CRW Craneware Plc

Craneware plc

("Craneware" or the "Company")

H1 FY25 Trading Update, Director Appointment and Notice of Results

13 January 2025 - Craneware (AIM: CRW.L), the market leader in Value Cycle software solutions for the US healthcare market, is pleased to provide an update on trading for the six months ended 31 December 2024 ("H1 FY25").  

Trading Update

The Group has enjoyed another period of positive trading, meeting management's expectations of double-digit growth of c.10% to exceed $100.0m of revenue (H1 FY24: $91.2m), and adjusted EBITDA¹ of c.$30.3m (H1 FY24: $27.5m). Annual Recurring Revenue ("ARR^2") has, so far, grown by approximately 3% to c.$177m (H1 FY24: $171.4m), with continued sales momentum and Net Revenue Retention above 100%. These sales have included continuing success of the Trisus Platform Partner offerings, and the first major customer contract secured via the Microsoft Azure Marketplace.

The Group continues to deliver high levels of operating cash conversion, which has been used to invest in our product portfolio, reduce debt and interest costs, with total bank debt reduced to $31.6m (H1 FY24: $59.2m), whilst retaining healthy total cash reserves of $72.2m (H1 FY24: $63.9m). 

NED Appointment

The Company is pleased to announce the appointment of Susan Nelson as Non-Executive Director, with effect from 16 January 2025. Susan is an experienced senior US healthcare executive currently holding the role of Executive Vice President and Chief Financial Officer at MedStar Health, an $8.3 billion integrated healthcare system in the Maryland and Washington, D.C. region. MedStar Health is the medical education and clinical partner with Georgetown University. Susan's role includes responsibility for the health care system's finances, including reporting, planning, revenue cycle, capital management and investment activities, managed care contracting, business transformation, business development, enterprise analytics and performance improvement. 

Outlook

Following the election, US hospitals are now expecting a period of stability and investment in strategic growth, which the Board anticipates will provide a sustained demand environment for Craneware's offerings.

The strength of the Company's balance sheet, high levels of recurring revenue and strong cash generation provide Craneware with solid foundations, and the ability to fully absorb the impact of National insurance increases in the United Kingdom, as it executes on its growth strategy, capitalising on its strategic position at the heart of the US healthcare market. As a result, the Group continues to trade in line with current market expectations for the year ending 30 June 2025 and is pleased with the accelerated growth delivered in the period.

Notice of Results

Craneware will announce results for the six months ended 31 December 2024 on 11 March 2025.

Keith Neilson, CEO of Craneware plc, commented,

"We are pleased to have delivered another healthy first half performance, demonstrating our continued progression to sustainable double-digit growth, as customers increase their use of our Trisus platform and platform partner offerings. The pace of innovation taking place across our organisation in collaboration with Microsoft and Oracle is considerable, and we look forward to stepped increases in our joint marketing initiatives in the coming months.

"With our prior sales successes now converting into ARR growth, continued strong cash generation and an increasingly strategic position as powerful source of independent data and insights at the heart of the US healthcare market, we look to the future with confidence."  

¹ Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, share based payments and acquisition and integration related costs.

² Annual Recurring Revenue ("ARR") includes the annual value of licence and transaction revenues as at 31 December 2024 that are subject to underlying contracts and revenue is being recognised.

Additional information

The following information is being disclosed pursuant to Rule 17 and paragraph (g) of Schedule 2 of the AIM Rules for Companies in relation to the appointment of Susan Nelson to the Board.

Susan Kay Nelson (previously Susan Kay Longshore), aged 58, has been a director or partner of the following companies or partnerships during the five years preceding the date of this announcement:

Save as set out above there are no further disclosures required pursuant to Rule 17 or Schedule Two, paragraph (g) of the AIM Rules for Companies.

For further information, please contact:

About Craneware

The Craneware Group (AIM:CRW.L), is the market leader in value cycle solutions. For 25 years, we have collaborated with U.S. healthcare providers to optimize revenue integrity, pricing intelligence, decision support, labor productivity, business of pharmacy, and 340B program management. 

Customers choose Trisus®, a HITRUST- and SOC2 Type II-certified, SaaS platform, to achieve operational and financial excellence in pursuit of their healthcare mission - delivering quality care to their communities. The Craneware Group - Transforming the Business of Healthcare.

Learn more at www.thecranewaregroup.com