3 March 2020 - Craneware (AIM: CRW.L), the market leader in Value Cycle software solutions for the US healthcare market, announces its unaudited results for the six months ended 31 December 2019.
Financial Highlights (US dollars)
· Revenue of $35.9m (H1 2019: $35.9m)
· Adjusted EBITDA1 increased 10% to $12.7m (H1 2019: $11.6m)
· Profit before tax increased 3% to $9.6m (H1 2019: $9.3m)
· Adjusted basic EPS2 increased 3% to 31.1 cents per share (H1 2019: 30.2 cents per share)
· Cash position of $45.0m (H1 2019: $38.7m)
· Interim dividend increased 5% to 11.5p per share (H1 2019: 11p per share)
1. Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, share based payments and acquisition and share transaction related costs.
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
· Strong growth in New Sales, up over 30% compared to H1 2019, 90% of which was expansion sales to existing customers, including increasing product cross sell and sales to new hospitals joining existing healthcare network customers
· Our new cloud based Trisus solutions accounted for c. 10% of new sales (H1 2019: 6%)
· Increase in total value of renewals and high number of customer renewals, although renewal statistics dipped to 73% owing to the loss of one customer.
· Strong sales activity and opportunities across all classes of hospital providers
· Increased investment in R&D to $10.3m (H1 2019: $9.1m), to take advantage of the growing market opportunity. Capitalisation decreased to $4.0m (H1 2019: $4.4m)
· Strong sales pipeline for the current financial year
· As at end of February 2020, total visible revenues of $72.2m for the current financial year and $200.8m for the three-year period to June 2022 (H1 2019 same three year period: $190.0m)
· Board confident in outlook for the full year and beyond, expectations remain unchanged
Keith Neilson, CEO of Craneware plc commented,
"We are pleased to report on a positive sales performance in the first half of the financial year, with new sales over 30% ahead of the first half in the prior year, reflecting the considerable amount of activity that has taken place across the business since the summer. Whilst this increase will take time to flow through into our reported financials, we are confident that momentum is now back in the business and the size of the opportunity ahead of us remains intact.
"Importantly, the level of Trisus sales grew in the half, with sales of all four of our current Trisus solutions and the pipeline for these products increasing. The transition of our existing product suite onto the Trisus platform is progressing and paves the way for long-term growth, as we provide our customers with the data-driven solutions they require to address the move to value-based care.
"The positive sales performance in the first half has continued to date, and our pipeline continues to grow, underpinned by the ongoing transition of the US healthcare market to value-based care. The Board's expectations for the full year remain unchanged and we look forward to a return to increased rates of growth in future years. We are focused on execution and with strong operating margins, healthy cash balances and a growing sales pipeline, we continue to be excited by the opportunity ahead."