TIDMCRW
RNS Number : 0577A
Craneware plc
31 January 2022
Craneware plc
("Craneware" or the "Company" or the "Group")
Trading Update and Notice of Results
Expanded Market Opportunity demonstrated by First Cross
Sales
31 January 2022 - 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
2021 (H1 FY22).
Trading Update & Annual Recurring Revenue Growth
The Company is pleased to announce the first interim update for
the enlarged Craneware Group, following the acquisition of Sentry
Data Systems Inc ("Sentry") on 12 July 2021.
Group Revenues in the period have increased 110% to
approximately $80m with an adjusted EBITDA increase of 75% to over
$23m. The results include approximately a 5 month contribution from
Sentry and are in line with management's expectations.
Annual Recurring Revenue(1) has grown ahead of management's
expectations in the period to a new milestone of approximately
$165m (30 June 2021: $64.5m), demonstrating the resilience of our
business and our vital role in transforming the business of
healthcare. A contributor to this ARR has been modest organic
license revenue growth. However, the recent wave of Omicron and
reduced staffing levels have added to the pressure on hospitals and
has recently been more pronounced, leading to the Group witnessing
a slight elongation of the sales cycle and delays in professional
services, impacted by shortages of available staff on site at
hospitals. This means there is a reduced amount of professional
services revenues being recognised in the period. This trend has
tempered the overall organic growth during the period, but we
expect this to correct as the current pandemic-driven challenges
ease.
Post-Acquisition Margin Accretion
The combined Group adjusted EBITDA margin of 28.75% is tracking
to our target of returning to a 30% margin ahead of schedule, with
initial synergies mitigating near term industry salary inflationary
pressures. The nature of Craneware's multi-year SaaS contracts are
expected to provide further protection in the second half of the
year from these inflationary pressures as annual billings are
made.
Integration Update & First Cross Sales
The integration of Sentry Data Systems continues to progress
ahead of plan, and we are pleased to report the first cross sales
of each company's products into the others' customer base. The
integration of the management teams and associated operational
departments is nearing completion and the sales and technology
teams continue to track on target to be fully integrated by the end
of the current financial year.
Outlook
Whilst remaining cognisant of the challenges our customers
continue to face, our ARR, strong balance sheet, and expanded
market opportunity mean the Company remains on-course to deliver
results for the current year in line with management's
expectations.
Notice of Results
Craneware will announce results for the six months ended 31
December 2021 on 14 March 2022.
1 Annual Recurring Revenue includes the annual value of licence
and transaction revenues as at 31 December 2021 that are subject to
underlying contracts
Keith Neilson, CEO of Craneware plc, commented ,
"Our customers continue to be at the front-line in the evolving
pandemic. With a peak of Omicron cases thought to be appearing in
the US, the pressure on them through this human tragedy has only
increased, with resource and staffing constraints creating new
daily challenges. Craneware continues to be in awe of the bravery
and dedication we see from all our customers as their absolute
focus on selflessly serving their communities.
" As the new Craneware Group our aim is to transform the
business of U.S. healthcare . The global pandemic has highlighted
the importance of usable financial and operational data and it is
expected this realisation will drive future investment by
hospitals. Through our increased scale and data sets, we are even
better placed to provide innovative new ways to measurably impact
operational and financial performance and are increasingly
confident and energised by the opportunity ahead."
For further information, please contact:
Craneware plc +44 (0)131 550 3100
Keith Neilson, CEO
Craig Preston, CFO
Alma (Financial PR) +44 (0)20 3405 0205
Caroline Forde, Hilary Buchanan, Joe Pederzolli craneware@almapr.co.uk
Peel Hunt (NOMAD and Joint Broker) +44 (0)20 7418 8900
Dan Webster, Andrew Clark
Investec Bank PLC (Joint Broker) +44 (0)20 7597 5970
Patrick Robb, Henry Reast, Sebastian Lawrence
Berenberg (Joint Broker ) +44 (0)20 3207 7800
Mark Whitmore, Richard Andrews, Alix Mecklenburg-Solodkoff
About Craneware
We at the Craneware Group of companies, including our latest
additions Sentry Data Systems and Agilum Healthcare Intelligence,
passionately believe we can impact healthcare profoundly by
delivering the insights healthcare organizations need to also
transform the business of healthcare. Our shared vision is to be
the operational and financial partner for U.S. healthcare
providers.
Our combined suite of applications and industry-leading team of
experts help our customers contextualize operational, financial,
and clinical data, providing insights that clearly demonstrate what
great looks like. These value cycle insights deliver revenue
integrity and 340B compliance, as well as margin and operational
intelligence - something no other single partner can provide.
Together, approximately 40% of registered U.S. hospitals are now
our customers, including more than 2000 U.S hospitals and health
systems and almost 10,000 clinics and retail pharmacies. Our
customers are operating with a financial impact of nearly half a
trillion dollars. We have data sets from customers covering more
than 150 million unique patients encounters.
Learn more at craneware.com
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