Craneware plc Trading Update
Craneware plc, the market leader in automated revenue integrity solutions for the US healthcare market provides an update on trading for the year ended 30 June 2012.
Trading Update
The Group continues to make positive progress with a number of large opportunities identified at the time of the interim results, however no further large deals have closed in the financial year. Consequently the Board expects to report revenue for the year in the region of $41m (FY11: $38.1m) and adjusted EBITDA* approximately 15% higher than the previous year (FY11: $10.1m).This is below current consensus of market expectations for the year.
As announced at the time of the interim results, the Group’s performance has been impacted by an unexpectedly high percentage of healthcare providers focusing on Electronic Health Records. As a result, sales cycles extended for all the Group’s products in the first half of the year. However, increased month on month activity and sales levels in the second half of this year support the Board’s expectation that sales cycles are returning to normal lengths.
Medicare Recovery Auditors continue to add pressure on all US hospitals as overpayments being recovered from hospitals increase quarter on quarter. As a result, the Board believes hospitals will continue to refocus on Revenue Integrity Solutions to rectify the underlying causes of the Medicare Recovery Auditors’ findings as well as to provide a strong underlying return on invested capital.
Keith Neilson, CEO of Craneware plc commented “This has been a mixed trading year for the Group; however we are in a stronger position than we have ever been. Our sales and opportunity pipeline continues to build, supported by a market that is refocusing on the problems our products can help solve. This combined with the acknowledged quality of our product suite and our balance sheet strength, means we are well placed to help our customers deal with their increasing fiscal and regulatory pressures and as a result we continue to be confident in the future growth of the Group.”
Craneware will be announcing its preliminary results for the year ended 30 June 2012 on Tuesday 4 September 2012.