving results for the year to 30 June 2025 in line
with current market expectations.
Longer-term, the Board continues to see considerable opportunity, reflecting
Craneware's strong market positioning, expanding Trisus platform, and the
significant size of the overall market, providing the potential for further
growth acceleration, in line with the Group's ambitions.
The strength of the Group's balance sheet, high levels of recurring revenue
and strong cash generation provide Craneware with the solid financial
foundations required to execute on this opportunity, as we support our
customers in transforming the business of healthcare.
Keith Neilson Craig Preston
CEO Craneware plc CFO Craneware plc
10 March 2025 10 March 2025
Consolidated Statement of Comprehensive Income
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
Notes $'000 $'000 $'000
Revenue from contracts with customers 1 100,045 91,214 189,268
Cost of sales (13,159) (13,155) (27,072)
Gross profit 86,886 78,059 162,196
Other income - 1 (398)
Operating expenses (74,871) (69,066) (140,953)
Net impairment charge on financial and contract assets (1,091) (648) (1,111)
Operating profit 10,924 8,346 19,734
Analysed as:
Adjusted EBITDA(1) 30,266 27,517 58,279
Share-based payments (2,601) (2,211) (4,487)
Depreciation of property, plant and equipment (1,420) (1,672) (3,293)
Amortisation of intangible assets - other (4,861) (4,230) (9,169)
Amortisation of intangible assets - acquired intangibles (10,460) (10,460) (20,921)
Exceptional costs(2) - (598) (675)
Finance income 696 362 1,143
Finance expense (1,515) (2,785) (5,130)
Profit before taxation 10,105 5,923 15,747
Tax on profit on ordinary activities (2,869) (1,859) (4,044)
Profit for the period attributable to owners of the parent 7,236 4,064 11,703
Total comprehensive income attributable to owners of the parent 7,236 4,064 11,703
(1)See note 15 for explanation of Alternative Performance Measures.
(2) Exceptional items relate to integration costs associated with the purchase
of Sentry Data Systems, Inc
Earnings per share for the period attributable to equity holders
- Basic ($ per share) 2 0.207 0.116 0.335
- Adjusted Basic ($ per share)(1) 2 0.506 0.428 0.948
- Diluted ($ per share) 2 0.205 0.115 0.332
- Adjusted Diluted ($ per share)(1) 2 0.502 0.425 0.939
Consolidated Statement of Changes in Equity
Share Capital Share Premium Capital Redemption Reserve Merger Reserve Other Reserves Retained Earnings Total
Treasury Shares
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
At 1 July 2023 659 97,204 (3,737) 9 186,981 6,840 39,885 327,841
Total comprehensive income - profit for the period - - - - - - 4,064 4,064
Transactions with owners:
Share-based payments - - - - - 2,062 - 2,062
Purchase of own shares through EBT - - - - - - (534) (534)
Purchase of own shares through share buyback - - (1,191) - - - - (1,191)
Impact of share options and awards exercised/lapsed - - 1,279 - - - (2,174) (895)
Dividends - - - - - - (7,046) (7,046)
At 31 December 2023 659 97,204 (3,649) 9 186,981 8,902 34,195 324,301
Total comprehensive income - profit for the period - - - - - - 7,639 7,639
Transactions with owners:
Share-based payments - - - - - 2,065 - 2,065
Purchase of own shares through EBT - - - - - - (329) (329)
Purchase of own shares through share buyback - - (1,244) - - - - (1,244)
Deferred tax taken directly to equity - - - - - - 1,893 1,893
Impact of share options and awards exercised/lapsed - - 401 - - (2,077) 1,695 19
Dividends - - - - - - (5,752) (5,752)
At 30 June 2024 659 97,204 (4,492) 9 186,981 8,890 39,341 328,592
Total comprehensive income - profit for the period - - - - - - 7,236 7,236
Transactions with owners
Share-based payments - - - - - 2,636 - 2,636
Purchase of own shares through EBT - - - - - - (76) (76)
Impact of share options and awards exercised/lapsed - - 1,666 - - (2,903) (932) (2,169)
Dividends - - - - - - (7,100) (7,100)
At 31 December 2024 659 97,204 (2,826) 9 186,981 8,623 38,469 329,119
Consolidated Balance Sheet as at 31 December 2024
unaudited unaudited audited
H1 2025 H1 2024 FY2024
Notes $'000 $'000 $'000
ASSETS
Non-Current Assets
Property, plant and equipment 7,514 7,421 8,592
Intangible assets - goodwill 3 235,236 235,236 235,236
Intangible assets - acquired intangibles 3 134,946 155,867 145,406
Intangible assets - other 3 59,076 53,932 56,827
Trade and other receivables 4 3,147 2,530 3,634
Deferred Tax - - 733
439,919 454,986 450,428
Current Assets
Trade and other receivables 4 53,879 55,456 58,638
Cash and cash equivalents 72,160 63,895 34,589
126,039 119,351 93,227
Total Assets 565,958 574,337 543,655
EQUITY AND LIABILITIES
Non-Current Liabilities
Borrowings 6 23,568 51,210 27,372
Deferred income - 1,917 958
Leased property 3,421 1,874 3,823
Deferred tax 32,708 41,337 33,441
Other provisions 482 187 708
60,179 96,525 66,302
Current Liabilities
Borrowings 6 8,000 8,000 8,000
Deferred income 60,426 61,404 65,859
Amounts held on behalf of customers 88,069 68,502 53,390
Tax payable - 601 4,278
Trade and other payables 5 20,165 15,004 17,234
176,660 153,511 148,761
Total Liabilities 236,839 250,036 215,063
Equity
Share capital 7 659 659 659
Share premium account 97,204 97,204 97,204
Treasury shares (2,826) (3,649) (4,492)
Capital redemption reserve 9 9 9
Merger reserve 186,981 186,981 186,981
Other reserves 8,623 8,902 8,890
Retained earnings 38,469 34,195 39,341
Total Equity 329,119 324,301 328,592
Total Equity and Liabilities 565,958 574,337 543,655
Consolidated Statement of Cash Flows
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
Notes $'000 $'000 $'000
Cash flows from operating activities
Cash generated from 8 65,776 33,395 53,703
operations
Tax paid (8,538) (3,822) (11,841)
Net cash generated from operating activities 57,238 29,573 41,862
Cash flows from investing activities
Purchase of property, plant and equipment (347) (625) (1,191)
Capitalised intangible assets (7,111) (7,931) (15,766)
Interest received 696 252 1,143
Net cash used in investing activities (6,762) (8,304) (15,814)
Cash flows from financing activities
Dividends paid to company shareholders (7,100) (7,046) (12,798)
Proceeds from issuance of treasury shares 5 240 276
Repayment of borrowings (4,000) (24,000) (48,000)
Interest on borrowings (1,228) (2,525) (4,624)
Purchase of own shares by EBT (76) (534) (863)
Share buyback programme - (1,292) (2,485)
Payment of lease liabilities (506) (754) (1,502)
Net cash used in financing activities (12,905) (35,911) (69,996)
Net increase/ (decrease) in cash and cash equivalents 37,571 (14,642) (43,948)
Cash and cash equivalents at the start of the period 34,589 78,537 78,537
Cash and cash equivalents at the end of the period 9 72,160 63,895 34,589
Notes to the Financial Statements
1. Revenue from contracts with customers
The chief operating decision maker has been identified as the Board of
Directors. The Group revenue is derived almost entirely from the sale of
software licences, professional services (including installation) and
transactional fees to hospitals and affiliated pharmacies within the United
States of America. Consequently, the Board has determined that the Group
supplies only one geographical market place and as such revenue is presented
in line with management information without the need for additional segmental
analysis. All of the Group's assets are located in the United States of
America with the exception of the Parent Company's, the net assets of which
are located in the United Kingdom.
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Software licencing 67,763 69,991 138,687
Professional services - recurring 2,865 1,221 4,907
Transactional revenue 17,314 10,283 24,708
Contracted recurring revenue 87,942 81,495 168,302
Professional services - non-recurring 4,973 4,121 7,174
Platform revenues - non-recurring 7,130 5,598 13,792
Total revenue 100,045 91,214 189,268
Software licensing and professional services are recognised over time.
Transactional fees and other revenue are recognised at a point in time.
2. Earnings per Share
The calculation of basic and diluted earnings per share is based on the
following data:
Weighted average number of shares
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
No. of Shares No. of Shares No. of Shares
000s 000s 000s
Weighted average number of Ordinary Shares for the purpose of basic earnings 34,981 34,962 34,957
per share (excluding own shares held)
Effect of dilutive potential Ordinary Shares: share options and LTIPs 304 252 335
Weighted average number of Ordinary Shares for the purpose of diluted earnings 35,285 35,214 35,292
per share
The Group has one category of dilutive potential Ordinary shares, being those
granted to Directors and employees under the share schemes.
Shares held by the Employee Benefit Trust and Treasury Shares held directly by
the Company are excluded from the weighted average number of Ordinary shares
for the purposes of basic earnings per share.
Profit for period
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$000's $'000s $000's
Profit for the period attributable to equity holders of the parent 7,236 4,064 11,703
Acquisition integration costs (tax adjusted) - 449 507
Amortisation of acquired intangibles (tax adjusted) 10,460 10,460 20,921
Adjusted profit for the period attributable to equity holders of the parent 17,696 14,973 33,131
Basic earnings per share are calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of shares in
issue during the period.
For diluted earnings per share, the weighted average number of Ordinary shares
calculated above is adjusted to assume conversion of all dilutive potential
Ordinary shares.
Earnings per share
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
cents cents cents
Basic EPS 20.7 11.6 33.5
Diluted EPS 20.5 11.5 33.2
Adjusted basic EPS 50.6 42.8 94.8
Adjusted diluted EPS 50.2 42.5 93.9
3. Intangible assets
Goodwill Customer Relationships Proprietary Software Development Costs Computer Software Total
Trademarks
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Cost
At 1 July 2024 235,486 153,964 52,724 5,000 86,817 4,246 538,237
Additions - - - - 7,152 - 7,152
Disposals - (2,964) (1,221) - (2,294) - (6,479)
At 31 December 2024 235,486 151,000 51,503 5,000 91,675 4,246 538,910
Accumulated amortisation and impairment
At 1 July 2024 250 32,839 31,794 1,649 30,145 4,091 100,768
Charge for the period - 5,032 5,150 278 4,824 37 15,321
Disposals - (2,964) (1,221) - (2,252) - (6,437)
At 31 December 2024 250 34,907 35,723 1,927 32,717 4,128 109,652
Net book value at 31 December 2024 235,236 116,093 15,780 3,073 58,958 118 429,258
Net book value at 30 June 2024 235,236 121,125 20,930 3,351 56,672 155 437,469
4. Trade and other receivables
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Trade receivables 38,560 44,130 48,007
Less: provision for impairment of trade receivables (3,700) (2,773) (2,763)
Net trade receivables 34,860 41,357 45,244
Other receivables 1,214 1,548 1,862
Current tax receivable 4,255 - 1,921
Prepayments and accrued income 11,785 10,596 7,787
Deferred contract costs 4,912 4,485 5,458
57,026 57,986 62,272
Less non-current other debtors (282) - (399)
Less non-current deferred contract costs (2,865) (2,530) (3,235)
Current trade and other receivables 53,879 55,456 58,638
-----There is no material difference between the fair value of trade and other
receivables and the book value stated above. All amounts included within trade
and receivables are classified as financial assets at amortised cost.
5. Trade and other payables
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Trade payables 3,215 5,044 3,725
Lease creditor due < 1 year 900 1,032 952
Other provisions < 1 year 229 204 512
Social security and PAYE 2,792 1,610 2,268
Other creditors 1,044 218 156
Accruals 11,500 6,423 9,367
Advanced payments 485 473 254
Trade and other payables 20,165 15,004 17,234
------No derivatives have been entered into in the current reporting period.
No other assets or liabilities have been measured at fair value. Trade and
other payables are classified as financial liabilities at amortised cost.
6. Borrowings
The debt facility comprises a term loan of $12m (H1 2024: $20m) which is
repayable in quarterly instalments over 5 years up to 30 June 2026, and a
revolving loan facility of $100m of which $20m (H1 2024: $40m) is drawn down
and which expires on 7 June 2026. During the 6 month period, $4m was repaid on
the term loan.
Interest is charged on the facility on a daily basis at margin and compounded
reference rate. The margin is related to the leverage of the Group as defined
in the loan agreement. As the leverage of the Group strengthens, the
applicable margin reduces.
The facility is secured by a Scots law floating charge granted by the Company,
an English law debenture granted by the Company and a New York law security
agreement to which the Company and certain of its subsidiaries are parties.
The securities granted by the Company and the relevant subsidiaries provide
security over all assets of the Company and specified assets of the Group.
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Current interest bearing borrowings 8,000 8,000 8,000
Non-current interest bearing borrowings 23,568 51,210 27,372
Total 31,568 59,210 35,372
Arrangement fees paid in advance of the setting up of the facility are being
recognised over the life of the facility in operating costs. The remaining
balance of unamortised fees and interest at 31 December 2024 is $0.4m (31
December 2023: $0.8m).
Loan covenants
Under the facilities the Group is required to meet quarterly covenants tests
in respect of:
a) Adjusted leverage which is the ratio of total net debt on the last day of
the relevant period to adjusted EBITDA;
b) Cash flow cover which is the ratio of cashflow to net finance charges in
respect of the relevant period.
The Group complied with these ratios throughout the reporting period.
Financing arrangements
The Group's undrawn borrowing facilities were as follows:
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Revolving facility 80,000 60,000 80,000
Undrawn borrowing facilities 80,000 60,000 80,000
7. Called up share capital
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
Number $'000 Number $'000 Number $'000
Authorised
Equity share capital
Ordinary shares of 1p each 50,000,000 1,014 50,000,000 1,014 50,000,000 1,014
Allotted called-up and fully paid
Equity share capital
Ordinary shares of 1p each 35,542,169 659 35,542,169 659 35,542,169 659
8. Cash generated from operations
Reconciliation of profit before taxation to net cash generated from
operations:
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Profit before tax 10,105 5,923 15,747
Finance income (696) (362) (1,143)
Finance expense 1,515 2,785 5,130
Depreciation of property, plant and equipment 1,420 1,672 3,293
Amortisation of intangible assets - other 4,861 4,230 9,169
Amortisation of intangible assets - acquired intangibles 10,460 10,460 20,921
Loss on disposals 2 21 113
Share-based payments 2,601 2,211 4,487
Movements in working capital:
Decrease/ (increase) in trade and other receivables 7,558 (20,681) (21,183)
(Decrease)/ increase in trade and other payables (6,855) 9,854 14,999
Increase in amounts held on behalf of customers 34,805 17,282 2,170
Cash generated from operations 65,776 33,395 53,703
9. Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents
comprise cash held by the Group and short-term bank deposits.
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Cash and cash equivalents 72,160 63,895 34,589
10. Basis of Preparation
The interim financial statements are unaudited and do not constitute statutory
accounts as defined in S435 of the Companies Act 2006. These statements have
been prepared applying accounting policies that were applied in the
preparation of the Group's consolidated accounts for the year ended 30 June
2024 and the changes outlined below in Note 13. Those accounts, with an
unqualified audit report, have been delivered to the Registrar of Companies.
The interim financial statements have been prepared on a going concern basis.
The Group's activities and an overview of the development of its products,
services and the environment in which it operates together with an update on
the Group's financial performance and position are set out in the Financial
Review. The Group is profitable and there is a reasonable expectation that
this will continue to be the case. Our business model is delivering high
levels of recurring revenue, supported by long term underlying contracts. In
addition, the Group has cash and cash equivalents of $72.2m as well as a
committed but undrawn facility of $80m available.
The Viability Statement and the Board's Going Concern assessment contained the
Annual Report for the year ended 30 June 2024 are still considered to be
appropriate by the Board. The SaaS business model with its underlying
long-term contracts, as described earlier in the Financial Review, high levels
of cash generation and long-term focus on customer success provides a
foundation of revenue for future periods. This foundation of contracted
revenue forms the basis of the scenarios considered by the Directors in making
this assessment.
The Directors, having made suitable enquiries and analysis of the interim
financial statements, including the consideration of: net cash; continued cash
generation; compliance with loan facility covenants; and SaaS business model;
have determined that the Group has adequate resources to continue in business
for the foreseeable future and that it is therefore appropriate to adopt the
going concern basis in preparing the interim financial statements.
11. Segmental Information
The Directors consider that the Group operates in predominantly one business
segment, being the creation of software sold entirely to the US Healthcare
Industry, and that there are therefore no additional segmental disclosures to
be made in these financial statements.
12. Risks and uncertainties
The principal risks and uncertainties, as set out on pages 21 to 28 of the
Annual Report for the year ended 30 June 2024, remain unchanged. The unchanged
risks are:
· Data & Cyber Security
· Protection of Data
· Intellectual Property Risk
· Regulatory Environment
· US Healthcare: Complexity, Evolution and Reform
· Complex Market Dynamics
· Technology Risks
· Macro-economic Environment
· Treasury Risks
The Directors regularly review these risks and uncertainties and appropriate
actions are taken to manage them. Included within the Strategic Report section
is more detail on the outlook for the Group for the remaining six months of
the year.
13. Changes to Significant Accounting Policies, Judgements and Estimates
The accounting policies, significant judgements and key sources of estimation
applied in these interim financial statements are the same as those applied in
the Group's consolidated financial statements as at and for the year ended 30
June 2024.
14. Availability of Half Yearly Financial Report
Copies of this Half Yearly Financial Report are available for download from
the Company's website, www.thecranewaregroup.com
(http://www.thecranewaregroup.com) . A printed copy can be obtained on request
from the registered office of the Company.
15. Alternative performance measures
The Group's performance is assessed using a number of financial measures which
are not defined under IFRS and are therefore non-GAAP (alternative)
performance measures.
The Directors believe these measures enable the reader to focus on what the
Group regard as a more reliable indicator of the underlying performance of the
Group since they exclude items which are not reflective of the normal course
of business, accounting estimates and non-cash items. The adjustments made are
consistent and comparable with other similar companies.
Adjusted EBITDA
Adjusted EBITDA refers to earnings before interest, tax, depreciation,
amortisation, exceptional items and share based payments.
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Operating profit 10,924 8,346 19,734
Depreciation of property, plant and equipment 1,420 1,672 3,293
Amortisation of intangible assets - other 4,861 4,230 9,169
Amortisation of intangible assets - acquired intangibles 10,460 10,460 20,921
Share based payments 2,601 2,211 4,487
Exceptional items - integration costs - 598 675
Adjusted EBITDA 30,266 27,517 58,279
Adjusted earnings per share (EPS)
Adjusted earnings per share (EPS) calculations allow for the tax adjusted
acquisition costs and share related transactions together with amortisation on
acquired intangibles via business combinations. See Note 2 for the
calculation.
Adjusted PBT
Adjusted PBT refers to profit before tax adjusted for exceptional items and
amortisation of acquired intangibles.
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Profit before taxation 10,105 5,923 15,747
Amortisation of intangible assets - acquired intangibles 10,460 10,460 20,921
Exceptional items - integration costs - 598 675
Adjusted PBT 20,565 16,981 37,343
Net cash / (borrowings)
Net borrowings refers to net balance of short term borrowings, long term
borrowings and cash and cash equivalents.
unaudited unaudited audited
H1 2025 H1 2024 FY 2024
$'000 $'000 $'000
Cash and cash equivalents (Note 9) 72,160 63,895 34,589
Borrowings (Note 6) (31,568) (59,210) (35,372)
Net cash/ (borrowings) 40,592 4,685 (783)
Lease liabilities are excluded from borrowings for the purpose of net
borrowings.
Total Sales
Total Sales refer to the total value of contracts signed in the year,
consisting of New Sales and Renewals.
New Sales
New Sales refers to the total value of contracts with new customers or new
products to existing customers at some time in their underlying contract.
Annual Recurring Revenue
Annual Recurring Revenue includes the annual value of licence and transaction
revenues as at 31 December 2024 that are subject to underlying contracts and
where revenue is being recognised at the reporting date.
Net Revenue Retention
Net Revenue Retention is the percentage of revenue retained from existing
customers over the measurement period, taking into account both churn and
expansion sales.
Revenue Growth
Revenue Growth is the increase in Revenue in the current period compared to
the previous period expressed as a percentage of the previous period Revenue.
Cautionary statement
Certain statements in this report are forward-looking statements. These
forward-looking statements are made by the Directors in good faith based on
the information available to them up to the time of their approval of this
report. However, such statements should be treated with caution due to the
inherent uncertainties, including both economic and business risk factors,
underlying any such forward-looking information that could cause actual events
or results to differ materially from any expected future events or results
expressed or implied in these forward-looking statements. Unless otherwise
required by applicable law or regulation, Craneware plc does not undertake any
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future developments or otherwise.
Directors, Secretary, Advisors and Subsidiaries
Directors Company Secretary and Registered Office
W Whitehorn (non-executive, Chair) C T Preston
K Neilson 1 Tanfield
C T Preston Edinburgh
I Urquhart EH3 5DA
D Kemp (senior independent director)
A Erskine (non-executive)
A McCune (non-executive)
T Minnier (non-executive) (appointed 13 November 2024)
S Nelson (non-executive) (appointed 16 January 2025)
Nominated Advisors and Joint Stockbroker Registrars Independent Auditors Financial PR
Peel Hunt LLP
100 Liverpool Street MUFG Corporate Markets PricewaterhouseCoopers LLP Alma Strategic Communications
London Central Square Atria One 71-73 Carter Lane
EC2M 2AT 29 Wellington Street 144 Morrison Street London
Leeds Edinburgh EC4V 5EQ
LS1 4DL EH3 8EX
Joint Stockbrokers Solicitors
Berenberg, Gossler & Co Investec Bank plc Bryan Cave Leighton Paisner LLP Pinsent Masons LLP
60 Threadneedle Street 30 Gresham Street One Atlantic Center, 58 Morrison Street
London London 14(th) Floor Edinburgh
EC2R 8HP EC2V 7QP 1201 W. Peachtree St. NW. EH3 8BP
Atlanta
GA, 30309-3471
Bankers
The Royal Bank of Scotland plc Silicon Valley Bank HSBC Bank plc Bank of Scotland
36 St Andrew Square (a division of First Citizens Bank) 7 West Nile Street The Mound
Edinburgh 3003 Tasman Drive Glasgow Edinburgh
EH1 1YZ
EH2 2YB Santa Clara, CA 95054 G1 2RG
Wells Fargo Bank of America Barclays Commercial Bank
500 N. Magnolia Avenue 101 E. Kennedy Blvd Aurora House
8(th) Floor Tampa, FL 33602 120 Bothwell Street
Orlando, FL 32803 Glasgow
G2 7JT
Subsidiaries and Registered offices
Craneware US Holdings, Inc. Craneware, Inc. Sentry Data Systems, Inc. Craneware Healthcare Intelligence, LLC
Corporation Trust Center 600 West Hillsboro Boulevard 600 West Hillsboro Boulevard 200 Pinewood Lane
1209 Orange St Suite 500 Suite 500 Suite 304
Wilmington, DE 19801 Deerfield Beach, FL 33441 Deerfield Beach, FL 33441 Warrendale, PA 15086
Agilum Healthcare Intelligence, Inc.
600 West Hillsboro Boulevard
Suite 500,
Deerfield Beach, FL 33441
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