TIDMCRW
RNS Number : 1939N
Craneware plc
19 January 2023
Craneware plc
("Craneware", "The Craneware Group", the "Company" or the
"Group")
Trading Update and Notice of Results
19 January 2023 - Craneware (AIM: CRW.L), the market leader in
Value Cycle solutions for the US healthcare market, today issues a
trading update for the six months ended 31 December 2022 (H1
FY23).
Trading Update
Group Revenues in H1 FY23 are expected to increase by 6% to
approximately $84.7m (H1 FY22: $80.2m) and adjusted EBITDA by 8% to
$25.5m (H1 FY22: $23.7m).
Software revenues remain robust and we have seen bookings across
our product offerings, despite our end market suffering the effects
of inflationary pressures as it continues to recover from the
pandemic. Professional services revenues, however, continue to be
impacted and have remained at 8% of total revenues, rather than
seeing growth back to the more typical level of 15%.
Our ongoing cost control across the Group has delivered growth
in adjusted EBITDA in line with our expectations and we expect to
deliver full year adjusted EBITDA in line with Board
expectations.
The same market factors, combined with our normal seasonality,
have resulted in cash reserves of $38.6m (H1 FY22: $41.7m), and
total Bank Debt of $107.9m (H1 FY22: $114.6m).
In order to better align future growth of Annual Recurring
Revenue ("ARR") to near term revenue growth and facilitate the
future calculation of a Net Revenue Retention metric, the
calculation methodology of the Group's ARR KPI has been aligned to
only include bookings that have generated revenue by the reporting
date. This primarily relates to the exclusion of contract pharmacy
bookings where go live has not yet happened and therefore they have
not contributed to revenue in the period.
As a result, ARR(1) at H1 FY23 is $166.4m , demonstrating the
Group's continued high levels of contracted revenue visibility.
Outlook
Whilst we expect to deliver on the Board's adjusted EBITDA
expectation, in light of the ongoing impact on professional
services revenue, the Board believes it to be prudent to presume
that professional services contribution will not recover in the
current year to historic levels, impacting the overall level of
Group revenue growth.
Adjusted EPS continues to be impacted by the recent significant
increases in interest rates and we expect this to continue in the
second half.
The Group remains financially strong with healthy cash reserves
and a solid foundation of Annual Recurring Revenue. This, combined
with the breadth of solutions we can provide, the scale of data
flowing through our platform and the industry drive to achieve
better value in healthcare, means the Company remains confident in
its ability to deliver double digit growth rates as these headwinds
dissipate.
Notice of Results
Craneware will announce results for the 6 months ended 31
December 2022 on 6 March 2023.
(1) Annual Recurring Revenue ("ARR") includes the annual value
of licence and transaction revenues as at 31 December 2022 that are
subject to underlying contracts and where revenue is being
recognised.
Keith Neilson, CEO of Craneware plc, commented,
"Healthcare providers, both globally and in the US, continue to
face many challenges, building back post pandemic and coping with
inflationary pressures. Against this backdrop, we have delivered
another robust performance, growing revenues and adjusted EBITDA,
while maintaining a strong balance sheet and high levels of
recurring revenue. Through the increased financial and operational
insight our offerings provide our customers, we are well placed to
support them through these difficult times and ultimately deliver
on our growth ambitions."
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, Dan Gee-Summons
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 organisations need to also
transform the business of healthcare. Our shared vision is to be
the operational and financial partner for US healthcare
providers.
Our combined suite of applications and industry-leading team of
experts help our customers contextualise 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 US hospitals are now
our customers, including more than 12,000 US hospitals, health
systems and affiliated retail pharmacies and clinics. 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 www.thecranewaregroup.com
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