Last checked at 17 Jan 2017 07:00
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update
17 January 2017 - 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 2016.
The Group is pleased to announce continued growth and expects to report 15% increases in both revenue and adjusted EBITDA for the six month period ended 31 December 2016, building on the return to double digit growth reported in the year to 30 June 2016 and slightly ahead of expectations.
Underlying sales continue to support this growth, with a particularly strong Q2, post the US Election result, and a healthy sales pipeline. In accordance with the Company's revenue recognition policy the vast majority of revenue resulting from sales made in the period will be recognised over future periods, adding to the Group's long term visibility of revenue under contract.
The Group continues to invest for the future. In the period it has invested c$3m in its newly formed Employee Benefit trust and over $1.0m in future product development, including its cloud-based Trisus product suite and the new Craneware Healthcare Intelligence product suite.
The Group's cash balance at the end of the period was maintained at $45m (H116: $45m) after making these investments whilst continuing a progressive dividend payment policy. In addition, the Group retains an available funding facility from the Bank of Scotland of up to $50m as it continues to investigate strategic opportunities to further expand its Value Cycle solution.
With the growth in the period, continued cash generation and a healthy sales pipeline, the Board is confident in meeting market expectations for the full year.
The Company will announce its results for the six months ended 31 December 2016 on 7 March 2017.
Keith Neilson, CEO of Craneware plc commented, "There is continued consensus in the US of the need to drive value in Healthcare with ongoing support for the move to value-based care and increasing consumerism. An impending change of government always brings with it an element of uncertainty, it was therefore particularly pleasing to see the acceleration in sales of our Value Cycle solutions post the result of the US Presidential election. Our Value Cycle software continues to help US Healthcare providers meet the challenges they will face as they navigate the ongoing re-imbursement model changes.
"We continue to invest in both our current solutions and in the new products we are developing to expand our support to US Healthcare providers as they pursue quality patient outcomes and optimal financial performance.
"These supportive market drivers, our investment for the future and our continued profitable growth, give management confidence in its ability to deliver continued stakeholder value."
For further information, please contact:
Craneware plc | Peel Hunt | Alma |
+44 (0)131 550 3100 | +44 (0)20 7418 8900 | +44 (0)208 004 4218 |
Keith Neilson, CEO | Dan Webster | Caroline Forde |
Craig Preston, CFO | Adrian Trimmings George Sellar | Hilary Buchanan Robyn McConnachie |
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 Phoenix employing over 200 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.