REG - Craneware plc - Trading Update and Notice of Results

CranewareAnnouncement

17/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240117:nRSQ9145Za&default-theme=true

RNS Number : 9145Z  Craneware plc  17 January 2024

Craneware plc

("Craneware", "The Craneware Group", the "Company" or the "Group")

 Trading Update, Notice of Results and extension of the share buyback
programme

17 January 2024 - 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 2023 (H1 FY24).

 

Trading Update

The Group has seen an acceleration in revenue growth in the period against an
improving market backdrop, as US Hospitals and Healthcare re-focus on their
strategic futures. As a result, revenue has grown by 8% to c.$91m (H1 FY23:
$84.7m), and adjusted EBITDA has increased 8% to c.$27.5m (H1 FY23: $25.5m),
in line with Board expectations. With much of the sales success in the period
still to convert to revenue, Annual Recurring Revenue ('ARR(1)') has grown
approximately 3% to c.$171.4m (H1 FY23: $166.4m) whilst retaining a Net
Revenue Retention of 100%.

The Group has continued to utilise its cash reserves to reduce debt and
interest costs. The resulting lower interest rate charges combined with the
growth in the period, partially offset by increased UK corporation tax, share
based payments and amortisation, has seen Adjusted EPS return to growth of
c.3%, (H1 FY23 -6%), reversing the reduction experienced in the prior
year.

The Group maintains a strong balance sheet, with total bank debt reduced to
$59.2m (H1 FY23: $107.9m), and healthy total cash reserves of $63.9m (H1 FY23:
$90.8m).

Share Buyback

The Board has agreed it is appropriate to extend the share buyback programme,
due to expire on 17 January 2024, for a further three months to 17 April 2024,
under the same terms as previously announced.

Outlook

The Group's investment in the Trisus platform, along with the recent launch of
its optimisation suites and innovative new partnerships, means it has entered
the second half of the year in a strong position to benefit from the
increasing confidence in its market. Craneware continues to see significant
new opportunities to support its customers as they strive to deliver better
value in US Healthcare.

The solid foundation of ARR combined with the breadth of solutions within the
Trisus platform and the scale of data flowing through it, means the Company
remains confident in the accelerating growth momentum and the return to double
digit growth rates in the near term.

Notice of Results

Craneware will announce results for the six months ended 31 December 2023 on 4
March 2024.

Keith Neilson, CEO of Craneware plc, commented,

"With US healthcare and our hospital customers re-focusing on the future, the
drive to better value in healthcare has returned to the forefront of their
strategic priorities and we are pleased to see the returning confidence having
a positive impact on our financial results.

"The importance of digitalisation, to meet these challenges, has never been
clearer. With approximately 40% of all US hospitals as customers, our
considerable data assets and expanded offering allow us to derive meaningful
insights for them to improve their operational efficiency, ensure their
financial strength and continue to deliver outstanding care to their
communities.

"Our investments made in prior years in the move to the Cloud and our Trisus
platform, mean we are well positioned to be the strategic partner US Hospitals
and pharmacies need, now and in the future, and we look forward with
confidence."

 

(1) Annual Recurring Revenue ("ARR") includes the annual value of licence and
transaction revenues as at 31 December 2023 that are subject to underlying
contracts and revenue is being recognised.

 

For further information, please contact:

 

 Craneware plc                                    +44 (0)131 550 3100
 Keith Neilson, CEO
 Craig Preston, CFO

 Alma Strategic Communications                    +44 (0)20 3405 0205
 Caroline Forde, Joe Pederzolli, Kinvara Verdon   craneware@almastrategic.com

 Peel Hunt (NOMAD and Joint Broker)               +44 (0)20 7418 8900
 Neil Patel, Paul Gillam, Richard Chambers

 Investec Bank PLC (Joint Broker)                 +44 (0)20 7597 5970
 Patrick Robb, Henry Reast, Cameron MacRitchie
 ( )
 Berenberg (Joint Broker)                         +44 (0)20 3207 7800
 Mark Whitmore, Richard Andrews, Dan Gee-Summons

 

 

About Craneware

 

The Craneware Group (AIM:CRW.L), the market leader in automated value cycle
solutions, including 340B management, collaborates with U.S. healthcare
providers to plan, execute, and monitor operational and financial performance
so they can continue to deliver quality care to their communities. Customers
choose The Craneware Group's Trisus data and applications platform as their
key to navigating the journey to financially sustainable value-based care.
Trisus combines revenue integrity, cost management, 340B performance, and
decision enablement into a single, SaaS-based platform. Trisus Chargemaster
secured top ranking in the Chargemaster Management category of the "2023 Best
in KLAS Awards: Software & Services" and is part of an extensive value
cycle management suite. The Craneware Group - transforming the business of
healthcare.

 

Learn more at www.thecranewaregroup.com (http://www.thecranewaregroup.com)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBFMMTMTABTAI