Craneware Regulatory News (CRW)

Craneware plc

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

FY22 Trading Update and Notice of Results

26 July 2022 - 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 2022 (FY22).

Trading Update

The Company is pleased to announce this update for the enlarged Craneware Group, following the acquisition of Sentry Data Systems Inc ("Sentry") on 12 July 2021. Group Headline Revenues in the period have increased 119% to approximately $165.5m with an adjusted EBITDA increase of 85% to over $50m. The results include an approximate 11-month contribution from Sentry and are in line with management's expectations2.

Software revenue performance and customer retention continues to be robust, as demonstrated by the growth in underlying Annual Recurring Revenue1 ("ARR") to $170m (31 December 2021: $165m). As reported at the time of the Group's Interim Results, professional services revenues have been affected by the impact of the COVID pandemic on hospital workforce and operations. We anticipate this situation normalising in the near term.

As at 30 June 2022, the Group had strong cash reserves of $47.2m (31 December 2021: Cash of $41.7m) and net debt of $63.1m (31 December 2021: net debt $72.9m) representing circa 1.25 times reported adjusted EBITDA.

This balance sheet strength, combined with our high levels of ARR and the potential for an acceleration in professional services revenue, leaves the Group well positioned for FY23 and beyond.

Post-Acquisition Integration Update and Margin Accretion

The integration of Sentry Data Systems has been completed, the relevant teams have now been combined and the enlarged sales team continues to successfully execute on the significant cross-sale opportunity. As a result, the combined Group adjusted EBITDA margin target of 30% has been achieved ahead of schedule, with the synergies achieved to date and the multi-year SaaS nature of Craneware's contracts mitigating the industry salary inflationary pressures.

Outlook

Whilst remaining cognisant of the challenges our customers and partners continue to face, the strength of the newly enlarged Craneware Group, the breadth of solutions we can provide and the scale of data flowing through our platform, the Board remains confident in its ability to address the expanded market opportunity presented.

Notice of Results

Craneware will announce results for the year ended 30 June 2022 on 19 September 2022.

Keith Neilson, CEO of Craneware plc, commented,

"As the U.S. healthcare market and our customers continue to work tirelessly to overcome the challenges caused by the pandemic, the importance of useable financial and operational data becomes ever clearer. Now, more than ever, hospitals and pharmacies need the insight and capabilities our offerings can give them, to ensure their financial strength and ability to continue to deliver outstanding care to their communities.

"It is now just over a year since we acquired Sentry and we are delighted with how the teams have come together behind our shared vision to transform the business of U.S. healthcare. With $170m in ARR this year, approximately 40% of all U.S hospitals as customers and a considerably increased scale and offering, we look to the future with confidence."

1 Annual Recurring Revenue ("ARR") includes the annual value of licence and transaction revenues, that are subject to underlying contracts, as at 30 June 2022.

2 Expectations pro-rated to take account of an ownership period of Sentry less than 12 months.

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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 2,000 U.S hospitals and health systems and almost 10,000 clinics and affiliated 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 www.craneware.com