TIDMCRW
RNS Number : 3189S
Craneware plc
08 July 2020
Craneware plc
("Craneware" or the "Company")
Trading Update
8 July 2020 - Craneware (AIM: CRW.L), the market leader in Value
Cycle solutions for the US healthcare market, provides an update on
trading to date for the year ended 30 June 2020.
Our customers have experienced unparalleled challenges since
COVID-19 began. The Company would like to pay tribute to the
bravery and dedication we have seen from our customers, who have
been at the forefront of dealing with this pandemic, selflessly
serving their communities.
Trading for the year ended 30 June 2020
In spite of the disruption caused by COVID-19, the Board expects
to report Total Revenue for the year of approximately $71.4m (FY19:
$71.4m) and adj. EBITDA of approximately $24.5m (FY19: $24.0m).
Trading in the first 9 months of the year, prior to the outbreak,
had been strong, with Total Sales tracking over 30% above the prior
year. The travel restrictions and lockdowns imposed as a result of
the outbreak impacted both sales, professional services, project
delivery, the completion of renewals and the associated up-sales in
the final quarter, resulting in Total Sales for the year being only
marginally ahead of the prior year at approximately $65m (FY19:
$63.1m). Customer churn in the year remained below 10%, in line
with our historic norms.
Throughout the year we have retained our focus on cost control,
whilst making sensible investments to deliver on the long-term
opportunities available to us. Since the outbreak, the Company has
utilised no material support from either the UK or US governments,
instead retaining and re-enforcing this rigour on cost-control.
With 40% of the Company's workforce normally being home-based,
the successful transition to homeworking of the remainder of the
teams in the US and UK prior to lockdown was achieved swiftly and
with no material disruption to either customer service or employee
productivity.
Liquidity - Well positioned for future opportunities
We maintain a strong balance sheet with no debt and cash
reserves of approx. $47.6m (30 June 2019: $47.6m). In addition, we
have undrawn debt facilities of $50m. The Company is well
positioned to continue its investment strategy whilst executing on
any market opportunities that arise. The Board's current
expectation is to pay a dividend for the year to 30 June 2020, to
be announced in September, in line with the Board's usual practice,
and will take into account market conditions at that time.
Outlook
The Company has continued to make progress on its long-term
strategic aim to become ubiquitous in US Hospitals, as the
intelligence layer sitting across all other systems, delivering the
information required to improve financial and operational
performance. The financial challenges hospitals are currently
facing, combined with the ongoing transition to value-based
reimbursement, means the impact and insights the Trisus platform
delivers to our customers are increasingly relevant. The global
pandemic has highlighted the importance of usable financial and
operational data and we believe this realisation will drive further
investment by hospitals in the future.
While the situation has eased in some areas, many healthcare
providers continue to be under considerable pressure and this
situation is likely to continue. Our customers continue to take
steps to create further resilience across their financial
operations and we are committed to partnering with them by
providing the tools, regulatory information and data to enable them
to do so. The Craneware data team is continuously monitoring
guidance regarding billing and coding for COVID-19 testing and
treatment and publishing in-depth regulatory bulletins, available
to both customers and non-customers. Our free-to-attend COVID-19
webinars have had record levels of attendees, demonstrating the
need across the market for this insight and guidance.
The Company continues to benefit from high levels of recurring
revenue, accounting for approximately 85% of revenues in any year.
We enter the new financial year with an annuity revenue base of
over $65m. We continue to have sales discussions with hospitals
across the US and are cautiously optimistic we are seeing the first
signs of sales cycles slowly normalising; however, we remain
cognisant of the ongoing macro uncertainties.
We believe both the Company and our customer base are strongly
placed to deal with the future impacts of this pandemic and for our
products to be part of the solution in terms of helping hospital
preparedness.
Keith Neilson, CEO of Craneware plc, commented,
" Many areas of the US through the last three months have faced
a rising death toll. Our customers have had their business
operations repurposed and completely disrupted to maximise capacity
to deal with anticipated demand for emergency services. In addition
to the clinical challenges, they have had to meet the reality of
declining hospital revenues due to the deferral of elective
procedures through the period which is only now starting to show
signs of recovery towards normal run rates.
"This pandemic has had a personal toll on many within the
healthcare industry and the wider community, however we have been
inspired during this period as we have seen the best of human
nature and are proud of our team's effort to support our customers;
strengthening the relationship between hospital provider
organisations and Craneware on both an individual and corporate
level.
"We believe the Trisus platform differentiates us from other
healthcare solutions vendors, providing substantial benefits for
our customers with the ability to meaningfully impact their
healthcare operations. This, as we have demonstrated, can deliver
substantial improvements to the financial effectiveness of US
hospitals and provides an opportunity for significant future growth
for Craneware.
"As we close our financial year, we continue to look to the
future with high levels of optimism in the resilience of the
Company, our team and that of our customer base."
For further information, please contact:
Craneware plc Peel Hunt (NOMAD & Investec Bank (Joint Alma (Financial
Joint Broker) Broker) PR)
+44 (0)131 550
3100 +44 (0)20 7418 8900 +44 (0)20 7597 5970 +44 (0)203 405 0205
Keith Neilson, Dan Webster Patrick Robb Caroline Forde
CEO
Craig Preston, George Sellar Sebastian Lawrence Robyn Fisher
CFO Andrew Clark Henry Reast Helena Bogle
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. 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
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July 08, 2020 02:00 ET (06:00 GMT)
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