REG - Craneware plc - H1 FY25 Trading Update

CranewareAnnouncement

13/01/2025 07:00

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RNS Number : 0502T  Craneware plc  13 January 2025

Craneware plc

("Craneware" or the "Company")

 

H1 FY25 Trading Update, Director Appointment and Notice of Results

 

13 January 2025 - Craneware (AIM: CRW.L), the market leader in Value Cycle
software solutions for the US healthcare market, is pleased to provide an
update on trading for the six months ended 31 December 2024 ("H1 FY25").

 

Trading Update

 

The Group has enjoyed another period of positive trading, meeting management's
expectations of double-digit growth of c.10% to exceed $100.0m of revenue (H1
FY24: $91.2m), and adjusted EBITDA(1) of c.$30.3m (H1 FY24: $27.5m). Annual
Recurring Revenue ("ARR(2")) has, so far, grown by approximately 3% to c.$177m
(H1 FY24: $171.4m), with continued sales momentum and Net Revenue Retention
above 100%. These sales have included continuing success of the Trisus
Platform Partner offerings, and the first major customer contract secured via
the Microsoft Azure Marketplace.

 

The Group continues to deliver high levels of operating cash conversion, which
has been used to invest in our product portfolio, reduce debt and interest
costs, with total bank debt reduced to $31.6m (H1 FY24: $59.2m), whilst
retaining healthy total cash reserves of $72.2m (H1 FY24: $63.9m).

 

NED Appointment

 

The Company is pleased to announce the appointment of Susan Nelson as
Non-Executive Director, with effect from 16 January 2025. Susan is an
experienced senior US healthcare executive currently holding the role of
Executive Vice President and Chief Financial Officer at MedStar Health, an
$8.3 billion integrated healthcare system in the Maryland and Washington, D.C.
region. MedStar Health is the medical education and clinical partner with
Georgetown University. Susan's role includes responsibility for the health
care system's finances, including reporting, planning, revenue cycle, capital
management and investment activities, managed care contracting, business
transformation, business development, enterprise analytics and performance
improvement.

 

Outlook

 

Following the election, US hospitals are now expecting a period of stability
and investment in strategic growth, which the Board anticipates will provide a
sustained demand environment for Craneware's offerings.

 

The strength of the Company's balance sheet, high levels of recurring revenue
and strong cash generation provide Craneware with solid foundations, and the
ability to fully absorb the impact of National insurance increases in the
United Kingdom, as it executes on its growth strategy, capitalising on its
strategic position at the heart of the US healthcare market. As a result, the
Group continues to trade in line with current market expectations for the year
ending 30 June 2025 and is pleased with the accelerated growth delivered in
the period.

 

Notice of Results

 

Craneware will announce results for the six months ended 31 December 2024 on
11 March 2025.

 

Keith Neilson, CEO of Craneware plc, commented,

 

"We are pleased to have delivered another healthy first half performance,
demonstrating our continued progression to sustainable double-digit growth, as
customers increase their use of our Trisus platform and platform partner
offerings. The pace of innovation taking place across our organisation in
collaboration with Microsoft and Oracle is considerable, and we look forward
to stepped increases in our joint marketing initiatives in the coming months.

 

"With our prior sales successes now converting into ARR growth, continued
strong cash generation and an increasingly strategic position as powerful
source of independent data and insights at the heart of the US healthcare
market, we look to the future with confidence."

 

(1) Adjusted EBITDA refers to earnings before interest, tax, depreciation,
amortisation, share based payments and acquisition and integration related
costs.

(2) Annual Recurring Revenue ("ARR") includes the annual value of licence and
transaction revenues as at 31 December 2024 that are subject to underlying
contracts and revenue is being recognised.

 

Additional information

 

The following information is being disclosed pursuant to Rule 17 and paragraph
(g) of Schedule 2 of the AIM Rules for Companies in relation to the
appointment of Susan Nelson to the Board.

 

Susan Kay Nelson (previously Susan Kay Longshore), aged 58, has been a
director or partner of the following companies or partnerships during the five
years preceding the date of this announcement:

 

 Current:                                                                         Historic:

 ·      Church Home and Hospital of The City of Baltimore (formerly known         ·      JDRF Greater Chesapeake and Potomac Chapter
 as Church Home and Infirmary of The City of Baltimore)

 ·      Church Home Corporation

 ·      Chesapeake Regional Information Systems for our Patients Inc
 (CRISP) (formerly known as Chesapeake Regional Information for Our Patients,
 Inc)

 ·      Greenspring Financial Insurance Limited

 ·      Healthcare Financial Management Association

 ·      Helix Resources Management, Inc

 ·      HH MedStar Health, Inc. (formerly Helix Health, Inc.)

 ·      Maryland Hospital Association Council on Financial Policy

 ·      MedStar Family Choice, Inc. (formerly Helix Family Choice, Inc.)

 ·      Parkway Ventures, Inc. (formerly Helixcare, Inc.)

 ·      Shah MSO JV

 

Save as set out above there are no further disclosures required pursuant to
Rule 17 or Schedule Two, paragraph (g) of the AIM Rules for Companies.

 

 

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, Dan Gee-Summons

 

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.thecranewaregroup.com

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