Last checked at 15 Jul 2014 07:00
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update and Notice of Results
15 July 2014 - Craneware (AIM: CRW.L), the market leader in automated revenue integrity solutions for the US healthcare market, provides an update on trading for the year ended 30 June 2014.
The Board is pleased to confirm the increased sales activity reported earlier in the year has delivered a record sales performance for the Group with the total value of contracts signed in the year increasing to over $70m (FY13: $38.5m), an increase in excess of 80% on the prior year.
In accordance with the Group's revenue recognition policy, which is focussed on long term sustainable growth and mitigates against year on year fluctuations in the total value of contracts signed, the vast majority of the revenue from these sales has not been recognised in the year to 30 June 2014, and will instead benefit future years. Accordingly the Group expects to report revenues in a range of $42.2m to $43m (FY13: $41.5m) and deliver an adjusted EBITDA in a range of $12.8m to $13.2m (FY13: $12.4m).
The market for revenue integrity solutions continues to develop with larger and more complex hospital systems becoming an increasing part of both current year sales and the pipeline of sales opportunities. We continue to invest in our sales organisation to ensure we are optimally positioned to take advantage of this growing market opportunity. Management believes as the fiscal and regulatory pressures on US hospitals continue to grow, the strength and relevance of our unique suite of solutions will increase in this market environment, giving us confidence in continued future growth.
Keith Neilson, CEO of Craneware plc commented, "We are delighted to announce a record sales year for the Group, with a year on year increase of over 80% in the total value of contracts signed in the year, demonstrating the ongoing strength of our market position. The current sales success gives Craneware certainty over contracted revenue and associated profits upon which to build future growth."
The Company will announce its Full Year Results on 16th September 2014.
For further information, please contact:
Craneware plc | Peel Hunt | Newgate Threadneedle |
+44 (0)131 550 3100 | +44 (0)20 7418 8900 | +44 (0)20 7653 9850 |
Keith Neilson, CEO | Dan Webster | Caroline Forde |
Craig Preston, CFO | Richard Kauffer | Fiona Conroy |
Heather Armstrong |
About Craneware
Founded in 1999, Craneware has headquarters in Edinburgh, Scotland with offices in Atlanta, Arizona, Massachusetts and Tennessee employing over 200 staff. Craneware is the leader in automated revenue integrity solutions that improve financial performance for healthcare organisations. Craneware's market-driven, SaaS solutions help hospitals and other healthcare providers more effectively price, charge, code and retain earned revenue for patient care services and supplies. This optimises reimbursement, increases operational efficiency and minimises compliance risk. By partnering with Craneware, clients achieve the visibility required to identify, address and prevent revenue leakage. To learn more, visit craneware.com.