Craneware plc Trading Update (2943U)
17 January 2017 - 7:00AM
UK Regulatory
TIDMCRW
RNS Number : 2943U
Craneware plc
17 January 2017
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update
17 January 2017 - Craneware (AIM: CRW.L), the market leader in
Value Cycle solutions for the US healthcare market, provides an
update on trading for the six months ended 31 December 2016.
The Group is pleased to announce continued growth and expects to
report 15% increases in both revenue and adjusted EBITDA for the
six month period ended 31 December 2016, building on the return to
double digit growth reported in the year to 30 June 2016 and
slightly ahead of expectations.
Underlying sales continue to support this growth, with a
particularly strong Q2, post the US Election result, and a healthy
sales pipeline. In accordance with the Company's revenue
recognition policy the vast majority of revenue resulting from
sales made in the period will be recognised over future periods,
adding to the Group's long term visibility of revenue under
contract.
The Group continues to invest for the future. In the period it
has invested c$3m in its newly formed Employee Benefit trust and
over $1.0m in future product development, including its cloud-based
Trisus product suite and the new Craneware Healthcare Intelligence
product suite.
The Group's cash balance at the end of the period was maintained
at $45m (H116: $45m) after making these investments whilst
continuing a progressive dividend payment policy. In addition, the
Group retains an available funding facility from the Bank of
Scotland of up to $50m as it continues to investigate strategic
opportunities to further expand its Value Cycle solution.
With the growth in the period, continued cash generation and a
healthy sales pipeline, the Board is confident in meeting market
expectations for the full year.
The Company will announce its results for the six months ended
31 December 2016 on 7 March 2017.
Keith Neilson, CEO of Craneware plc commented, "There is
continued consensus in the US of the need to drive value in
Healthcare with ongoing support for the move to value-based care
and increasing consumerism. An impending change of government
always brings with it an element of uncertainty, it was therefore
particularly pleasing to see the acceleration in sales of our Value
Cycle solutions post the result of the US Presidential election.
Our Value Cycle software continues to help US Healthcare providers
meet the challenges they will face as they navigate the ongoing
re-imbursement model changes.
"We continue to invest in both our current solutions and in the
new products we are developing to expand our support to US
Healthcare providers as they pursue quality patient outcomes and
optimal financial performance.
"These supportive market drivers, our investment for the future
and our continued profitable growth, give management confidence in
its ability to deliver continued stakeholder value."
For further information, please contact:
Craneware Peel Hunt Alma
plc
+44 (0)131 +44 (0)20 +44 (0)208
550 3100 7418 8900 004 4218
Keith Neilson, Dan Webster Caroline Forde
CEO
Craig Preston, Adrian Trimmings Hilary Buchanan
CFO George Sellar Robyn McConnachie
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, Boston and Phoenix
employing over 200 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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January 17, 2017 02:00 ET (07:00 GMT)