REG - Craneware plc - FY23 Trading Update and Notice of Results

CranewareAnnouncement

17/07/2023 07:00

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RNS Number : 1380G  Craneware plc  17 July 2023

Craneware plc

 

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

 

FY23 Trading Update and Notice of Results

 

17 July 2023 - 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 2023 (FY23).

 

The Board is pleased to announce a positive close to the year, as customers
and partners began to look forward, beyond the macro difficulties of the
recent past. As a result, revenue for the year is expected to be towards the
upper end of current market expectations at approximately $174m, a 5% increase
over the prior year. This has delivered an adjusted EBITDA increase of
approximately 5% to over $54m which represents an EBITDA margin of 31% (FY22:
31%).

 

A healthy software revenue performance and continued high levels of customer
retention have seen Annual Recurring Revenue(1) ("ARR") growth in the second
half of the year, to approximately $169m (31 December 2022: $166.4m).

 

As at 30 June 2023, the Group maintained strong operating cash balances of
$46.9m (30 June 2022: $47.2m) and total bank debt of $83m (30 June 2022:
$111.6m). This further reduction in the overall levels of bank debt is in
response to the current interest rate environment and results in a Net
Debt/EBITDA ratio of 0.67x (FY22: 1.24x).

 

The Company is pleased to announce that it is extending the duration of its
share buyback programme for a further three months, under the same terms as
previously announced.

 

Outlook

 

With the sales experienced in the final quarter of the year delivering
incremental revenues, combined with further sales momentum, the Group has seen
a positive start to trading in the new financial year.

 

The breadth of solutions the Craneware Group can provide, as well as the power
of its operational and administrative platform and data, 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 early signs of
increasing customer confidence, leave the Group well positioned for FY24 and
beyond.

 

Notice of Results

 

Craneware will announce its results for the year ended 30 June 2023 on 5
September 2023.

 

Keith Neilson, CEO of Craneware plc, commented,

 

"Against the backdrop of the challenges impacting the US healthcare market
over recent years, it is pleasing to report a robust financial performance,
which is testament to the value of Craneware's offering and the hard work of
our team.

 

It is particularly encouraging to see the improving prospects across the US
healthcare landscape in recent months. We are seeing an increasing number of
opportunities enter our sales pipeline, which has been reflected in a positive
start to the current financial year.

 

We are confident in the demonstrable value our solutions can bring to the US
healthcare market. Supported by a strong balance sheet, high levels of revenue
visibility and improving market backdrop, we are well positioned to steadily
build on the healthy performance delivered this year."

 

 

(1) Annual Recurring Revenue ("ARR") includes the annual value of licence and
transaction revenues as at 30 June 2023 that are subject to underlying
contracts and where revenue is being recognised.

 

 

 

For further information, please contact:

 

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

 Alma (Financial PR)                              +44 (0)20 3405 0205
 Caroline Forde, Hilary Buchanan, Joe Pederzolli  craneware@almapr.co.uk

 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, Sebastian Lawrence

 Berenberg (Joint Broker)                         +44 (0)20 3207 7800
 Mark Whitmore, Richard Andrews, Dan Gee-Summons

 

 

About Craneware

 

We at the Craneware Group of companies, passionately believe we can impact
healthcare profoundly by delivering the insights healthcare organizations need
to also transform the business of healthcare. Our shared vision is to be the
operational and financial partner for U.S. healthcare providers.

 

Our combined suite of applications and industry-leading team of experts help
our customers contextualize operational, financial, and clinical data,
providing insights that clearly demonstrate what great looks like. These value
cycle insights deliver revenue integrity and 340B compliance, as well as
margin and operational intelligence - something no other single partner can
provide.

 

Together, approximately 40% of registered U.S. hospitals are now our
customers, including more than 2,000 U.S hospitals and health systems and
almost 10,000 clinics and affiliated retail pharmacies. Our customers are
operating with a financial impact of nearly half a trillion dollars. We have
data sets from customers covering more than 150 million unique patients
encounters.

 

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

 

 

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