Craneware plc Trading Update and Notice of Results (7362D)

TIDMCRW

RNS Number : 7362D

Craneware plc

28 June 2019

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.

Craneware plc

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

Trading Update and Notice of Results

28 June 2019 - Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, provides an update on trading to date for the year ending 30 June 2019.

The Group has continued to make progress on its long-term strategic aim to become ubiquitous in US Hospitals, as the intelligence layer sitting across all other systems, delivering the information required to improve financial and operational performance. This has included the launch of three new products on the Trisus platform. However, whilst the Group continues to sign new contracts with hospitals of all strata, the timing and quantity of sales closed in the second half of the year have been lower than anticipated, as the market processed these launches.

As a result, revenue growth for the 12 month period over the prior year is expected to be approximately 6% and adjusted EBITDA growth approximately 10%. As flagged at the time of the Group's interim results, capitalised R&D has increased. In the year this will be approximately $9m (FY18: $4.7m), reflecting the Group's ongoing commitment to new product development (both recently released products and further development for the future). The EBITDA figure has also been adjusted for one-off exceptional costs of approximately $1.5m relating to professional fees for a significant and well-advanced acquisition opportunity that the Group decided not to pursue in the period. Renewal levels remain within our historic range and the Group maintains healthy cash reserves.

Notice of Results

Craneware will announce results for the financial year ended 30 June 2019 on 3 September 2019.

Keith Neilson, CEO of Craneware plc, commented,

"As we close our financial year, we continue to look to the future with high levels of confidence despite our short-term sales performance in the latter part of the year. We have a significant and growing pipeline, which we are focused on converting. As a board we are convinced that our strategy with the Trisus platform differentiates us from other healthcare solutions vendors, providing substantial benefits for our customers and will meaningfully impact the value of healthcare as a whole. This, as we have demonstrated, will result in substantial improvements to the financial effectiveness of US Hospital Provider Customers and therefore significant financial wins for Craneware in the future.

"This strategy, our financial strength and high levels of revenue visibility for future years combine to give the board confidence in Craneware's future."

For further information, please contact:

 
 Craneware plc    Peel Hunt        Investec Bank        Alma 
                  (NOMAD & Joint   (Joint Broker)       (Financial PR) 
                   Broker) 
 [phone]   [phone]   [phone]       [phone] 
  3100             8900             5970                 0212 
 Keith Neilson,   Dan Webster      Patrick Robb         Caroline Forde 
  CEO 
 Craig Preston,   George Sellar    Sebastian Lawrence   Hilary Buchanan 
  CFO 
                  Guy Pengelley    Henry Reast          Helena Bogle 
 

About Craneware

Craneware enables healthcare providers to improve margins and enhance patient outcomes so they can continue to provide quality outcomes for all.

Craneware is the leader in automated Value Cycle solutions that help US Healthcare provider organisations discover, convert and optimise assets to achieve best clinical outcomes and financial performance. Founded in 1999, Craneware is headquartered in Edinburgh, Scotland with offices in Atlanta and Pittsburgh employing over 320 staff. Craneware's market-driven, SaaS solutions normalise disparate data sets, bringing in up-to-date regulatory and financial compliance data to deliver value at the points where clinical and operational data transform into financial transactions, creating actionable insights that enable informed tactical and strategic decisions. To learn more, visit craneware.com and thevaluecycle.com.

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June 28, 2019 02:00 ET (06:00 GMT)