TIDMCRW
RNS Number : 2322M
Craneware plc
20 January 2021
Craneware plc
("Craneware" or the "Company" or the "Group")
Trading Update and Notice of Results
Continued sales momentum and return to growth
20 January 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 six months ended 31 December
2020 (H1 FY21).
The Group has delivered a strong performance in the first half
of the year against the ongoing backdrop of the pandemic and a
volatile dollar exchange rate. The increased sales momentum has
resulted in growth at both the revenue and adjusted EBITDA levels
of greater than 5% compared to the first half of the prior year
(HY20 Revenue: $35.9m, adjusted EBITDA $12.7m). The Group secured
new sales at a significantly higher level than in the first half of
the prior year; the Group's customer retention rate has remained
above 90% and the dollar renewal rate of customers at the end of
their multi-year contracts has returned to approximately 100%; all
building the foundation for a return to double-digit growth in the
future .
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.
Craneware continues to invest in the expansion of its
cloud-based Financial and Operational performance platform, Trisus,
and capitalisation for R&D costs has been maintained at broadly
the same level as prior periods. The Group's cash reserves remain
healthy, delivering ongoing cash conversion rate in excess of
100%.
The Group continues to see significant new opportunities
entering the sales pipeline and the Board is confident in the
continued positive performance of the business and its ability to
meet current market expectations(1) for the full year ending 30
June 2021 while being cognisant of the macro environment.
Notice of Results
Craneware will announce results for the six months ended 31
December 2020 on 1 March 2021.
(1) Company compiled, publicly available market expectations
comprises the published estimates of 5 analysts from Peel Hunt,
Investec, Berenberg, Panmure Gordon and N+1 Singers. For FY21:
Revenue of $74m (range $71.5m to $76m) and Adjusted EBITDA of
$25.3m (range $23.7m to $27m)
Keith Neilson, CEO of Craneware plc, commented ,
"Our customers continue to be on the front line of the COVID-19
pandemic, selflessly serving their communities. Supporting them and
the phenomenal work their teams have done in caring for their
communities and now rolling out vaccines, has been, and will
continue to be, our top priority. I am immensely proud of the
efforts of our team, who have ensured we have delivered for our
customers when they have needed us the most."
"We are pleased to report a return to growth at both the revenue
and EBITDA levels, following the continued positive sales momentum.
We remain cognisant of the ongoing macro uncertainties, but with a
strong balance sheet, high levels of recurring revenue, expanding
product offering and healthy sales pipeline, we are in a strong
position as we enter the second half of the year."
" We are committed to providing our customers with the tools
they require to improve their operational efficiency and margin, so
they can continue investing in providing quality care for their
communities. We are passionate about the central role we will play
in the ongoing evolution of the US healthcare market and look to
the future with confidence."
For further information, please contact:
Craneware plc
Keith Neilson, CEO
Craig Preston, CFO
+44 (0)131 550 3100
Alma (Financial PR)
Caroline Forde, Robyn Fisher, Helena Bogle, Joe Pederzolli
+44 (0)20 3405 0212
craneware@almapr.co.uk
Peel Hunt
(NOMAD and Joint Broker)
Dan Webster, George Sellar, Andrew Clark
+44 (0)20 7418 8900
Investec Bank PLC
(Joint Broker)
Patrick Robb, Henry Reast, Sebastian Lawrence
+44 (0)20 7597 5970
Berenberg
(Joint Broker)
Mark Whitmore, James White, Alix Mecklenburg-Solodkoff
+44 (0)20 3207 7800
About Craneware
Craneware (AIM: CRW.L), the leader in automated value cycle
solutions, collaborates with U.S. healthcare providers to plan,
execute and monitor value-based economic performance. Our passion
and purpose is to impact healthcare profoundly by improving
healthcare providers' operational efficiency and margin, so they
can continue investing in providing quality care for their
communities.
Founded in 1999, Craneware is headquartered in Edinburgh,
Scotland with offices in Atlanta and Pittsburgh employing over 350
staff. Craneware's value cycle management suite includes charge
capture, strategic pricing, patient engagement, claims analytics,
revenue recovery and retention, and cost and margin intelligence
solutions.
Learn more at www.craneware.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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEAPFNFSAFEFA
(END) Dow Jones Newswires
January 20, 2021 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