Craneware plc Trading Update and Significant Contract Win (0806U)
July 10 2018 - 2:00AM
UK Regulatory
TIDMCRW
RNS Number : 0806U
Craneware plc
10 July 2018
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update and Significant Contract Win
10 July 2018 - Craneware (AIM: CRW.L), the market leader in
Value Cycle solutions for the US healthcare market, provides an
update on trading for the year ended 30 June 2018.
The Group is pleased to announce continued outstanding
performance, as it executes on its growth strategy. There has been
strong underlying new sales growth that increased by approximately
100%. This includes a further significant new contract signed at
the end of the year. This contract with a large healthcare provider
network ('the Network') in the Eastern US is for the Company's
Pharmacy ChargeLink(R) solution. Further details on the contract
are provided below.
Renewals by dollar value have continued at over 100% in the
period. In accordance with the Company's revenue recognition
policy, the majority of the revenue resulting from both new and
renewal sales successes will be recognised over future periods,
adding significantly to the acceleration of the Group's long term
visibility of revenue under contract.
In addition to this record sales performance, the Group expects
to report increases of approximately 16% in revenue and 20% in
adjusted EBITDA for the year ended 30 June 2018, extending the run
of organic double digit growth delivered in prior years.
Having returned $15m to shareholders and invested a further $4m
in the Employee Benefit Trust during the year, the Group's cash
conversion has resulted in the cash balances returning to similar
levels to those seen at the end of FY17 (FY17: $53m).
Further Significant Contract Win
Craneware has signed a significant new contract, with a large
hospital network in the Eastern US, for its Pharmacy ChargeLink(R)
solution. From October 2018, Craneware's solution will be rolled
out to the 12 facilities across the Network. This contract is
expected to deliver in excess of $6m of revenue over its initial
five year term. As per the revenue recognition policy all of the
revenue from this contract will be recognised in future
periods.
Notice of Results
The Company will announce results for the year ended 30 June
2018 on 4 Sept 2018.
Keith Neilson, CEO of Craneware plc, commented, "These record
results demonstrate the ongoing momentum we are seeing across all
strata of hospitals including large and complex health systems as
they embrace the realities of value-based economics within
healthcare.
"The strength of our solutions and the value they deliver to our
customers, allows us to support our customers as they address the
challenges resulting from the continued evolution of the US
Healthcare market. We are playing an increasingly strategic role in
assisting healthcare providers to deliver better healthcare through
sustainable financial performance, whilst mitigating operational
and compliance risks.
"These factors combined with our financial strength and high
levels of visible revenue for future years, gives management
confidence in its continuing ability to deliver increasing
stakeholder value year on year whilst investing in our future."
For further information, please contact:
Craneware plc Peel Hunt Alma
+44 (0)131 550 +44 (0)20 7418 +44 (0)208 004
3100 8900 4217
Keith Neilson, Dan Webster Caroline Forde
CEO
Craig Preston, George Sellar Robyn Fisher
CFO
Josh Royston
About Craneware
Craneware enables healthcare providers to improve margins and
enhance patient outcomes so they can continue to provide quality
outcomes for all.
Craneware is the leader in automated Value Cycle solutions that
help US Healthcare provider organisations discover, convert and
optimise assets to achieve best clinical outcomes and financial
performance. Founded in 1999, Craneware is headquartered in
Edinburgh, Scotland with offices in Atlanta and Pittsburgh
employing over 300 staff. Craneware's market-driven, SaaS solutions
normalise disparate data sets, bringing in up-to-date regulatory
and financial compliance data to deliver value at the points where
clinical and operational data transform into financial
transactions, creating actionable insights that enable informed
tactical and strategic decisions. To learn more, visit
craneware.com and thevaluecycle.com.
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END
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