Trading Update, Launch of New Product and Notice of Results
11 July 2017 – 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 2017.
The Board is pleased to confirm that the Group has continued its strong performance throughout FY17. Double digit growth has continued in the second half of the year and, as a result, the Group expects to report full year revenue growth of 16% to $57.8m (FY16: $49.8m) delivering EBITDA of $18.0m (FY16: $15.9m).
Underlying sales in the year continue to support further future growth. In accordance with the Company’s revenue recognition policy the majority of the revenue resulting from sales will be realised over future periods, continuing to add to the Group’s long term visibility of revenue under contract.
In addition, the Company launched its first product on its new cloud based platform Trisus, and the Board is delighted to report early sales of Trisus Claims Informatics. Launched in June 2017, this product enables hospitals and healthcare systems to drive revenue growth and increase compliance by automating claims review; through analysing for completeness, accuracy, and patterns of charging behavior.
Other key performance indicators continue to be positive. Despite fewer renewals falling due in the year, the Group has successfully renewed the number of hospitals that were due for renewal at greater than 100% (by $ value), maintaining ongoing customer retention significantly higher than the industry norm.
Continued strong cash generation in the year has resulted in cash reserves in excess of $50m at 30 June 2017 (FY16: $47m). The Group continues to utilise its cash reserves to invest in the future, this includes further development of the Trisus Product Suite and Craneware Healthcare Intelligence, the Group’s unique Cost Analytics solution. The Group retains the funding facility from the Bank of Scotland of up to $50m as it continues to investigate strategic opportunities to further expand its Value Cycle solution.
Keith Neilson, CEO of Craneware plc commented, “We are delighted to confirm ongoing double digit growth and the first product sales on our new cloud-based platform, Trisus. The need to drive value in healthcare, and the challenges this brings, remains a universal topic of focus. We believe the innovation in Trisus positions us firmly at the forefront of an expanding market opportunity as the long term shift in US healthcare to value-based care and increased consumerism continues unabated.
The ongoing investment in the Trisus platform and our Cost Analytics solutions continue to help customers improve margins so they can invest in quality patient outcomes. This growing market opportunity, combined with our ongoing profitable growth and strong cash position, provide management with confidence in its ability to deliver stakeholder value, at the same time as investing in our future.”
The Company will announce its Full Year Results on 5th September 2017.
For further information, please contact:
- +44 (0)20 7418 8900
- Dan Webster
- Adrian Trimmings
- +44 (0)208 004 4218
- Caroline Forde
- Hilary Buchanan
- Robyn McConnachie
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 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, Pittsburgh, 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 and thevaluecycle.com.