Craneware plc Trading Update and Notice of Results (9952E)

TIDMCRW

RNS Number : 9952E

Craneware plc

13 July 2021

Craneware plc

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

Trading Update and Notice of Results

Strong Trisus adoption and acquisition of Sentry provides positive basis for accelerated growth

13 July 2021 - 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 year ended 30 June 2021 (FY21).

The positive sales momentum experienced in the first half of the year continued into the second half, with the Board expecting to report an increase in New Sales of approximately 40% to over $42m (FY20: $30.4m). In accordance with Craneware's revenue recognition policy, the majority of the revenue resulting from both new sales and existing contract renewal will be recognised over future periods, providing the Group with long term visibility of revenue under contract.

Total Revenue and adjusted EBITDA for the year is expected to have increased by greater than 5% and 6% respectively (FY20: Revenue $71.5m: adj. EBITDA $25.2m). The Group's customer retention rate has remained above 90%, building the foundation for a return to double-digit organic growth in the future .

Craneware continues to invest in the expansion of its cloud-based Financial and Operational performance platform, Trisus, and capitalisation of R&D costs have been maintained at broadly the same levels as in prior years. The success of this investment has seen 900 current customers migrate to products on the Trisus platform.

The Group's cash reserves remain healthy, delivering a cash conversion rate of 90%, in line with the prior year. The Group maintains a strong balance sheet, with cash of $235.6m at 30 June 2021, including the net funds of $187.4m received from the equity raise in anticipation of the acquisition of Sentry Data Systems ("Sentry") of Florida, (FY20: $47.9m).

Completion of Sentry Acquisition

The Group is delighted to announce today the successful completion of the acquisition of Sentry, a leader in pharmacy procurement, compliance and utilisation management, providing immediate additional scale to Craneware's operations, expanding its coverage of U.S. hospitals, enhancing its pharmacy offering and cementing Craneware's position as a leading provider of value cycle solutions to the US healthcare market.

Following the acquisition, Craneware now serves nearly 40 percent of U.S. hospitals and more than 10,000 clinics and retail pharmacies across all the major pharmacy brands as well as local community pharmacies and clinics.

With the quality and breadth of the combined data sets from both companies, Craneware will deliver far-reaching actionable insights for better operational and strategic decisions, enabling further efficiencies in provider performance so Craneware's customers can focus on serving their communities and healthcare missions.

The management team will host a presentation this morning at 9am BST to discuss the acquisition. Any analysts or investors who wish to join should email [e-mail] to register. A copy of the presentation will be available on the Company's website following the meeting.

Outlook

The financial challenges hospitals are currently facing, combined with the ongoing transition to value-based reimbursement, means the impact and insights that Craneware's Trisus platform delivers are increasingly relevant. The global pandemic has highlighted the importance of usable financial and operational data and it is expected this realisation will drive further investment by hospitals in the future.

The Group continues to see significant new opportunities entering the sales pipeline and the Board is confident in the Group's ability to deliver double-digit organic growth in the future .

Notice of Results

Craneware will announce results for the year ended 30 June 2021 on 21 September 2021.

Keith Neilson, CEO of Craneware plc commented ,

"We are pleased by the continued positive sale performance in the year and strong adoption of our Trisus platform, paving the way for accelerated future growth.

"The successful conclusion of the acquisition of Sentry Data Systems marks a transformational point in our journey, considerably expanding our customer base, data sets, product offering and market presence. Together, we will offer healthcare organisations innovative new ways to measurably impact operational and financial performance and generate sustainable margins that can be re-invested in providing better care for those who are in need.

"Our expanded opportunity and positive sales momentum provide us with considerable excitement and confidence as we work with the Sentry team to transform the business of U.S. healthcare."

For further information, please contact:

 
 Craneware plc                                             [phone] 
 Keith Neilson, CEO 
 Craig Preston, CFO 
 
 Alma (Financial PR)                                       [phone] 
 Caroline Forde, Hilary Buchanan, Robyn Fisher,            [e-mail] 
  Joe Pederzolli 
 
 Peel Hunt (NOMAD and Joint Broker)                        [phone] 
 Dan Webster, George Sellar, Andrew Clark 
 
 Investec Bank PLC (Joint Broker)                          [phone] 
 Patrick Robb, Henry Reast, Sebastian Lawrence 
 
 Berenberg (Joint Broker )                                 [phone] 
 Mark Whitmore, James White, Alix Mecklenburg-Solodkoff 
 

About Sentry Data Systems, Inc.

Sentry Data Systems, Inc. is a pioneer in providing technology solutions that help healthcare providers address their three biggest challenges: reducing total cost of care, managing compliance and producing better quality. Thousands of hospitals and care locations across the country rely on Sentry's integrated platform for their solutions, which provide decision support for millions of unique patients and have helped hospital systems and IDNs realize billions of dollars in documented savings.

About Craneware

Craneware (AIM: CRW.L), the leader in automated value cycle solutions, collaborates with U.S. healthcare providers to plan, execute and monitor financial and operational performance so they can continue to drive better outcomes for the communities they serve. Craneware's Trisus platform combines revenue integrity, cost management and decision enablement into a single SaaS-based platform. Our flagship solution, Chargemaster Toolkit(R), continually earns KLAS recognition in the Revenue Cycle - Chargemaster Management category and is part of our value cycle management suite, which includes charge capture, strategic pricing, claims analytics, patient engagement, revenue recovery and retention, and cost and margin intelligence solutions.

Craneware's Pharmacy ChargeLink solution helps U.S. healthcare providers ensure that administered hospital medications are accurately coded, billed and reimbursed at an optimal level. Business algorithms compare units purchased with the volume billed and reimbursed to help organisations more quickly identify charge capture problems and better manage potential compliance risks.

Learn more at craneware.com.

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July 13, 2021 02:00 ET (06:00 GMT)