Craneware plc Trading Update and Significant Contract Win (1640B)
January 08 2018 - 2:00AM
UK Regulatory
TIDMCRW
RNS Number : 1640B
Craneware plc
08 January 2018
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update and Significant Contract Win
8 January 2018 - 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 2017.
The Group is pleased to announce that it has continued to
perform strongly in the first half of the financial year as it
executes on its growth strategy. There has been strong underlying
sales growth which has been extended by a significant new contract
with one of the largest healthcare provider networks (the
'Network') in the US, further details provided below.
Renewals by dollar value have continued at over 100% in the
period. In accordance with the Company's revenue recognition
policy, the majority of the revenue resulting from both new and
renewal sales successes will be recognised over future periods,
adding significantly to the Group's long term visibility of revenue
under contract.
As a result, the Group expects to report increases in both
revenue and adjusted EBITDA in the range of 15% to 18% for the six
month period ended 31 December 2017, continuing the double digit
growth delivered in the prior year.
The Group maintains healthy cash reserves of over $50m (H117:
$45m) and has a further funding facility available from the Bank of
Scotland of up to $50m. The Group continues to investigate
opportunities to deploy these reserves.
With the growth in contracts signed in the period, continued
sales momentum and high levels of revenue visibility, the Board is
confident in meeting market expectations for the full year.
Significant Contract Win
This contract is expected to deliver in excess of $16m of
revenue over its initial five year term as Craneware's Value Cycle
solutions are utilised by over 75 new facilities across the
Network. Having previously contracted to utilise Craneware's
software in a small number of its hospitals, the customer carried
out an assessment of the potential financial and operational impact
Craneware's solution could bring to the entire Network. This has
resulted in the roll out of Craneware's software across the Network
with Craneware hosting the solution as part of the Network's
strategic financial performance plans.
Notice of Results
The Company will announce results for the six months ended 31
December 2017 on 6 March 2018.
Keith Neilson, CEO of Craneware plc, commented, "These results,
including a contract with one of the largest healthcare providers
in the US, demonstrate the ongoing momentum we are experiencing in
the business.
"The strength of our solutions and the value they deliver to all
strata of customers, including large and complex health systems,
allows us to support our customers as they address the challenges
resulting from the continued evolution of the US Healthcare market.
We are playing an increasingly strategic role in assisting
healthcare providers as they look to improve and sustain their
financial performance, whilst mitigating operational and compliance
risks.
"These factors combined with our financial strength and high
levels of visible revenue for future years, gives management
confidence in its ongoing ability to deliver increasing stakeholder
value this year and in the future."
For further information, please contact:
Craneware Peel Hunt Alma
plc
+44 (0)131 +44 (0)20 +44 (0)208
550 3100 7418 8900 004 4217
Keith Neilson, Dan Webster Caroline Forde
CEO
Craig Preston, Adrian Trimmings Hilary Buchanan
CFO George Sellar Robyn Fisher
Josh Royston
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
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 Pittsburgh
employing over 250 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
END
TSTBIGDBUSGBGIR
(END) Dow Jones Newswires
January 08, 2018 02:00 ET (07:00 GMT)
Craneware (LSE:CRW)
Historical Stock Chart
From Apr 2024 to May 2024
Craneware (LSE:CRW)
Historical Stock Chart
From May 2023 to May 2024