22 January 2016 – Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, provides an update on trading for the six months ended 31 December 2015.
The Group is pleased to announce it has continued to perform strongly in the first half of the financial year. Ongoing sales success has delivered an increase of 15% in the value of ‘new sales’ contracts signed in the six month period ended 31 December 2015 compared to the same period last year and renewals by dollar value in the period have continued at over 100%. In accordance with the Company’s revenue recognition policy the majority of revenue resulting from these sales will be recognised over future periods, adding to the Group’s long term visibility of revenue under contract.
As a result, the Group expects to report an increase of over 10% in adjusted EBITDA for the six months ended 31 December 2015 and a 7% increase in recognised revenue, compared with the same period last year.
High levels of cash generation in the period have resulted in cash reserves of $45m (H115:$41.8m). In addition, the Group has secured a funding facility from the Bank of Scotland of up to $50m. This will be available to the Group as it continues to investigate strategic opportunities to further expand its Value Cycle solution.
With growth in the period in line with management’s expectations, high levels of cash generation and the continued sales momentum, the Board is confident in meeting market expectations for the full year.
The Company will announce results for the six months ended 31 December 2015 on 8 March 2016.
Keith Neilson, CEO of Craneware plc commented, “We are seeing the initial success of the ‘Value Cycle’, our vision for the process and culture by which US healthcare providers pursue quality patient outcomes and optimal financial performance, in our continued strong sales performance.
The Group’s strong financial position allows us to evaluate our options as we look to enhance and add solutions which support our customers in the new Value-based reimbursement environment.
These factors combined with revenue recognition from contracted sales made in prior periods, gives management confidence in its ability to deliver increasing stakeholder value through this year and in the future.”
For further information, please contact:
- +44 (0)20 7418 8900
- Dan Webster
- Richard Kauffer
- +44 (0)208 004 4218
- Caroline Forde
- Hilary Forde
Craneware is the leader in automated value cycle solutions that help US provider organisations discover, convert and optimise assets to achieve best clinical outcomes and financial performance. Founded in 1999, Craneware has headquarters in Edinburgh, Scotland with offices in Atlanta, Boston and Phoenix employing over 200 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.