Craneware plc Trading Update and Notice of Results (6563A)
January 23 2020 - 2:00AM
UK Regulatory
TIDMCRW
RNS Number : 6563A
Craneware plc
23 January 2020
Craneware plc
("Craneware" or the "Company" or the "Group")
Trading Update and Notice of Results
Strong new sales performance indicates return to growth
23 January 2020 - 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
2019.
The Group has delivered a strong new sales performance in the
first half of the financial year, with new sales over 30% ahead of
H1 FY19, driven by an increased number of contracts being secured,
as the Company worked through the backlog of contracts delayed from
H2 FY19. There were good levels of Trisus sales activity, and a
strong performance from the Company's core product, Chargemaster
Toolkit.
The actual number of hospitals renewing their contracts in the
period is significantly above the prior year. However, our KPI
"customer renewals by dollar value" when analysed for the six month
period is 73%, which, while lower than our historic annual range of
85% - 115%, reflects the disproportionate impact the loss of a
large customer has when measuring this statistic over a six month
period.
In accordance with the Company's revenue recognition policy, the
majority of the revenue resulting from both new and existing
contract renewal sales will be recognised over future periods,
providing the Group with long term visibility of revenue under
contract.
The Group expects to report revenue for H1 FY20 at similar
levels to the comparator period (H1 FY19: $35.8m), in line with
management expectations together with approximately 10% growth in
adjusted EBITDA (H1 FY19: $11.6m).
The Group continues to invest in its product suite, including
its new cloud-based Trisus solutions. Capitalisation for R&D
costs has been maintained at the same dollar level as the previous
two six month periods.
The Group maintains healthy cash reserves. Positive operating
cash conversion combined with the normal seasonal pattern in
collections and outflows, has seen operating cash conversion over
the 12 months to 31 December 2019 of over 100% and the Board
expects this trend to continue.
The Company has access to a further funding facility from the
Bank of Scotland of up to $50m and the Board continues to
investigate potential acquisition opportunities, in line with our
stated strategy.
The strong sales performance in the period, positive market
environment, continued sales momentum and high levels of revenue
visibility mean the Board expects to meet market expectations for
the full year ending 30 June 2020.
Notice of Results
The Company will announce results for the six months ended 31
December 2019 on 3 March 2020.
Keith Neilson, CEO of Craneware plc, commented,
"We have been pleased by the strong new sales performance and
have seen an indication that sales cycles are shortening, which
bodes well for continued sales momentum in the second half of the
year. This trading performance and progress with the Trisus
platform demonstrate the renewed momentum we are experiencing in
the business.
"The ongoing transition to value-based care is a powerful
underlying driver for our existing solutions and Trisus platform.
We are committed to providing our customers with the tools they
require to continue to deliver outstanding care to their
communities and are passionate about the central role we will play
in the ongoing evolution of the US healthcare market.
"The positive sales performance in the first half, combined with
our extensive customer base, innovative product offering, high
recurring revenues and financial strength, mean the Board expects
to meet market expectations for the year and is confident in our
ability to deliver long-term, sustainable growth."
For further information, please contact:
Craneware plc Peel Hunt Investec Bank Alma
(NOMAD & Joint (Joint Broker) (Financial PR)
Broker)
+44 (0)131 550 +44 (0)20 7418 +44 (0)20 7597 +44 (0)203 405
3100 8900 5970 0205
Keith Neilson, Dan Webster Patrick Robb Caroline Forde
CEO
Craig Preston, George Sellar Sebastian Lawrence Hilary Buchanan
CFO
Andrew Clark 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 350 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEAEFAADKEEAA
(END) Dow Jones Newswires
January 23, 2020 02:00 ET (07:00 GMT)
Craneware (LSE:CRW)
Historical Stock Chart
From Jun 2024 to Jul 2024
Craneware (LSE:CRW)
Historical Stock Chart
From Jul 2023 to Jul 2024