FY23 Trading Update and Notice of Results

Craneware plc

("Craneware", the "Craneware Group", the "Company" or the "Group")

FY23 Trading Update and Notice of Results

17 July 2023 - Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, today provides an update on trading for the year ended 30 June 2023 (FY23).

The Board is pleased to announce a positive close to the year, as customers and partners began to look forward, beyond the macro difficulties of the recent past. As a result, revenue for the year is expected to be towards the upper end of current market expectations at approximately $174m, a 5% increase over the prior year. This has delivered an adjusted EBITDA increase of approximately 5% to over $54m which represents an EBITDA margin of 31% (FY22: 31%).

A healthy software revenue performance and continued high levels of customer retention have seen Annual Recurring Revenue¹ ("ARR") growth in the second half of the year, to approximately $169m (31 December 2022: $166.4m).

As at 30 June 2023, the Group maintained strong operating cash balances of $46.9m (30 June 2022: $47.2m) and total bank debt of $83m (30 June 2022: $111.6m). This further reduction in the overall levels of bank debt is in response to the current interest rate environment and results in a Net Debt/EBITDA ratio of 0.67x (FY22: 1.24x).   

The Company is pleased to announce that it is extending the duration of its share buyback programme for a further three months, under the same terms as previously announced.

Outlook

With the sales experienced in the final quarter of the year delivering incremental revenues, combined with further sales momentum, the Group has seen a positive start to trading in the new financial year.

The breadth of solutions the Craneware Group can provide, as well as the power of its operational and administrative platform and data, give the Board confidence in the Group's ability to provide the insights its customers need to deliver greater value healthcare to their communities.

The Group's balance sheet strength, high levels of ARR and early signs of increasing customer confidence, leave the Group well positioned for FY24 and beyond.

Notice of Results

Craneware will announce its results for the year ended 30 June 2023 on 5 September 2023.

Keith Neilson, CEO of Craneware plc, commented,

"Against the backdrop of the challenges impacting the US healthcare market over recent years, it is pleasing to report a robust financial performance, which is testament to the value of Craneware's offering and the hard work of our team.

It is particularly encouraging to see the improving prospects across the US healthcare landscape in recent months. We are seeing an increasing number of opportunities enter our sales pipeline, which has been reflected in a positive start to the current financial year.

We are confident in the demonstrable value our solutions can bring to the US healthcare market. Supported by a strong balance sheet, high levels of revenue visibility and improving market backdrop, we are well positioned to steadily build on the healthy performance delivered this year."

¹ Annual Recurring Revenue ("ARR") includes the annual value of licence and transaction revenues as at 30 June 2023 that are subject to underlying contracts and where revenue is being recognised.

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About Craneware

We at the Craneware Group of companies, passionately believe we can impact healthcare profoundly by delivering the insights healthcare organizations need to also transform the business of healthcare. Our shared vision is to be the operational and financial partner for U.S. healthcare providers.

Our combined suite of applications and industry-leading team of experts help our customers contextualize operational, financial, and clinical data, providing insights that clearly demonstrate what great looks like. These value cycle insights deliver revenue integrity and 340B compliance, as well as margin and operational intelligence - something no other single partner can provide.

Together, approximately 40% of registered U.S. hospitals are now our customers, including more than 2,000 U.S hospitals and health systems and almost 10,000 clinics and affiliated retail pharmacies. Our customers are operating with a financial impact of nearly half a trillion dollars. We have data sets from customers covering more than 150 million unique patients encounters.

Learn more at www.craneware.com