Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, provides an update on trading to date for the year ending 30 June 2019.
The Group has continued to make progress on its long-term strategic aim to become ubiquitous in US Hospitals, as the intelligence layer sitting across all other systems, delivering the information required to improve financial and operational performance. This has included the launch of three new products on the Trisus platform. However, whilst the Group continues to sign new contracts with hospitals of all strata, the timing and quantity of sales closed in the second half of the year have been lower than anticipated, as the market processed these launches.
As a result, revenue growth for the 12 month period over the prior year is expected to be approximately 6% and adjusted EBITDA growth approximately 10%. As flagged at the time of the Group’s interim results, capitalised R&D has increased. In the year this will be approximately $9m (FY18: $4.7m), reflecting the Group’s ongoing commitment to new product development (both recently released products and further development for the future). The EBITDA figure has also been adjusted for one-off exceptional costs of approximately $1.5m relating to professional fees for a significant and well-advanced acquisition opportunity that the Group decided not to pursue in the period. Renewal levels remain within our historic range and the Group maintains healthy cash reserves.
Notice of Results
Craneware will announce results for the financial year ended 30 June 2019 on 3 September 2019.
Keith Neilson, CEO of Craneware plc, commented,
“As we close our financial year, we continue to look to the future with high levels of confidence despite our short-term sales performance in the latter part of the year. We have a significant and growing pipeline, which we are focused on converting. As a board we are convinced that our strategy with the Trisus platform differentiates us from other healthcare solutions vendors, providing substantial benefits for our customers and will meaningfully impact the value of healthcare as a whole. This, as we have demonstrated, will result in substantial improvements to the financial effectiveness of US Hospital Provider Customers and therefore significant financial wins for Craneware in the future.
“This strategy, our financial strength and high levels of revenue visibility for future years combine to give the board confidence in Craneware’s future.”