3 September 2019 - Craneware (AIM: CRW.L), the market leader in Value Cycle software solutions for the US healthcare market, announces its audited results for the year ended 30 June 2019.
Financial Highlights (US dollars)
· Revenue increased 6% to $71.4m (FY18: $67.1m)
· Adjusted EBITDA1. increased 11% to $24.0m (FY18: $21.6m)
· Profit before tax of $18.3m (FY18: $18.9m) the reduction being as a result of $1.2m one-off costs related to a significant proposed acquisition that the Board decided not to enter into during the year
· Basic adjusted EPS2. increased 5% to $0.633 (FY18: $0.602) and adjusted diluted EPS increased to $0.620 (FY18: $0.591)
· Renewal rate remains above 100% by dollar value
· Three Year Total Visible Revenue of $200.1m (FY18 same 3 year period: $191.0m)
· Operating cash conversion at 63% of Adjusted EBITDA - further $8.5m collected post year end - equating to 98% conversion
· Cash at year-end of $47.6m (FY18: $52.8m) after having returned $8.5m to shareholders via dividends
· Proposed final dividend of 15.0p (19.05 cents) (FY18: 14.0p, 18.48 cents) per share giving a total dividend for the year of 26.0p (33.02 cents) (FY18: 24.0p, 31.68 cents) per share
1. Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, exceptional costs and share based payments.
2. Adjusted Earnings per share (EPS) calculations allow for the tax adjusted acquisition costs and share related transactions together with amortisation on acquired intangible assets.
· Ongoing transition of the US healthcare market to value-based care, supporting Craneware's software product suite
· Sales in the year amounted to $63.1m (FY18: $98.6m, FY17: $54.0m)
· Sales of Trisus Enterprise Value Platform products represented 13% of new sales in the year (FY18: 4%)
· Healthy sales mix, with 45% of sales relating to new customers
· Continued investment in R&D and innovation to capitalise on growing market opportunity
· Supportive market environment, with existing customers and wider healthcare market responding positively to the enhanced solution set delivered on the Trisus platform
· We continue to sign contracts with hospitals of all sizes and have had a strong start to the year
· Confident outlook, supported by strong sales pipeline
Keith Neilson, CEO of Craneware plc commented,
"The ongoing transition to value-based care is a powerful underlying driver for our software, as healthcare providers seek the means not only to survive but thrive in this new era. We are committed to providing our customers with the tools they require to continue to deliver outstanding care to their communities and are passionate about the central role we will play in this substantial evolution of the US healthcare market.
"While growth in the year was lower than originally anticipated, renewal levels remained strong and our Trisus related sales and revenues continued to increase, providing us with a strong platform for the future. We have entered the new financial year with an uptick in sales momentum.
"We are focused on the delivery of our growing opportunity and have the correct strategy to succeed. With growing levels of contracted future revenue, strong operating margins, healthy cash balances and a growing sales pipeline, we look to the coming years with confidence and high levels of excitement for the opportunity ahead."