Craneware plc Trading Update and Notice of Results (9145Z)

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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                                      [phone] 
 Keith Neilson, CEO 
 Craig Preston, CFO 
 
 
 Alma Strategic Communications                      [phone] 
 Caroline Forde, Joe Pederzolli, Kinvara Verdon     [e-mail] 
 
 
 Peel Hunt (NOMAD and Joint Broker)                 [phone] 
 N eil Patel, Paul Gillam, Richard Chambers 
 
 
 Investec Bank PLC (Joint Broker)                   [phone] 
 Patrick Robb, Henry Reast, Cameron MacRitchie 
 
 Berenberg (Joint Broker )                          [phone] 
 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 

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January 17, 2024 02:00 ET (07:00 GMT)