Last checked at 13 Jan 2009 07:00
Craneware plc
("Craneware" or the "Company")
H1 TRADING UPDATE AND CONTRACT WIN
13 January 2009 - Craneware plc, (AIM: CRW) a leader in financial improvement software solutions for the US healthcare market, is pleased to give an update today on trading during the half year to 31 December 2008.
The Board is pleased to announce that Craneware has continued to deliver solid growth in the first half of the year and expects to report Interim results in line with management expectations.
In addition to revenue growth of circa 20%, the total value of new contracts signed has increased by over 50% as compared to the corresponding period in FY 2008. Craneware has also taken advantage of the short term benefits of the strengthening US Dollar to accelerate investment in the areas of Product Management and Marketing, whilst continuing to deliver operating profit in line with management expectations. During the half, the Company's flagship product, Chargemaster Toolkit®, was once again named top in its class by the prestigious industry research house KLAS in the US, reaffirming Craneware's market leading position.
The rollout of major contract wins secured at the end of the previous financial year are on schedule with significant ROI being found for these clients, particularly with the Pharmacy ChargeLink™ product. Whilst the Board remains conscious of the wider economic conditions, the growing financial and legislative pressures being exerted on US healthcare organisations mean Craneware has entered the second half of the year with a strong sales pipeline for Revenue Cycle products and the newer Supply Management and Strategic Pricing product families.
This together with the Company's annuity revenue model and high ongoing renewal rates, gives the Board confidence in Craneware's performance for the full year.
The Company is also pleased to announce it signed a significant contract for a 21 facility hospital system in the state of New York during the last days of the half with planned implementation throughout the remainder of FY09. The full impact of the revenue from this contract will not be seen until FY2010.
Craneware will be announcing Interim results on Tuesday 24th February 2009.
Keith Neilson, CEO of Craneware, commented, "We are delighted with Craneware's continuing strong progress, delivering revenues and profits in line with management's expectations whilst investing in the future through accelerated marketing and product development. This additional investment in our products and our marketing of them means our products remain focused on meeting the evolving needs of our customers, strengthening our leading position as a provider of financial improvement software to US hospitals.
"Despite the challenges faced by the wider economic environment we believe the compelling and demonstrable ROI of our financial improvement software solutions, including our new product families, will result in hospitals continuing to turn to Craneware to help mitigate the general financial malaise and manage growing legislative pressures. We look forward to updating shareholders at our Interim results in February."
For further information, please contact:
| Craneware plc | KBC Peel Hunt | ICIS |
| +44 (0)1506 407 666 | +44 (0)20 7418 8900 | +44 (0)20 7651 8688 |
| Keith Neilson, CEO | Oliver Scott | Caroline Evans-Jones |
| Craig Preston, CFO | Nicholas Marren | Mike Smith |
About Craneware
Founded in 1999, Craneware has headquarters in Livingston, Scotland, with offices in Florida, Arizona and Kansas, employing over 100 staff. Craneware is a recognised leader of solutions that improve the financial performance of US healthcare organisations. Craneware partners with healthcare organisations to improve returns, increase productivity and manage risk, driving better financial and operational performance using market-driven revenue management solutions. By enhancing revenue capture processes, Craneware solutions allow those organisations to optimise reimbursement, improve operational efficiency, and support compliance.