Last checked at 8 Jan 2018 07:00
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update and Significant Contract Win
8 January 2018 - Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, provides an update on trading for the six months ended 31 December 2017.
The Group is pleased to announce that it has continued to perform strongly in the first half of the financial year as it executes on its growth strategy. There has been strong underlying sales growth which has been extended by a significant new contract with one of the largest healthcare provider networks (the 'Network') in the US, further details provided below.
Renewals by dollar value have continued at over 100% in the period. In accordance with the Company's revenue recognition policy, the majority of the revenue resulting from both new and renewal sales successes will be recognised over future periods, adding significantly to the Group's long term visibility of revenue under contract.
As a result, the Group expects to report increases in both revenue and adjusted EBITDA in the range of 15% to 18% for the six month period ended 31 December 2017, continuing the double digit growth delivered in the prior year.
The Group maintains healthy cash reserves of over $50m (H117: $45m) and has a further funding facility available from the Bank of Scotland of up to $50m. The Group continues to investigate opportunities to deploy these reserves.
With the growth in contracts signed in the period, continued sales momentum and high levels of revenue visibility, the Board is confident in meeting market expectations for the full year.
Significant Contract Win
This contract is expected to deliver in excess of $16m of revenue over its initial five year term as Craneware's Value Cycle solutions are utilised by over 75 new facilities across the Network. Having previously contracted to utilise Craneware's software in a small number of its hospitals, the customer carried out an assessment of the potential financial and operational impact Craneware's solution could bring to the entire Network. This has resulted in the roll out of Craneware's software across the Network with Craneware hosting the solution as part of the Network's strategic financial performance plans.
Notice of Results
The Company will announce results for the six months ended 31 December 2017 on 6 March 2018.
Keith Neilson, CEO of Craneware plc, commented, "These results, including a contract with one of the largest healthcare providers in the US, demonstrate the ongoing momentum we are experiencing in the business.
"The strength of our solutions and the value they deliver to all strata of customers, including large and complex health systems, allows us to support our customers as they address the challenges resulting from the continued evolution of the US Healthcare market. We are playing an increasingly strategic role in assisting healthcare providers as they look to improve and sustain their financial performance, whilst mitigating operational and compliance risks.
"These factors combined with our financial strength and high levels of visible revenue for future years, gives management confidence in its ongoing ability to deliver increasing stakeholder value this year and in the future."
For further information, please contact:
Craneware plc | Peel Hunt | Alma |
+44 (0)131 550 3100 | +44 (0)20 7418 8900 | +44 (0)208 004 4217 |
Keith Neilson, CEO | Dan Webster | Caroline Forde |
Craig Preston, CFO | Adrian Trimmings George Sellar | Hilary Buchanan Robyn Fisher |
Josh Royston | ||
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
About Craneware
Craneware enables healthcare providers to improve margins and enhance patient outcomes so they can continue to provide quality outcomes for all.
Craneware is the leader in automated value cycle solutions that help US Healthcare provider organisations discover, convert and optimise assets to achieve best clinical outcomes and financial performance. Founded in 1999, Craneware is headquartered in Edinburgh, Scotland with offices in Atlanta, Boston and Pittsburgh employing over 250 staff. Craneware's market-driven, SaaS solutions normalise disparate data sets, bringing in up-to-date regulatory and financial compliance data to deliver value at the points where clinical and operational data transform into financial transactions, creating actionable insights that enable informed tactical and strategic decisions. To learn more, visit craneware.com and thevaluecycle.com.