Craneware plc

("Craneware", the "Craneware Group", the "Company" or the "Group")

FY24 Trading Update and Notice of Results

18 July 2024 - Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, today provides an update on trading for the year ended 30 June 2024 (FY24).

The Board is pleased to announce a positive year for the Group. The ongoing investment in the Trisus platform has delivered a good sales performance in the year and, combined with our partner programs, we have delivered significant returns to the Group's US healthcare provider customer base. As a result, revenue for the year is expected to exceed $188m which is above the upper end of current market expectations, an 8% increase over the prior year (FY23: $174.0m). The Group also expects to deliver an adjusted EBITDA of at least $58m, a 6% increase over the prior year (FY23: $54.9m) and towards the top end of market expectations, continuing its delivery of an above 30% EBITDA margin.

This healthy sales performance and continued high levels of customer retention have delivered growth in Annual Recurring Revenue¹ (ARR) to $172m (30 June 2023: $169m), with additional growth expected as more of the sales and partner success convert to ARR.

Strong balance sheet and accelerated debt reduction

The Group's high levels of cash generation have allowed ongoing investment in the future of the business while at the same time the Group has:

The Group has also retained healthy cash reserves of $34.6m at 30 June 2024 (FY23: $78.5m).

Outlook

The strong sales performance during the year demonstrates the strength of the Trisus platform, increasing partner success and the unique position the Group holds in its market.

The breadth of solutions the Craneware Group can provide though its Trisus platform, combined with the new market opportunities, accelerated innovation and exploration of new AI-based applications that will result from the recently announced alliance with Microsoft, give the Board confidence in the Group's ability to provide the insights its customers need to deliver greater value healthcare to their communities.

The Group's balance sheet strength, high levels of ARR and returns generated for our customers, leave the Group well positioned for FY25 and beyond.

Notice of Results

Craneware will announce its results for the year ended 30 June 2024 on 3 September 2024.

Keith Neilson, CEO of Craneware plc, commented,

"The drive for better value in healthcare continues to dominate strategic priorities within the US healthcare market. Our positive financial results reflect the demonstrable impact the Craneware Group can make, in helping our customers meet these priorities.

The exciting growth and expansion opportunities that our new alliance with Microsoft brings to the Group, combined with our continued investment in the Trisus platform, the considerable data assets we maintain, and our independence within the US healthcare market mean we are uniquely placed to support all US hospitals.  

Supported by a strong balance sheet, high levels of revenue visibility and the partnerships and alliances we are developing, we are confident this year's healthy performance is evidence of the expanded and long-term opportunities that are ahead of us."

Notes

 ¹ Annual Recurring Revenue ("ARR") includes the annual value of licence and transaction revenues as at 30 June 2024 that are subject to underlying contracts and where revenue is being recognised.

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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.craneware.com