Trading Update and Notice of Results
Source: RNS
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 expectations1 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
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