FY26 Final Results

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

Craneware plc

(“Craneware”, the “Group”, or the “Company”)

 

FY26 Final Results

Resilient FY26 performance despite 340B headwinds, delivering profit growth, high recurring revenue and strong cash generation

 

21 September 2026 – Craneware (AIM: CRW.L), a leader in healthcare financial performance solutions, announces its audited results for the year ended 30 June 2026 (“FY26”).

 

Financial Highlights

	Revenue stable at $206.0m (FY25: $205.7m)
	ARR2 steady at $185m (FY25: $184m), with a NRR3 of 100% (FY25: 107%), providing a solid foundation for the business
	Adjusted EBITDA1 increased 3% to $67.1m (FY25: $65.3m), representing an increased margin of 33% (FY25: 32%)
	Statutory Profit before tax increased 7% to $25.8m (FY25: $24.0m)
	Adjusted basic EPS1 of 116.8 cents (FY25: 116.1 cents) and adjusted diluted EPS of 115.6 cents (FY25: 114.2 cents)
	Basic EPS of 56.6 cents (FY25: 56.2 cents) and diluted EPS of 56.0 cents (FY25: 55.2 cents)
	Strong Operating Cash Conversion4 at 98% of Adjusted EBITDA (FY25: 94%)
	Total Cash and cash equivalents steady at $54.8m (FY25: $55.9m)
	Total Bank Debt of $43.5m (FY25: $27.7m) following a drawdown to partially fund the $25m share buyback completed in the year
	Proposed total dividend consistent with the prior year of 32 pence per share, resulting in a final dividend of 17p per share (FY25: 18.5p)

 

1 Certain financial measures are not determined under IFRS and are alternative performance measures as described in Note 15

2 Annual Recurring Revenue "ARR" includes the annual value of subscription license and related recurring revenues as at 30 June 2026 that are subject to underlying contracts and where revenue is being recognised at the reporting date

3 Net Revenue Retention “NRR” is the percentage of revenue retained from existing customers over the measurement period, taking into account both churn and expansion sales

4 Operating Cash Conversion is cash generated from operations (as per Note 15), adjusted to exclude cash payments for exceptional costs and movements in cash held on behalf of customers, divided by adjusted EBITDA

5 When we refer to 'Craneware', or 'The Craneware Group' or 'Group' in this announcement we mean the group of companies having Craneware plc as its parent and therefore these words are used interchangeably

 

Operational Highlights

	A robust sales performance, with annual value of sales at similar levels to the prior year.
	Strong customer retention of over 90%, testament to the value Craneware delivers and its position as a trusted strategic partner.
	Trisus® Assist, the AI-powered intelligence layer embedded across the Trisus platform, now integrated across multiple product areas helping customers interpret complex information, reduce uncertainty, and make more confident decisions using trusted, authoritative data.
	All datasets now fully integrated within the Trisus platform, providing the foundation for new offerings.
	Launch of Trisus® OneLink - Medication, to support emerging 340B and pharmacy reimbursement models, positioning the Group at the forefront of the evolving 340B market.
	Microsoft alliance progressing well, with further customer contracts secured via the Marketplace and increased joint marketing efforts.

 

Post Period End Cyber Security Incident

	On 20 July 2026, post year end, the Company announced it had identified and responded to a cyber security incident. There was no disruption to customer services or the Group’s core operations.
	An independent investigation has verified that all Group systems are secure, free of any indicators of ongoing compromise and fully operational.
	The process has now entered the remediation phase, with investigation into the data involved and associated customer and regulatory reporting requirement ongoing.

 

Outlook

	As noted above, the immediate impact of the Cyber security incident has been contained; however, the full financial outcomes are yet to be quantified, including the impact of future customer engagement.
	While the Board remains confident in the long-term outlook for the Group and the growth opportunities, it is taking a prudent view of its revenue expectations in FY27, resetting them to the equivalent of the Company’s Annual Recurring Revenue of c.$185m.
	A comprehensive review of the cost base has been initiated to provide a solid foundation for future growth with an expectation that the Group’s overall EBITDA margin will be maintained in the medium term.
	340B tailwinds are expected to build in H2 FY27 as clarity regarding the shape of the program emerges, resulting in increased demand for the Group’s newly expanded range of 340B software offerings and tech-enabled services as we move through the year. These tailwinds are not included in the Company’s revenue expectations.
	High levels of recurring revenues, longevity of customer relationships and the launch of new products provide a robust foundation for a return to growth in FY28.

 

Keith Neilson, CEO of Craneware plc, commented,

 

“Delivering growth consistently over an 18-year period as a public company is rarely straightforward. FY26 was challenging and growth was below our expectations. We responded quickly to the evolving 340B environment and the increasingly onerous drugs manufacturers’ requirements by launching the first of a family of software solutions designed to help customers manage these new 340B requirements. Recent market developments indicate that 340B conditions should become progressively more supportive for these new offerings through FY27, particularly in the second half, although the timing remains dependent on regulatory clarity and customer adoption.

 

The cyber incident has led us to reset our near-term financial expectations to provide certainty to stakeholders, but it does not change our confidence in the Group’s long-term opportunity. In FY27, our priorities are to renew long-term customer contracts, expand recurring revenue through sales to new and existing customers, ensure our cost base is suitably sized and maintain strong cash generation, providing a platform for growth in FY28 and beyond. 

 

Looking ahead, our financial resilience, deep integration into core customer workflows and proprietary data provide a strong long-term foundation for sustained value generation, as we support our customers in transforming the business of healthcare.”

 

For further information, please contact:

 

Craneware plc	+44 (0)131 550 3100
Keith Neilson, CEO
Craig Preston, CFO
Alma Strategic Communications	+44 (0)20 3405 0205
Caroline Forde, Louisa El-Ahwal	[email protected]
Peel Hunt (NOMAD and Joint Broker)	+44 (0)20 7418 8900
Neil Patel, Benjamin Cryer, Kate Bannatyne
Investec Bank PLC (Joint Broker)	+44 (0)20 7597 5970
Patrick Robb, Virginia Bull, Arnav Kapoor
Berenberg (Joint Broker)	+44 (0)20 3207 7800
Mark Whitmore, Tom Ballard, Patrick Dolaghan, Ryan Mahnke

 

About Craneware

 

For over 25 years, The Craneware Group (AIM:CRW.L) has been a leader in healthcare financial and operational transformation, delivering cutting-edge technologies that drive measurable impact. Our Trisus® cloud ecosystem unifies data, revenue intelligence, margin intelligence, and advanced analytics, enabling healthcare organizations to optimize performance, improve financial sustainability, and drive strategic growth. As a trusted Microsoft partner, we provide future-ready solutions-including the Best in KLAS Trisus Chargemaster - that simplify the complexities of healthcare finance and operations. What sets us apart is our unique combination of deep healthcare expertise and engineering excellence, positioning us as a strategic partner rather than just a technology provider. The Craneware Group empowers healthcare organizations to achieve sustainable financial success while delivering better outcomes for the communities they serve - today and in the future. Together, we are transforming the business of healthcare.

 

Learn more at www.thecranewaregroup.com

 

 

Chair Statement

 

From a financial performance perspective, FY26 did not close in the manner that we had anticipated. Overall FY26 revenue was below our expectations, principally because customers were unable to realise the opportunities identified by our 340B Shelter offering, meaning related transaction revenue did not grow. In addition, signed licence revenue from our 340B rebate solution continues to be deferred pending regulatory clarification. Together, these factors constrained 340B revenue growth in the year.

 

As a result, the Group delivered revenue for the year of $206.0m (FY25: $205.7m), and adjusted EBITDA of $67.1m (FY25: $65.3m), below the Board’s initial expectations. Operating cash conversion, which has always been a strength of the Group’s annuity Software as a Service (“SaaS”) model, continued to be strong, providing funding to continue to invest in the product portfolio and manage debt and interest costs. Total bank debt increased to $43.5m (FY25: $27.7m) following a drawdown on our RCF to fund the $25m share buyback completed in the year.  We continue to retain healthy total cash reserves of $54.8m (FY25: $55.9m) providing financial stability. The Board has proposed a total dividend consistent with the prior year of 32 pence per share, equating to a final dividend of 17p per share (FY25: 18.5p).

 

Whilst the growth in the Group’s ARR did not materialise due to the factors outlined, overall ARR remained steady at $185m (FY25: $184m), with an associated Net Revenue Retention of 100% (FY25: 107%). While this lack of growth is of course a disappointment, it nonetheless represents a significant amount of contractually retained recurring revenue, providing a solid basis from which to build.

 

An evolving 340B market

 

The Board expects FY27 to be a transition period within the 340B market, while the regulatory framework and operating processes become clearer. The 340B drug pricing program allows eligible US hospitals and clinics to purchase outpatient medicines at discounted prices, supporting care for underserved communities therefore stretching scarce federal resources. The funding the 340B program provides will continue to be a vital part of the fabric of the US healthcare market. The program continues to evolve as manufacturers seek to unilaterally control the 340B program, introducing more stringent data submission requirements, and the legislature attempts to clarify regulations, proposing trialing the use of rebate-based processes rather than discounts applied at the point of purchase. Under these more stringent data requirements and rebate model, eligible US hospitals and clinics would pay a higher initial price and then submit validated transaction data to receive the 340B benefit. This would increase working capital, data, reconciliation and compliance requirements for providers.

 

A rebate-based process and the proposed changes to data gathering creates more operational steps and a greater need for accurate transaction level data submission, workflow automation, reconciliation and audit evidence. These needs align with Craneware’s existing 340B expertise, hospital integrations and data assets. Revenue pressure on certain of our established 340B products is expected to be supplemented, and over time replaced by our newly launched Trisus® OneLink – Medication product family, helping customers identify eligible transactions, validate and submit claims, reconcile rebates and maintain audit-ready records, thereby providing methods to reduce this increased pressure on the cashflow of our eligible hospitals.

 

Enquiries for these offerings have increased, but the timing and scale of revenue will depend on final rules, manufacturer participation, customer implementation and transaction volumes. If adopted at scale, the new products could support additional recurring subscription revenue and transaction-based revenue, while deeper integration into customers’ financial workflows would be expected, reinforcing retention.

 

The recently announced reinstatement of the 340B Rebate pilot, expected to commence on 1st January 2027, has brought some focus to the market.

 

Cyber Security incident update

 

Post year end, on 20 July 2026, we reported that we had identified and responded to a cyber security incident involving unauthorised access to a subset of the Group’s data environment and exfiltration of data. The Company activated its incident response plan, supported by external cyber security and forensic specialists. The unauthorised access was contained with no disruption to customer services or to the Company’s core operations. Subsequently the Group’s systems have been independently confirmed to be free of any ongoing indications of compromise and are fully operational.

 

We have now entered the remediation phase of the process with work ongoing to ensure the resolution of the wider legal and regulatory requirements that result. Detailed customer notifications are being prepared to allow the individual affected parties to be informed and the resulting notifications to regulatory bodies to be completed.  Full remediation is anticipated to be a lengthy process spanning several financial periods. While the ultimate financial outcomes and the timeline cannot yet be determined, the business remains well capitalised and with high levels of recurring revenue, providing a solid ongoing foundation.

 

A resilient business

 

Group revenue is supported by long-term software licences and other recurring revenues, with the performance of this part of the business remaining resilient, as demonstrated by our 100% NRR. Our high levels of customer retention continue as customers benefit from the ability provided by the Group’s Trisus platform to deliver demonstrable operational and financial performance improvements across areas such as supplies, contracting, claims and pricing.

 

Craneware’s Microsoft partnership continues to be a strength of the Group, providing us access to advanced AI models and accelerating the Group’s launch of impactful AI offerings to its clients. The Group’s AI agent, Trisus Assist, is now in use by over 400 of the Group’s customer base, having been embedded into several of the Group’s core modules. We have also seen the first net new customers sign via the Microsoft Azure marketplace.

 

Benefitting society through our Purpose

 

We remain committed to our Purpose - to transform the business of healthcare through the profound impact our solutions deliver, enabling our customers to focus their resources on their healthcare priorities and the provision of quality care to their communities. While the 340B market may be in transition, the overarching drive to increase efficiencies across the US healthcare system while supporting improved outcomes for patients remains a constant, and it is this need that drives our team to work hard, day in, day out.

 

A dedicated team

 

The commitment to social responsibility and delivering a positive contribution to society can be seen in the superb dedication of the team, particularly in the face of the challenges we have endured in recent months, and on behalf of the Board, I would like to express my gratitude to them all for the hard work and passion they bring every day to serving our customers and their communities. We were all incredibly saddened to lose one of our longest standing and much-loved colleagues in July, Derek Paterson. Derek joined the business as one of the first employees and oversaw the technology that has supported the Company’s growth over the last 26 years. His untimely passing has been a source of great sadness across the organisation and our customers, and he will be very much missed for years to come.

 

Resolute outlook

 

There is much debate around the impact of AI on the long-term future of software businesses. What is apparent to me is that, while some companies may struggle to take advantage of the pace of innovation that will result, Craneware is well placed to keep moving at the forefront of its industry. Since the Company first identified in 1999 that software would be key to scaling chargemaster auditing, Craneware has consistently anticipated market needs: creating and retaining the unique datasets that now power the Trisus platform; moving all offerings into the cloud; and establishing a powerful AI partnership with Microsoft that is supporting the application of AI across the Group’s operations and product set. This consistent innovation has enabled Craneware to stay ahead of its market and provide customers with the valuable insights they need.

 

Craneware’s long-term customer relationships, the depth of its proprietary datasets, and its proven ability to innovate provide an opportunity to sit at the heart of the transformation of the US healthcare market. While 340B headwinds have stalled growth in the short-term, this opportunity remains valid and the Board is confident in the Group’s ability to further strengthen its market position and deliver successful outcomes for all stakeholders.

 

Dr Will Whitehorn OBE

Chair, Craneware plc

20 September 2026

 

Strategic Report

 

Operational Review

 

The Group made good progress in the year against our strategic priorities. These included a robust level of total sales, healthy customer retention, greater integration of AI across our offerings to increase the ROI they deliver customers, strengthening of the Microsoft partnership and the maintenance of above 30% EBITDA margins with strong cash generation. Importantly, we continued to strengthen our customer relationships, providing us with a strong foundation as we navigate the changes in the current market.  

 

We were, of course, disappointed that the growth we had anticipated in the second half of the year did not materialise.  While our software identified a considerable amount of available 340B opportunity for our customers in H2, and activity levels with customers remained high, the uncertainty in the market meant that this did not translate into revenue, and we did not see the expected growth in our 340B related transaction revenue as a result.

 

We have adapted swiftly to the changing regulatory environment, bringing to market the first in a family of software-based offerings, Trisus® OneLink – Medication, to support our customers in the face of changing 340B requirements. The recently announced reinstatement of the 340B Rebate pilot, expected to commence on 1st January 2027, has brought some focus to the market, and we remain ready with solutions to support our customers in meeting these new requirements.

 

Supporting our customers in an evolving market

 

As described in the Chair Statement, the 340B market remains characterised by ongoing tension between pharmaceutical manufacturers seeking greater control, and hospitals determined to preserve the economics and administrative simplicity of the existing discount-based model. Recent regulatory developments, including the introduction of a limited rebate-based pilot programme by the Health Resources and Services Administration (HRSA), suggest that policymakers are seeking a pragmatic middle ground that balances programme integrity with continued support for safety-net providers. While legal challenges and stakeholder lobbying are likely to continue, the tone of the debate appears to be becoming more constructive, with participants increasingly focused on the practical implementation of new operating models rather than challenging the future of the program itself. Although further refinements and pilot expansions remain possible, we believe the prospect of wholesale legislative reform before the US elections in 2028 is comparatively limited, supporting a period of gradual evolution rather than abrupt change.

 

Against this backdrop, healthcare providers are increasingly prioritising solutions that can help manage growing operational complexity, maintain compliance and maximise the value derived from the program.  We see this as an increasingly supportive backdrop, with the potential to result in increased demand for our newly expanded range of 340B software offerings and tech-enabled services as we move through the year.

 

We remain confident in our strategic direction. The need to transform the business of healthcare is as pressing as ever, and yet the complexity in the provider and payor landscape makes this exceedingly difficult for our customers to achieve. Through the use of data and technology, we are solving real-world problems for customers, delivering tangible ROI. With healthcare spend in the US accounting for a substantial 18% of GDP, and approximately a third of that being administrative spend, the imperative to drive efficiencies remains ever-present, representing a meaningful and exciting long-term opportunity for our Group. Crucially, our high levels of recurring revenue and consistent focus on high margin software and transaction revenue, mean we possess the financial strength to continue our investment in innovation to meet these evolving needs, while maintaining EBITDA margins.

 

Growth Strategy - innovation to profoundly impact US healthcare operations, which will drive demand and expand our addressable market.

 

Our journey in recent years, from application vendor to platform provider, has accelerated our expansion and enhanced our Land & Expand capabilities. The Trisus platform simplifies growth with existing clients, speeds product development, and supports integration of third-party solutions, broadening our market reach and reducing the vendor burden for hospitals.

 

With each new hospital or hospital group that joins the platform, the strength of data and insights we provide grows, delivering immediate benefit to our customers through a whole range of financial measures, such as reduced claims denials, more uniform pricing, better forecasting of staffing needs – all of which culminate in improved operating margins.

 

With approximately 40% of all US hospitals as customers, and increasingly sophisticated, integrated offerings across Revenue Integrity and the Business of Pharmacy, our addressable opportunity within existing customers is substantial. Our “white space” product portfolio analysis alone suggests an addressable revenue opportunity of over $1.6bn across our existing customers. With our customers’ combined operating expenses totalling almost a trillion dollars, this would still represent only a small share of overall US hospital operating expenses, with significant further new customer opportunities. While our immediate priority given the cyber security incident is on customer assurance and renewals, we continue to see this as a substantial opportunity over the medium term.

 

Delight & Grow (D&G)

 

To achieve this growth, our aim is to delight our customers, through industry leading customer service and the compelling ROI of our solutions. Our Delight & Grow initiatives progressed from organisational alignment into operational execution during FY26.  D&G delivered unified customer-facing processes, a consolidated customer experience framework, enhanced governance, and scalable foundations for sustainable growth and retention improvement across The Craneware Group.  Highlights of the year include:

 

• Successfully established a unified customer-facing operating model designed to create a single, coordinated voice to the customer across Growth, Customer Success, Customer Partnership, Professional Services, and Support functions.
• Implemented and operationalised a consolidated customer feedback and survey framework, allowing for a more holistic enterprise view of customer sentiment and more effective closed-loop engagement.
• Developed new customer enablement and thought leadership programs, including customer communities of practice, with strong participation and engagement that further strengthened customer relationships and value realisation.
• Enhanced visibility into operational capacity, utilisation, and implementation performance through the deployment of productivity dashboards and improved management reporting.
• Leveraged insights from KLAS executive research and direct customer feedback to identify and address customer experience inconsistencies, positioning the organisation to improve retention, reduce customer effort, and accelerate growth.
• Created the organisational and process foundation required to support scalable growth by aligning customer-facing teams around common standards, governance, metrics, and customer outcomes.

 

We will measure the success of these initiatives through our KLAS rankings, NPS score, Net Revenue Retention figures and ultimately the level of expansion sales. With our Trisus Chargemaster being named ‘Best in KLAS’ once again this year for a record 15th time, and expansion sales accounting for 90% of new sales in the year, we are pleased with the progress being achieved.

 

Microsoft Alliance presents a growth catalyst

 

Our strategic alliance with Microsoft continues to provide a meaningful growth catalyst for Craneware, supporting product development, innovation, customer engagement and go-to-market execution across the US healthcare market.

 

During the year, Craneware became a Microsoft Frontier partner, reflecting the increasing strategic relevance of the relationship and the alignment between Microsoft’s healthcare ambitions and Craneware’s cloud-based solutions, data assets and established customer base. The partnership provides access to Microsoft’s Azure infrastructure and advanced AI capabilities, helping accelerate innovation across Trisus while supporting secure, scalable deployment for customers.

 

From a technology perspective, the relationship has advanced through deeper integration between Craneware systems and Microsoft platforms. This includes CRM integration designed to improve two-way reporting, enhance co-sell visibility and provide both organisations with a more consistent view of joint pipeline activity.

 

We continued to strengthen our operating rhythm with Microsoft across co-sell, Marketplace and co-marketing activity. Craneware is engaging with Microsoft account teams across the US healthcare network, supporting increased market visibility and creating a broader channel for customer introductions, demand generation and late-stage opportunity support.

 

Partnership governance has matured through regular joint forums, enabling both teams to coordinate activity, remove operational barriers and improve execution. This has supported more effective collaboration with Microsoft relationship and account teams, including direct interactions designed to ensure customers benefit from appropriate coverage across both organisations.

 

Subject to applicable confidentiality and publicity restrictions, Craneware is participating in Microsoft healthcare advisory activity, further strengthening strategic engagement across the sector. 

 

The commercial relationship has also progressed through Marketplace execution, including customer transactions structured through Microsoft’s commercial marketplace. This demonstrates the potential of the channel to support customer procurement and adoption while maintaining alignment with Microsoft’s broader cloud consumption model.

 

During the second half of the year, the jointly developed pipeline increased significantly as Microsoft sales priorities and Craneware’s growth objectives became more closely aligned. While enterprise sales cycles continue to be prolonged, this creates a stronger basis for well sourced and influenced opportunities over the medium term.

 

Looking ahead, our priorities are to continue converting the expanded Microsoft relationship into measurable customer engagement, qualified pipeline and improved opportunity conversion, supported by enhanced reporting, ongoing co-selling and co-marketing activity, and increasing two-way introductions between Craneware and Microsoft teams.

 

Data unification unlocks AI opportunity

 

We see AI as another growth catalyst for The Craneware Group. We are actively deploying AI within the core economic engines of healthcare finance — compliance, labour and reimbursement — supporting durable recurring revenue and long-term customer value.

 

With over 26 years of experience in the US healthcare market, complemented by the acquisition of Sentry Data Systems in 2021, we have established a robust, unified proprietary data set that underpins the Trisus platform, consisting of over 200 million unique patient encounters. Our strategic focus and commitment are on delivering sustained value to our customers through actionable insights drawn from this extensive dataset, rather than selling it to external parties. We are leveraging advancements in artificial intelligence and machine learning to expedite analysis and develop innovative models, enhancing efficiency and productivity throughout our organisation and those of our customers and facilitating the creation of new solutions.

 

Trisus Assist, our first AI product co-innovated with Microsoft, launched in March 2025 and is now in use by more than 400 customers, with usage having expanded considerably in H2 FY26 following its integration into other areas of the platform, increasing the reach and economic impact of AI across the platform.  Embedded within the Trisus platform, Trisus Assist enhances compliance workflows by delivering contextual, explainable guidance directly within existing user environments. Its impact has been further expanded through integration of Trisus reference data.

 

The adoption of Trisus Assist has increased platform engagement, supported renewals and new customer wins and strengthened the strategic role of Trisus within hospital finance teams.  

 

In the second half of FY26, we extended AI capabilities into two additional high-value financial workflows: Trisus Assist for Labour Productivity (TLP) and Reimbursement Intelligence, expanding the operating leverage of our clients while increasing Trisus platform retention and cross-solution adoption. 

 

TLP is now fully launched and generally available through the Azure Marketplace. Early customer experiences and feedback have been encouraging, with early adopters reporting positive initial outcomes and realising value from the application. One early adopter has already decided to renew for an additional two-year term, and a second is driving broader clinical adoption while actively exploring expansion of the application to additional facilities, demonstrating growing confidence in the platform’s impact and scalability.

 

We continue to invest in enhancements based on customer feedback and long-term value creation. Near-term priorities will focus on further improving the user experience through customer-driven user interface updates, performance improvements, and enhanced reporting. Work also continues on advancing predictive capabilities that will enable more proactive workforce planning and staffing optimisation. Together, these enhancements will strengthen user engagement, broaden operational impact, and further differentiate our offering.

 

With Reimbursement Intelligence, we will be using AI to transform complex payor contracts into rules that can be ingested into the Trisus® platform, enabling insights into pricing and reimbursement analytics and further increasing the attractiveness of the platform. Additional AI applications are due to become available in FY27.

 

A further major platform expansion that took place in H2 FY26 was the launch of Trisus OneLink – Medication, a solution within the Trisus Business of Pharmacy Suite that connects pharmacy, clinical and revenue cycle data to create a unified medication revenue and reimbursement layer across hospital systems, strengthening Craneware's position in pharmacy revenue integrity and 340B-related financial management. This includes our rebate focused solution, for which we have seen a significant increase in the level of enquiries in recent weeks, pointing to the potential for rapid adoption and revenue recognition once the implementation date for the manufacturer rebate program has arrived.

 

Ongoing platform enhancements increase our competitive strength

 

Our next-generation research environment now handles terabytes of synchronised, obfuscated data daily while complying with HITRUST, data privacy, and AI governance standards. These improvements help US hospitals turn large-scale healthcare data into actionable insights, enhancing financial performance and patient care.

 

Our enhanced 340B engine now processes real-time claim submissions in seconds, boosting pharmacy efficiency and enabling dynamic pricing, thereby increasing value, throughput, and supporting high-speed claim workflows, and we are now in the process of transitioning 340B offerings into Trisus, with some features already with early adopters, bringing new AI capabilities along with automation and customisable dashboards.

 

Meanwhile, Trisus platform updates include an intelligent file ingestion engine, simplifying workflows and supporting multi-facility mapping, which improves data integrity and accelerates implementation.

 

Robust sales performance – a trusted strategic partner

 

ARR performance

 

The robust sales performance and continued high levels of customer retention, offset by being unable to recognise the 340B rebate licence sales made in the year, have resulted in Annual Recurring Revenue (“ARR”) remaining steady at $185m (30 June 2025: $184m) and Net Revenue Retention of 100% (FY25: 107%) as the adoption of 340B offerings slowed in the second half.

 

We continue to see the opportunity to accelerate ARR growth over the medium term as we unlock the considerable cross and upsell opportunities within our enlarged customer base. Our customer retention rate was greater than 90% across the multiple measures we assess this by, which is testament to the value Craneware brings to its customer base.

 

With the significant opportunity that exists within US Healthcare and our trusted status as an independent partner to US hospitals, we expect the continuing investments we make into our Platform and solutions will drive significant future returns and further accelerate growth in ARR in the medium term.

 

Sales mix

While sales momentum slowed in the second half, the Annual Value of ‘new’ sales delivered in the year, outside of the 340B Shelter program, was at the same level as in the prior year, pointing to robust underlying demand and customer relationships. 

 

We are pleased to see sales to new customers increase as a proportion of total new sales, to 10% from 2% a year ago, following an increased level of competitive takeouts and new wins, reflecting the increased strength of our Revenue Integrity offerings. Bringing new customers into the Group provides for further expansion opportunities that support revenue growth in future years.

 

As expected, we continue to see the majority of sales coming from our existing customers, as they both expand their use of Trisus and add further hospitals to their networks, bringing “new hospitals” to Craneware that expand our market presence. Expansion sales to existing customers represented 90% of our total 'new' sales in the period (FY25: 98%).

Building on the good new business performance in the first half, significant wins in the second half of the year include:

	4-year Chargemaster and Revenue Integrity expansion contract with a large multi-hospital health system requiring a unified solution to manage additional facilities following a broad consolidation of legacy facilities into a single clinical environment.
	3-year 340B Program modernisation contract with new customer, an independent regional health system replacing an existing vendor.
	5-year Revenue Integrity contract, displacing a competitor, at a large academic health system, following the acquisition of a Craneware customer by the group.
	3-year Revenue Integrity and Pricing Optimization contract, with a new customer, a regional community health system, positioning Craneware as a strategic partner supporting pricing strategy, chargemaster governance and a payer audit management.
	5-year Revenue Cycle expansion contract with an existing regional community health system customer, following a recent revenue integrity win demonstrating the strength of the Group’s land and expand approach.
	2-year Medication margin improvement win with a new customer, a leading oncology health system, creating a meaningful land and expand opportunity.
	Revenue integrity and Pricing strategy professional services expansion with an existing large academic health system customer.

 

Growing opportunity with Trisus Platform programme

 

The Trisus Platform programme acts as an incubator for new revenue opportunities and business models, allowing us to utilise Craneware’s unique data sets, HITRUST-certified platform and extensive customer base to benefit our customers and deliver further revenue acceleration opportunities in future years.  

 

We continue to assess M&A opportunities to complement our organic product development initiatives, through the addition of relevant data sets, the extension of the customer base, the expansion of expertise, or the addition of applications suitable for the US hospital market; however, given the Group’s current valuation this is not an area of immediate focus.

 

Investing in our People

 

We are fortunate to have a talented and dedicated team whose diverse perspectives and shared purpose spark innovation and drive excellence. During FY26, we continued to invest in our people to nurture talent and their wellbeing, enhancing our leadership development programmes and Career Pathways resources, expanding our successful graduate and internship programmes, and supporting the responsible adoption of AI through employee engagement supported by our Employee Advisory Group (“EAG”). With the assistance of the EAG, we also launched our extensively refreshed wellbeing programme, providing employees with a broad range of resources and activities to support health, wellbeing and engagement.

 

Financial Review

FY26 was a year of operational progress, but the ultimate financial outcome was below the Board’s original expectations. While customer engagement and underlying demand remained robust, the timing and conversion of certain revenues anticipated in the second half fell short of expectations. This reflected increased complexity and operational pressures in parts of the US healthcare market, particularly within our 340B Shelter program. As a result, the revenue growth anticipated throughout the year did not materialise.

 

While disappointed with this outcome, the Board believes that the Group retains a significant long-term opportunity, supported by its market position, customer relationships and the measurable value delivered through its solutions. Customer retention remained above 90% and Net Revenue Retention was 100%.

 

Against this backdrop, Group revenue and Adjusted EBITDA were maintained at levels similar to the prior year, with Revenues of $206.0m (FY25: $205.7m), and Adjusted EBITDA of $67.1m (FY25: $65.3m). Disciplined cost management resulted in an Adjusted EBITDA margin of 33% (FY25: 32%) in line with our stated commitment of at least 30%. This was achieved while continuing to invest in product innovation, data integration, AI-enabled capabilities and the Group’s strategic relationship with Microsoft.

 

The Group retains a substantial recurring revenue base. Annual Recurring Revenue, or ARR, at 30 June 2026 was $185m (FY25: $184m), with Net Revenue Retention of 100% (FY25: 107%). While the absence of the ARR growth anticipated at the start of the year is disappointing, this substantial base of contracted recurring revenue, supported by long-standing customer relationships and high retention, provides a dependable foundation for the Group.

 

Operating Cash Conversion increased to 98% of Adjusted EBITDA (FY25: 94%), demonstrating the continued quality of the Group’s earnings and cash generation. Cash and cash equivalents at the year end were $54.8m (FY25: $55.9m). Following a $20m drawdown under the Group’s Revolving Credit Facility, or RCF, to part-fund the $25m share buyback completed during the year, total bank debt increased to $43.5m (FY25: $27.7m).

 

Profit before taxation increased to $25.8m (FY25: $24.0m). The benefit of increased Adjusted EBITDA and lower net finance expense was partly offset by the normalisation of the effective tax rate following the one-time tax benefit recognised in FY25, resulting in Adjusted basic earnings per share of 116.8 cents (FY25: 116.1 cents), and basic earnings per share of 56.6 cents (FY25: 56.2 cents).

 

On 20 July 2026, post year end, the Company announced it had identified and responded to a cyber security incident. While there has been no disruption to customer services or the Group’s core operations, the investigation and regulatory reporting requirement remains ongoing. Taking account of the FY26 outcome and the uncertainty arising from the incident, the Board has adopted a more prudent planning basis for the next three years, based on the Group’s existing ARR, with a more cautious assessment of the timing of new and expansion revenues. A comprehensive review of the Group’s cost base has been initiated to provide a solid foundation for future growth with an expectation that the Group’s overall EBITDA margin will be maintained in the medium term.

 

This approach is intended to provide appropriate near-term certainty while preserving the Group’s ability to invest selectively in innovation and customer value. Craneware’s contracted revenues, customer retention, cash generation, net cash position and available banking facilities provide financial resilience and a solid foundation from which the Group can navigate the near-term environment and return to sustainable growth.

 

Underlying Business Model and Revenue Mix

 

Our revenue model is underpinned by multi-year contracts with hospital customers. These contracts provide customers with access to a specified product or suite of products throughout their subscription licence period. At the end of an existing subscription licence period, or at an earlier mutually agreed date, we seek to renew and, where appropriate, expand these contracts.

 

Software subscription licence revenue and minimum payments due under other long-term contracts are recognised evenly over the life of the underlying contract term. This model provides significant visibility over future revenues and cash flows, supported by the long-standing customer relationships and strong retention levels.

 

This spread of revenues and breadth of the customer base, means that no one customer accounts for more than 8% of ARR, with the Group’s top 10 customers in aggregate accounting for less than 30% of ARR, and an average length of customer contracting relationship with The Craneware Group of 21 years, demonstrating the resilience of this revenue.

 

Certain specified products and associated services are delivered under contracted transactional models. These revenues are recurring and dependable, due to the longevity of customer relationships, although they may vary between periods according to customer activity and transaction volumes. Transactional licence and service revenue is recognised as the underlying service is delivered. These services include arrangements that enable 340B customers to engage with their networks of contract pharmacies, Referral Verification Services and other technology-enabled services.

 

We also provide professional and consulting services to customers. Where these services are delivered over an extended contractual period, including alongside multi-year software licences or as part of one of our Trisus Optimization Suites, revenue is recognised over the relevant contractual or project term where this reflects the delivery of the associated performance obligations. Shorter professional and consulting engagements are generally recognised as the service is delivered, and do not form part of our ARR calculation.

 

The Trisus Platform Partnership programme continues to use the Group’s data, technology and customer relationships to create additional commercial opportunities and business models. These activities are intended to deliver measurable benefits to customers while creating scalable revenue opportunities for the Group. Revenue is recognised when the relevant contractual performance obligations have been completed and the customer has received the related benefit. These revenues do not form part of ARR until the revenue from the new offerings has been proven to be recurring and reliably predictable.

 

Contracted recurring revenues were $175.1m (FY25: $176.2m), representing 85% of total revenue (FY25: 86%). This comprised SaaS software revenue of $130.4m (FY25: $134.6m), transaction revenue of $38.9m (FY25: $35.8m) and recurring professional services revenue of $5.8m (FY25: $5.8m).  The reduction in SaaS software revenue principally reflects the timing of a standard level of contract losses to the timing of new licence activations and the delay to the recognition of revenue associated with the newly developed 340B rebate product, following the postponement of the proposed rebate pilot. This was partly offset by growth in transaction revenue; however, the contribution from new Shelter activity was lower than anticipated. 

 

Shorter-duration professional and consulting service engagements contributed $8.3m in FY26 (FY25: $9.4m). The reduction reflects the timing, mix and completion profile of customer projects rather than any material change in the strategic role of professional services.

 

Non-recurring Platform revenues increased to $22.5m (FY25: $20.0m). These revenues include activities that may become recurring once a sufficiently predictable revenue pattern has been established. The Group applies careful and consistent criteria before including any such revenue within recurring revenue or ARR, helping to preserve the quality and transparency of these measures.

 

The 340B program remains an important part of the US healthcare system and of the Group’s offering. During FY26, increased operational pressures and anticipated regulatory changes reduced the conversion of 340B Shelter opportunities into recognised revenue. This was particularly evident during the later stage of the second half.

 

The Board continues to view 340B as a significant long-term opportunity. Craneware’s existing software, proprietary data, domain expertise and newly developed software and technology-enabled services position the Group to support customers as the market evolves.

 

Annual Recurring Revenue

 

ARR is defined as the annual value of subscription licence and related recurring revenues at the reporting date that are subject to underlying contracts and where revenue is being recognised.  ARR at 30 June 2026 was approximately $185m (FY25: $184m). Net Revenue Retention was 100% (FY25: 107%), while customer retention remained above 90% across the multiple measures used by the Group.   ARR growth was below the level anticipated at the beginning of the year as a result of the factors outlined above.

 

Net Revenue Retention at 100% confirms that expansion revenues from existing customers offset the overall impact of churn and contraction during the measurement period. With customer retention above 90%, the Group continues to benefit from long-term customer relationships and a substantial installed base.

 

The Board’s near-term priorities are to protect and renew the underlying contracted revenue base, increase adoption across the Trisus portfolio, improve the conversion of new and expansion opportunities, develop the Microsoft sales channel and establish recurring revenue patterns within appropriate Platform activities.

 

The existing ARR base represents a substantial amount of contracted revenue and provides forward visibility, supports cash generation and enables the Group to make considered investment decisions. The Board believes these priorities provide a credible basis for stabilising near-term performance and returning ARR to sustainable growth over time.

 

Gross Margins

 

Our gross profit margin is calculated after taking account of the incremental costs incurred to obtain and fulfil underlying customer contracts. These costs include sales commissions recognised in line with the associated revenue and the direct costs of employees and third parties delivering professional, transaction and technology-enabled services.

 

Gross profit was $172.9m (FY25: $179.3m), representing a gross margin of 84% (FY25: 87%). Cost of sales increased to $33.1m (FY25: $26.4m).

 

The movement reflects revenue mix and the direct delivery costs of certain transaction and technology-enabled services. The Board assesses these opportunities based on their total contribution, scalability, customer value and potential to support long-term recurring revenue, rather than gross margin in isolation.

 

The Group remains committed to a high-quality revenue mix. As new services develop, management will maintain discipline over pricing, cost-to-serve and the contractual allocation of risk.

 

Operating Expenses

 

Net operating expenses before the items reconciling operating profit to Adjusted EBITDA reduced to $105.7m (FY25: $114.0m). This reflects our continued approach to disciplined cost control, with the prioritisation of expenditure and investment only being released alongside revenue growth.

 

The Group continued to invest in customer service, product innovation, data integration, AI capabilities, cyber security and its strategic relationship with Microsoft. Investment decisions are assessed and prioritised based on expected customer impact, evidence of commercial demand, future economic benefit and the Group’s commitment to sustainable profitability.

 

Total development expenditure increased by 4% to $59.6m (FY25: $57.3m). Of this amount, $16.9m was capitalised (FY25: $14.9m), representing 28% of total development expenditure (FY25: 26%). The remaining $42.7m was expensed as incurred (FY25: $42.4m).

 

The increase in capitalised development expenditure reflects the stage of qualifying projects, including work on the alignment of our data sets, AI-enabled applications and the Group’s expanded pharmacy offering, Trisus® OneLink – Medication. The Group maintains strict criteria for capitalisation and capitalises only expenditure on qualifying projects that are technically feasible, commercially supportable and expected to deliver future economic benefit.

 

Following the post-year-end cyber security incident and the reset of medium-term revenue assumptions, the Board has initiated a comprehensive review of the cost base. The review is intended to ensure that expenditure remains aligned with the revised planning framework while protecting customer service, cyber security, regulatory compliance and the product investments most likely to generate sustainable future returns.

 

Net Impairment Charge on Financial and Contract Assets

 

The Group continues to have relatively low potential bad debt exposure, supported by the financial standing of its hospital customers, long-term commercial relationships and established cash collection processes.  The net impairment charge on financial and contract assets decreased to $1.8m (FY25: $2.3m).

 

The ageing and recoverability of receivables remain subject to active review, with provisions reflecting both individual customer circumstances and the expected credit loss methodology.

 

Adjusted EBITDA and Profit Before Taxation

 

The Group reports Alternative Performance Measures alongside IFRS measures to support assessment of underlying operating performance. Definitions and reconciliations are provided in Note 15. The Board believes that these measures assist shareholders, analysts and other stakeholders in assessing underlying operating performance and comparing the Group with similar companies.

 

Adjusted EBITDA increased to $67.1m (FY25: $65.3m), with margin increasing to 33% (FY25: 32%). Operating profit increased to $26.5m (FY25: $25.3m).

 

The principal reconciling items between Adjusted EBITDA and operating profit were:

• share-based payments of $6.1m (FY25: $5.7m);
• depreciation of $2.0m (FY25: $2.8m);
• amortisation of other intangible assets of $11.5m (FY25: $10.5m);
• amortisation of acquired intangible assets of $20.9m (FY25: $20.9m);
• exceptional costs of $0.1m (FY25: $0.1m).

Net finance expense reduced to $0.7m (FY25: $1.3m). Finance income was $1.2m (FY25: $1.4m), and finance expense reduced to $1.9m (FY25: $2.7m). Profit before taxation consequently increased to $25.8m (FY25: $24.0m).

 

Taxation

 

The Group generates profits in both the UK and the US. The effective tax rate reflects the applicable tax rates in each jurisdiction, the geographic mix of taxable profits, the tax treatment of internally developed software and share-based awards, the deductibility of expenditure and adjustments relating to prior years.

 

The tax charge for FY26 was $6.0m (FY25: $4.3m), representing an effective tax rate of 23% (FY25: 18%).

 

The FY25 effective tax rate benefited from a one-time credit of $1.5m. Without this benefit, the FY25 effective tax rate would have been approximately 24%.  The FY26 effective tax rate is therefore broadly consistent with the underlying rate for the prior year.

 

EPS

 

The Group delivered Adjusted basic EPS of 116.8 cents (FY25: 116.1 cents) and Adjusted diluted EPS of 115.6 cents (FY25: 114.2 cents). Accordingly, Basic EPS was 56.6 cents (FY25: 56.2 cents), and diluted EPS was 56.0 cents (FY25: 55.2 cents).

 

Adjusted earnings exclude tax-adjusted exceptional costs of $0.1m (FY25: $0.1m) and tax-adjusted amortisation of acquired intangible assets of $20.9m (FY25: $20.9m). Adjusted profit attributable to shareholders was $40.7m (FY25: $40.7m).

 

The share buyback increased the number of shares held in treasury during the final quarter of FY26 therefore reducing the number of shares in circulation. The full effect on the weighted average number of shares will arise in FY27.

 

Cash and Bank Facilities

 

Cash generation and balance sheet strength are priorities for the Group. Our business model, based on recurring revenues, multi-year contracts and high levels of customer retention, supports strong cash generation.

 

Operating Cash Conversion is measured as cash generated from operations, adjusted to exclude exceptional cash costs and movements in cash held on behalf of customers, divided by Adjusted EBITDA.

 

Cash and cash equivalents were $54.8m at 30 June 2026 (FY25: $55.9m). Cash generated from operations was $55.4m (FY25: $69.6m), with the reduction materially impacted by a $10.4m decrease in cash held on behalf of customers due to normal fluctuations within customers operations. This movement is excluded from Operating Cash Conversion, consistent with prior years.

 

During the year the Group:

 

• made tax payments totalling $12.5m (FY25: $9.7m);
• paid dividends of $15.7m (FY25: $13.3m);
• invested $16.9m in capitalised development expenditure (FY25: $14.9m);
• made loan principal and interest payments of $5.6m (FY25: $10.2m); and
• completed a share buyback at a total cost of $25m, plus directly attributable expenses of $0.1m (FY25: $nil).

The Group’s unsecured $100m RCF matures in August 2028, with options for two one-year extensions. At the year end, $56m remained undrawn. A further $100m accordion facility is available subject to the relevant terms. All covenants were met throughout the year.  A $20m drawdown was made under the RCF during FY26 to part-fund the share buyback. Total bank debt at 30 June 2026 was $43.5m (FY25: $27.7m).

 

The Group’s liquidity and covenant headroom have been specifically considered within both the Going Concern and Viability assessments, including the reset of the revenue assumptions adopted following the post-year-end cyber security incident.

 

Balance Sheet

 

Total assets at 30 June 2026 were $521.7m (FY25: $551.1m), with total liabilities of $203.1m (FY25: $213.5m) and total equity of $318.7m (FY25: $337.6m).

 

Goodwill remained unchanged at $235.2m. Acquired intangible assets reduced to $103.6m (FY25: $124.5m) as a result of amortisation, while other intangible assets increased to $66.6m (FY25: $61.2m), reflecting capitalised development expenditure net of amortisation.

 

Trade and other receivables reduced to $56.8m in aggregate (FY25: $67.4m), reflecting collections and the timing of billing. Deferred income reduced to $56.6m (FY25: $64.6m).  Deferred income, accrued income and prepaid sales commissions arise where contractual billing and cash profiles do not exactly match the timing of revenue and related expense recognition under the Group’s SaaS business model.

 

As outlined above, amounts held on behalf of customers reduced to $50.9m (FY25: $61.3m). These funds relate to services that connect customers with their contract pharmacy networks. Because the funds are not held outside the Group’s treasury facilities, they are included within both cash and current liabilities. Movements in these balances are consistently excluded from the Group’s Operating Cash Conversion measure.

 

The capital reduction approved by shareholders and confirmed by the Court became effective in November 2025, resulting in the cancellation of the Company’s share premium account and merger reserve, creating additional distributable reserves of $284.2m. The capital reduction provides additional flexibility for future capital allocation but does not change the Board’s approach to assessing liquidity, solvency, covenant headroom, investment requirements and the interests of stakeholders when considering future distributions or returns of capital.

 

The Company purchased 1,276,957 Ordinary Shares under the $25m share buyback programme. At 30 June 2026, 1,305,021 Ordinary Shares were held in treasury, primarily to satisfy future employee share plan awards.

 

Currency

 

The functional currency of the Group, its debt and the majority of its cash reserves is the US Dollar, reflecting the currency in which substantially all of the Group’s revenue is generated.

 

Approximately 20% of the Group’s cost base is denominated in Sterling, principally relating to UK employees and UK operating costs. The Group therefore continues to monitor movements in the Sterling to US Dollar exchange rate and considers hedging strategies where appropriate.

 

The average exchange rate during FY26 was $1.3419/£1, compared with $1.2942/£1 in FY25. The exchange rate at 30 June 2026 was $1.3233/£1, compared with $1.3713/£1 at 30 June 2025.

 

Post Balance Sheet Event

 

On 20 July 2026, the Company announced that it had identified and responded to a cyber security incident involving unauthorised access to a subset of the Group’s data environment.

 

The Group activated its established incident response plan immediately and appointed external cyber security and forensic specialists to work alongside the Group’s internal teams and retained cyber security providers. The unauthorised access was contained, there was no disruption to customer services or the Group’s core operations, and external specialists confirmed that there were no residual indicators of compromise arising from the incident within the Group’s systems.

 

The investigation established that a significant volume of file names were viewed and exfiltrated. The Group’s current assessment is that a large element of the data involved is non-sensitive or already publicly available regulatory data. However, a proportion of Craneware employee data and a subset of customer and partner records were also accessed and exfiltrated.

 

The Group is continuing to assess the precise nature and scope of the data involved and is working with its advisers to identify affected parties and make appropriate notifications, including to relevant regulators. Law enforcement and other agencies, including the Information Commissioner’s Office in the UK and the Federal Bureau of Investigation in the US, have been notified.

 

At the date of approval of these financial statements, the investigation remains ongoing. It is therefore not yet possible to determine the ultimate financial consequences, if any, arising from the incident. The Group continues to assess investigation, containment, remediation, legal, notification and professional adviser costs, potential regulatory or third-party matters, and the extent of any recovery under relevant insurance policies.

 

Costs incurred after the balance sheet date will be recognised in the period in which the relevant services are received. No adjustment has been made to amounts recognised at 30 June 2026 in relation to the incident, which has been treated as a non-adjusting event after the reporting period.

 

The Board has specifically considered the incident and its potential consequences within both the Going Concern and Viability assessments. The severe but plausible downside modelling incorporates prudent assessments relating to the overall amounts and timing of:

 

• a prudent reset of revenue assumptions;
• cyber investigation, remediation and notification expenditure;
• potential legal and litigation expenditure;
• any regulatory fines or penalties;
• sensitivities relating to customer retention;
• management actions available to protect liquidity and profitability, including the prioritisation of investment and rebalancing of the cost base.

Under the severe but plausible downside scenarios modelled, the Group retains sufficient liquidity and covenant headroom and is able to meet its liabilities as they fall due.

 

The Board has therefore concluded that it remains appropriate to adopt the Going Concern basis of preparation and that the incident does not currently give rise to a material uncertainty related to Going Concern. The Directors have also concluded that, taking account of the scenarios assessed and available mitigating actions, they have a reasonable expectation that the Group will continue in operation and meet its liabilities as they fall due over the three-year Viability assessment period.  In making this conclusion the Board has assessed that the Group’s unsecured $100m RCF which matures in August 2028, will be extended under the options for two one-year extensions and lender consent is granted.  The investigation and any resulting financial or commercial implications will remain under active review.

 

Dividend

 

The Board considers the Group’s trading performance, cash generation, investment requirements, balance sheet, distributable reserves, available liquidity and medium-term outlook when determining its dividend recommendation.

 

Following the increased interim dividend paid during the year, the Board is recommending a final dividend of 17.0p per share (FY25: 18.5p), to maintain the total dividend for FY26 of 32.0p per share (FY25: 32.0p).

 

The recommendation balances returns to shareholders with the importance of maintaining appropriate liquidity and investment capacity while medium-term expectations are reset and the cyber security investigation remains ongoing.

 

Subject to shareholder approval at the Annual General Meeting, the final dividend is expected to be paid on 22 December 2026 to shareholders on the register at 4 December 2026, with a corresponding ex-dividend date of 3 December 2026.

 

The final dividend may be paid in US Dollars to shareholders who have registered to receive their dividend in US Dollars under the Company’s Dividend Currency Election arrangements by the applicable deadline. The exact amount to be paid in US Dollars will be calculated by reference to the exchange rate announced on 4 December 2026.

 

Outlook

 

While the immediate impact of the security incident has been contained, the full financial outcomes are yet to be quantified, including the impact of future customer engagement. Therefore, while the Board remains confident in the long-term outlook for the Group and the growth opportunities, it is taking a prudent view of its revenue expectations in FY27, resetting them to the equivalent of the Company’s Annual Recurring Revenue of c.$185m.

 

A comprehensive review of the cost base has been initiated to provide a solid foundation for future growth with an expectation that the Group’s overall EBITDA margin will be maintained in the medium term.

 

340B tailwinds are expected to build in H2 FY27, as clarity regarding the shape of the program emerges. This is expected to generate increased demand for the Group’s newly expanded range of 340B software offerings and tech-enabled services as we move through the year. These tailwinds are not included in the Company’s revenue expectations.

 

In FY27, our priorities are to renew long-term customer contracts, expand recurring revenue through sales to new and existing customers, ensure our cost base is suitably sized and maintain strong cash generation, providing a platform for growth in FY28 and beyond. 

 

Looking ahead, our financial resilience, deep integration into core customer workflows and proprietary data provide a strong long-term foundation for sustained value generation, as we support our customers in transforming the business of healthcare.

 

Keith Neilson

CEO, Craneware plc

20 September 2026

 

Craig Preston

CFO, Craneware plc

20 September 2026

 

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2026

 

		Total	Total
		2026	2025
	Notes	$’000	$’000
Continuing operations:
Revenue from contracts with customers	3	205,958	205,657
Cost of sales		(33,104)	(26,384)
Gross profit		172,854	179,273
Other income		639	57
Operating expenses	4	(145,289)	(151,759)
Net impairment charge on financial and contract assets	4	(1,750)	(2,319)
Operating profit	4	26,454	25,252
Analysed as:
Adjusted EBITDA1		67,130	65,258
Share-based payments		(6,138)	(5,695)
Depreciation of property, plant and equipment		(1,987)	(2,826)
Exceptional costs2	4	(90)	(102)
Amortisation of intangible assets – other	8	(11,540)	(10,462)
Amortisation of intangible assets – acquired intangibles	8	(20,921)	(20,921)
Finance income		1,236	1,446
Finance expense		(1,930)	(2,719)
Profit before taxation		25,760	23,979
Tax on profit	5	(6,028)	(4,316)
Profit for the year attributable to owners of the parent		19,732	19,663
Total comprehensive income attributable to owners of the parent		19,732	19,663

1. See Note 15 for explanation of Alternative Performance Measures.
2. Exceptional costs relate to legal fees associated with the Company’s capital reduction (FY25: legal fees associated with the unsolicited approach to acquire the Group and also the Company’s proposed capital reduction).

 

Earnings per share for the year attributable to equity holders

 

	Notes	2026	2025
Basic ($ per share)	7	0.566	0.562
*Adjusted Basic ($ per share)	7	1.168	1.161
Diluted ($ per share)	7	0.560	0.552
*Adjusted Diluted ($ per share)	7	1.156	1.142

 

* Adjusted Earnings per share calculations allow for the tax adjusted exceptional costs (if applicable in the year) together with amortisation on acquired intangible assets.

 

 

 

 

Consolidated Statement of Changes in Equity for the year ended 30 June 2026

 

 

		Share		Capital
	Share	Premium	Treasury	Redemption	Merger	Other	Retained	Total
	Capital	Account1.	Shares	Reserve	Reserve1.	Reserves	Earnings	Equity
	$’000	$’000	$’000	$’000	$’000	$’000	$’000	$’000
At 1 July 2024	659	97,204	(4,492)	9	186,981	8,890	39,341	328,592
Total comprehensive income – profit for the year	-	-	-	-	-	-	19,663	19,663
Transactions with owners:
Share-based payments	-	-	-	-	-	5,695	-	5,695
Purchase of own shares through EBT	-	-	-	-	-	-	(105)	(105)
Deferred tax taken directly to equity	-	-	-	-	-	-	(730)	(730)
Impact of share options and awards exercised/lapsed	-	-	1,688	-	-	(3,343)	(633)	(2,288)
Dividends (Note 6)	-	-	-	-	-	-	(13,268)	(13,268)
At 30 June 2025	659	97,204	(2,804)	9	186,981	11,242	44,268	337,559
Total comprehensive income – profit for the year	-	-	-	-	-	-	19,732	19,732
Transactions with owners:
Share-based payments	-	-	-	-	-	6,263	-	6,263
Purchase of own shares through EBT	-	-	-	-	-	-	(137)	(137)
Purchase of own shares through share buyback2.	-	-	(25,080)	-	-	-	-	(25,080)
Deferred tax taken directly to equity	-	-	-	-	-	-	(1,834)	(1,834)
Impact of share options and awards exercised/lapsed	-	-	2,209	-	-	(5,820)	1,509	(2,102)
Capital reduction1.	-	(97,204)	-	-	(186,981)	-	284,185	-
Dividends (Note 6)	-	-	-	-	-	-	(15,742)	(15,742)
At 30 June 2026	659	-	(25,675)	9	-	11,685	331,981	318,659

 

 

1.Share premium and merger reserve balances re-categorised to retained earnings following the capital reduction effective 7 November 2025

2.During the year ended 30 June 2026 the Company purchased 1,276,957 of its own Ordinary Shares in accordance with a share buyback programme which commenced on 16 March 2026 and completed on 12 May 2026

 

Consolidated Balance Sheet as at 30 June 2026

 

	Notes	2026	2025
		$’000	$’000
ASSETS
Non-Current Assets
Property, plant and equipment		4,736	6,252
Intangible assets – goodwill	8	235,236	235,236
Intangible assets – acquired intangibles	8	103,564	124,485
Intangible assets – other	8	66,589	61,243
Trade and other receivables	9	2,582	3,752
Deferred tax	10	-	499
		412,707	431,467
Current Assets
Trade and other receivables	9	54,224	63,672
Cash and cash equivalents		54,816	55,921
		109,040	119,593
Total Assets		521,747	551,060
EQUITY AND LIABILITIES
Non-Current Liabilities
Borrowings	12	43,495	-
Leased property		2,155	3,011
Deferred tax	10	27,937	28,806
Other provisions		209	574
		73,796	32,391
Current Liabilities
Borrowings	12	-	27,740
Deferred income		56,604	64,561
Amounts held on behalf of customers		50,910	61,323
Tax payable		535	2,045
Trade and other payables	13	21,243	25,441
		129,292	181,110
Total Liabilities		203,088	213,501
Equity
Share capital		659	659
Share premium account		-	97,204
Treasury shares		(25,675)	(2,804)
Capital redemption reserve		9	9
Merger reserve		-	186,981
Other reserves		11,685	11,242
Retained earnings		331,981	44,268
Total Equity		318,659	337,559
Total Equity and Liabilities		521,747	551,060

 

 

 

Consolidated Statement of Cash Flows for the year ended 30 June 2026 

 

	Notes	2026	2025
		$'000	$'000
Cash flows from operating activities
Cash generated from operations	11	55,435	69,595
Tax paid		(12,541)	(9,697)
Net cash generated from operating activities		42,894	59,898
Cash flows from investing activities
Purchase of property, plant and equipment		(473)	(491)
Capitalised intangible assets	8	(16,886)	(14,878)
Interest received		1,236	1,384
Net cash used in investing activities		(16,123)	(13,985)
Cash flows from financing activities
Dividends paid to company shareholders	6	(15,742)	(13,268)
Proceeds from issuance of treasury shares		-	5
Repayment of borrowings	12	(4,138)	(8,000)
Drawdown of borrowings	12	20,138	-
Interest on borrowings		(1,499)	(2,176)
Loan arrangement fees		(400)	-
Purchase of own shares by EBT		(137)	(105)
Share buyback programme		(25,080)	-
Payment of lease liabilities		(879)	(861)
Payment of lease interest		(139)	(176)
Net cash used in financing activities		(27,876)	(24,581)
Net (decrease)/ increase in cash and cash equivalents		(1,105)	21,332
Cash and cash equivalents at the start of the year		55,921	34,589
Cash and cash equivalents at the end of the year		54,816	55,921

 

 

Notes to the Financial Statements

 

General Information

Craneware plc (“the Company”) is a public limited company incorporated and domiciled in Scotland and limited by shares. The Company has a primary listing on the Alternative Investment Market (‘AIM’) of the London Stock Exchange. The principal activity of the Company continues to be the development, licensing and ongoing support of computer software for the US healthcare industry.

 

Basis of preparation

The financial statements of the Group and the Company are prepared in accordance with UK adopted international accounting standards (International Financial Reporting Standards (“IFRS”)) and the applicable legal requirements of the Companies Act 2006.

 

The Group and the Company financial statements have been prepared under the historic cost convention and prepared on a going concern basis. The Strategic Report contains information regarding the Group’s activities and an overview of the development of its products, services and the environment in which it operates. The Group’s revenue, operating results, cash flows and balance sheet are detailed in the financial statements and explained in the Financial Review.

 

The applicable accounting policies are set out below, together with an explanation of where changes have been made to previous policies on the adoption of new accounting standards in the year, if relevant.

 

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

 

The Company and its subsidiary undertakings are referred to in this report as the Group.

 

Going concern

 

The Group is profitable and there is a reasonable expectation that this will continue to be the case.  Our business model is delivering high levels of recurring revenue, supported by long term underlying contracts, that deliver high levels of cash generation.  In addition, the Group has cash and cash equivalents of $54.8m as well as a committed but undrawn facility available to it of $56m.

 

The Directors have prepared cash flow forecasts covering a period of over twelve months from the date of approval of these financial statements.  These forecasts include consideration of severe but plausible downsides, should these events occur, the Group would have sufficient liquidity and covenant headroom to meet its liabilities as they fall due for that period.  The severe but plausible downside modelling incorporates prudent assessments relating to the overall amounts and timing of:

- more prudent reset of revenue assumptions post cyber security incident;

- cyber investigation, remediation and notification expenditure;

- potential legal and regulatory expenditure;

- sensitivities relating to customer retention;

- management actions available to protect the liquidity and profitability, including the prioritisation of investment and rebalancing of the cost base.

Based on this assessment, the Directors have determined that the Group has adequate resources to continue in business and that it is therefore appropriate to adopt the going concern basis in preparing the consolidated and the Company financial statements.  In making this conclusion the Directors have assessed that the Group’s unsecured $100m RCF, which matures in August 2028, will be extended under the options for two one-year extensions and lender consent is granted.

 

1. Selected principal accounting policies

 

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied, unless otherwise stated.

 

Reporting currency

The Directors consider that, as the Group’s revenues are primarily denominated in US dollars, the Company’s functional currency is the US dollar. The Group’s financial statements are therefore prepared in US dollars.

 

Currency translation

 

Transactions denominated in currencies other than US dollars are translated into US dollars at the rate of exchange ruling at the date of the transaction. The average exchange rate during the course of the year was $1.3419/£1 (FY25: $1.2942/£1). Monetary assets and liabilities expressed in foreign currencies are translated into US dollars at rates of exchange ruling at the Balance Sheet date $1.3233/£1 (FY25: $1.3713/£1). Exchange gains or losses arising upon subsequent settlement of the transactions and from translation at the Balance Sheet date, are included within the related category of expense where separately identifiable, or administrative expenses.

 

Revenue from contracts with customers

The Group follows the principles of IFRS 15, ‘Revenue from Contracts with Customers’; accordingly, revenue is recognised using the five-step model.

 

Revenue is recognised either when the performance obligation in the contract has been performed (point in time recognition) or over time as control of the performance obligation is transferred to the customer. 

 

Revenue is derived from sales of software licenses, professional services, including training and consultancy, and transactional fees.

 

Revenue from software licenses

Revenue from both on premise and cloud-based software licensed products is recognised from the point at which the customer gains control and the right to access our software. The following key judgements have been made in relation to revenue recognition of software license:

•                      This is right of access software due to the integral updates provided on a regular basis to keep the software relevant and, as a result, the licensed software revenue will be recognised over time rather than at a point in time;

•                      The software license together with installation, regular updates and access to support services form a single performance obligation;

•                      The transaction price is allocated to each distinct one year license period with annual increases being recognised in the year they apply; and

•                      Discounts in relation to software licenses are recognised over the life of the contract.

 

This policy is consistent with the Company’s products providing customers with a service through the delivery of, and access to, software solutions (Software-as-a-Service (“SaaS”)), and results in revenue being recognised over the period that these services are delivered to customers.

 

Incremental costs directly attributable in securing the contract are charged equally over the life of the contract and as a consequence are matched to revenue recognised. Any deferred contract costs are included in both current and non-current trade and other receivables.

 

Revenue from professional services

Revenue from all professional services, including training and consulting services, is recognised when the performance obligation has been fulfilled and the services are provided.  These services could be provided by a third party and are therefore considered to be separate performance obligations. Where professional services engagements contain material obligations, revenue is recognised when all the obligations under the engagement have been fulfilled.

 

‘White-labelling’ or other ‘paid for development work’ is generally provided on a fixed price basis and as such revenue is recognised based on the percentage completion or delivery of the relevant project. Where percentage completion is used it is estimated based on the total number of hours performed on the project compared to the total number of hours expected to complete the project. Where contracts underlying these projects contain material obligations, revenue is deferred and only recognised when all the obligations under the engagement have been fulfilled.

 

Revenue from transactional services

Transactional service fees are recognised at the point in time when the service is provided.

 

Revenue from platform services

As individual contracts will vary, revenue is recognised when the underlying contractual performance obligations are complete.

 

Should any contracts contain non-standard clauses, revenue recognition will be in accordance with the underlying contractual terms which will normally result in recognition of revenue being deferred until all material obligations are satisfied. The Group does not have any contracts where a financing component exists within the contract.

 

The excess of amounts invoiced over revenue recognised are included in deferred income. If the amount of revenue recognised exceeds the amount invoiced the excess is included within accrued income.

 

Contract assets include sales commissions and prepaid royalties. Contract liabilities include unpaid sales commissions on contracts sold and deferred income relating to license fees billed in advance and recognised over time.

 

Exceptional items

The Group defines exceptional items as transactions (including costs incurred by the Group) which relate to non-recurring events.  These are disclosed separately where it is considered it provides additional useful information to the users of the financial statements.

 

Taxation

The tax charge is composed of current tax and deferred tax and is calculated using tax rates that have been enacted or substantively enacted by the Balance Sheet date.  Current tax and deferred tax are charged to the Statement of Comprehensive Income except where they relate to items related directly to equity.

 

Current tax is based on the profit for the year as adjusted for items which are non-assessable or disallowable.

 

Deferred taxation is computed using the liability method. Under this method, deferred tax assets and liabilities are calculated based on temporary differences between the financial reporting and tax bases of assets and liabilities.  They are measured using enacted rates and laws that will be in effect when the differences are expected to reverse. Deferred tax is not recorded when it comes from first recognising an asset or liability in a transaction that does not affect accounting profit or taxable profit at that time. Deferred tax assets are only recognised when it is probable that there will be enough taxable profit in the future to use the temporary differences.

 

Deferred tax is recorded on temporary differences from investments in subsidiaries, unless the Group controls when the difference will reverse and it is unlikely to reverse in the near future.

 

Deferred tax assets and liabilities arising in the same tax jurisdiction are offset.

 

In the UK and the US, the Group is entitled to a tax deduction for amounts treated as compensation on exercise of certain employee share options and on the vesting of conditional share awards under each jurisdiction’s tax rules. Share-based payments are recorded in the Group’s Consolidated Statement of Comprehensive Income over the period from the grant date to the vesting date of the relevant options and conditional share awards. As there is a temporary difference between the accounting and tax bases a deferred tax asset is recorded. The deferred tax asset arising is calculated by comparing the estimated amount of tax deduction to be obtained in the future (based on the Company’s share price at the Balance Sheet date) with the cumulative amount of the compensation expense recorded in the Consolidated Statement of Comprehensive Income. If the amount of estimated future tax deduction exceeds the cumulative amount of the remuneration expense at the statutory rate, the excess is recorded directly in equity against retained earnings.

 

Intangible Assets

1.       Goodwill

 

Goodwill arising on consolidation represents the excess of the cost of acquisition over the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Goodwill is recognised as a non-current asset and is not amortised. 

 

After initial recognition, goodwill is stated at cost less any accumulated impairment losses.  It is tested at least annually for impairment.  Any impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

 

Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash generating units that are expected to benefit from the business combination in which the goodwill arose.

2.      Proprietary software

 

Proprietary software acquired in a business combination is recognised at fair value at the acquisition date. Proprietary software has a finite useful economic life and is carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the associated costs over their estimated useful lives of five years.

 

3.       Customer relationships

 

Contractual customer relationships acquired in a business combination are recognised at fair value at the acquisition date. The contractual customer relationships have a finite useful economic life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method over the expected life of the customer relationship which has been assessed as up to fifteen years.

 

4.      Development costs

 

Expenditure associated with developing and maintaining the Group’s software products is recognised as incurred.

 

Development expenditure is capitalised where new product development projects

• are technically feasible;

• production and sale is intended;

• a market exists;

• expenditure can be measured reliably; and

• sufficient resources are available to complete such projects.

 

Costs are capitalised until initial commercialisation of the product and thereafter amortised on a straight-line basis over its estimated useful life, which has been assessed as between five and ten years. Expenditure not meeting the above criteria is expensed as incurred. 

 

Employee costs and specific third party costs involved with the development of the software are included within amounts capitalised.

 

5.       Computer software

 

Costs associated with acquiring computer software and licensed to use technology are capitalised as incurred, except cloud computing software where the Group does not have control of the software which is expensed as incurred. They are amortised on a straight-line basis over their useful economic life which is typically three to five years.

 

6.       Trademarks

 

Trademarks acquired in a business combination are initially measured at fair value at the acquisition date.  Trademarks have a finite useful economic life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the associated costs over their estimated useful lives of up to ten years.

 

Impairment of non-financial assets

At each reporting date the Group considers the carrying amount of its tangible and intangible assets including goodwill to determine whether there is any indication that those assets have suffered an impairment loss. If there is such an indication, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any) through determining the value in use of the cash generating unit (‘CGU’) that the asset relates to.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the impairment loss is recognised as an expense.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset. A reversal of an impairment loss is recognised as income immediately. Impairment losses relating to goodwill are not reversed.

 

2. Critical accounting estimates and judgements

 

The preparation of financial statements in accordance with IFRS requires the Directors to make critical accounting estimates and judgements that affect the amounts reported in the financial statements and accompanying notes. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying value of assets and liabilities within the next financial year are discussed below:

 

Critical Estimates

• Impairment assessment: the Group tests annually whether Goodwill has suffered any impairment and for other assets, including acquired intangibles, at any point where there are indications of impairment. This requires an estimation of the recoverable amount of the applicable cash generating unit to which the Goodwill and other assets relate. Estimating the recoverable amount requires the Group to make an estimate of the expected future cash flows from the specific cash generating unit using certain key assumptions including growth rates and a discount rate. These assumptions result in no impairment in Goodwill.  See Note 8 for current year assumptions and sensitivities.

 

Other Estimates

• Useful lives of intangible assets: in assessing useful life, the Group uses careful judgement based on past experience, advances in product development and also best practice. The Group amortises intangible assets over a period of up to 15 years.

 

Judgements

• Capitalisation of development expenditure: the Group capitalises development costs provided the aforementioned conditions have been met. Consequently, the Directors require to continually assess the commercial potential of each product in development and its useful life following launch. 
• Provisions for income taxes: the Group is subject to tax in the UK and US and this requires the Directors to regularly assess the appropriateness of its transfer pricing policy.
• Revenue recognition: in determining the amount of revenue and related balance sheet items to be recognised in the year, management is required to make a number of judgements and assumptions. These are detailed in Note 1 Revenue from contracts with customers.

 

 

3. Revenue

 

The chief operating decision maker has been identified as the Board of Directors. The Group revenue is derived almost entirely from the sale of software licenses and professional services (including installation) to hospitals and health systems within the US. Consequently, the Board has determined that the Group supplies only one geographical market place and as such revenue is presented in line with management information without the need for additional segmental analysis. All of the Group assets are located in the United States of America with the exception of the Parent Company’s, the net assets of which are disclosed separately on the Company Balance Sheet and are located in the United Kingdom.

	2026	2025
	$'000	$'000
Software licensing	130,392	134,758
Professional services - recurring	5,859	5,706
Transactional revenue	38,889	35,784
Contracted recurring revenue	175,140	176,248
Professional services - non-recurring	8,342	9,399
Platform revenues – non-recurring	22,476	20,010
Total revenue	205,958	205,657

 

Contract assets

The Group has recognised the following assets related to contracts with customers:

	2026	2025
	$'000	$'000
Prepaid commissions and royalties < 1 year	2,086	2,291
Prepaid commissions and royalties > 1 year	2,373	3,248
Total contract assets	4,459	5,539

 

Contract assets are included within deferred contract costs and prepayments in the Balance Sheet. Costs recognised during the year in relation to assets at 30 June 2025 were $2.3m.

 

Contract liabilities

The following table shows the total contract liabilities from software license and professional service contracts:

 

	2026	2025
	$'000	$'000
Software licensing	47,856	55,690
Professional services	8,748	8,871
Total contract liabilities	56,604	64,561

 

Contract liabilities are included within deferred income in the Balance Sheet.

 

Revenue of $63.9m was recognised during the year in relation to contract liabilities as of 30 June 2025.

 

 

The following table shows the aggregate transaction price allocated to performance obligations that are partially or fully unsatisfied from software license and professional service contracts. 

 

	Total unsatisfied	Expected recognition
	performance obligations	< 1 year	1 to 2 years	2 to 3 years	> 3 years
Revenue expected to be recognised	$'000	$'000	$'000	$'000	$'000
At 30 June 2026
-       Software	284,922	112,638	74,791	42,425	55,068
-       Professional services	17,551	10,317	3,600	1,794	1,840
Total at 30 June 2026	302,473	122,955	78,391	44,219	56,908
At 30 June 2025
-       Software	308,986	117,830	83,489	50,061	57,606
-       Professional services	17,228	10,730	2,850	1,736	1,912
Total at 30 June 2025	326,214	128,560	86,339	51,797	59,518

 

Revenue of $127.9m was recognised during the year in relation to unsatisfied performance obligations as of 30 June 2025.

 

The majority of these performance obligations are unbilled at the Balance Sheet date and therefore not reflected in these financial statements.

 

4. Operating profit

 

The following items have been included in arriving at operating profit:

 

	2026	2025
	$'000	$'000
Employee costs	100,220	99,736
Employee costs capitalised	(11,972)	(9,738)
Depreciation of property, plant and equipment	1,987	2,826
Amortisation of intangible assets – other	11,540	10,462
Amortisation of intangible assets – acquired intangibles	20,921	20,921
Impairment of trade receivables	979	1,570
Exceptional costs*	90	102
Operating lease rents for premises	11	20

 

* Exceptional costs relate to legal fees for the Company’s capital reduction (FY25: legal fees associated with the unsolicited approach to acquire the Group and also the Company’s proposed capital reduction)

 

Included in reaching operating profit is the movement in the provision for impairment of trade receivables during the year of a $1,760,000 charge (FY25: $2,448,000), plus $10,000 net impairment credit (FY25: $129,000) for trade receivables recognised directly in operating costs.

 

 

5. Tax on profit

	2026	2025
	$'000	$'000
Profit on ordinary activities before tax	25,760	23,979
Current tax
Corporation tax on profits of the year	8,033	11,118
Adjustments for prior years	199	(1,671)
Total current tax charge	8,232	9,447
Deferred tax
Deferred tax for current year	(2,051)	(5,016)
Adjustments for prior years	(173)	175
Change in tax rate	20	(290)
Total deferred tax credit	(2,204)	(5,131)
Tax on profit	6,028	4,316
The difference between the current tax charge on ordinary activities for the year, reported in the Consolidated Statement of Comprehensive Income, and the current tax charge that would result from applying a relevant standard rate of tax to the profit on ordinary activities before tax, is explained as follows:
Profit on ordinary activities at the UK tax rate 25% (FY25: 25%)	6,440	5,995
Effects of:
Adjustment for prior years	26	(1,496)
Change in tax rate on opening deferred tax balance	20	(290)
Additional US taxes on profits 25% (FY25: 25%)	(121)	255
Internally developed software	(259)	(418)
Expenses not deductible for tax purposes	718	800
Income (taxable)/ not taxable in the year	(90)	346
Tax deductions in excess of accounting deductions	(608)	-
Spot rate remeasurement	(5)	29
Movement in tax losses	315	-
Deduction on share plan charges	(570)	(830)
Other	162	(75)
Total tax charge	6,028	4,316

 

 

6. Dividends

 

The dividends paid during the year were as follows:-

	2026	2025
	$’000	$’000
Final dividend, re 30 June 2025 – 25.4 cents (18.5 pence)/share	8,689	7,100
Interim dividend, re 30 June 2026 – 20.25 cents (15.0 pence)/share	7,053	6,168
Total dividends paid to Company shareholders in the year	15,742	13,268

 

Prior year:

Final dividend 20.23 cents (16.0 pence)/share

Interim dividend 16.87 cents (13.5 pence)/share

 

The proposed final dividend 22.5 cents (17.0 pence), as noted in the Financial Review section of the Strategic Report, for the year ended 30 June 2026 is subject to approval by the shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.

 

7. Earnings per share

 

The calculation of basic and diluted earnings per share is based on the following data:

 

Weighted average number of shares

	2026	2025
	No. of Shares	No. of Shares
	000s	000s
Weighted average number of Ordinary Shares for the purpose of basic earnings per share (excluding own shares held)	34,861	35,011
Effect of dilutive potential Ordinary Shares: share options and LTIPs	375	584
Weighted average number of Ordinary Shares for the purpose of diluted earnings per share	35,236	35,595

 

The Group has one category of dilutive potential Ordinary shares, being those granted to Directors and employees under the employee share plans.

 

Shares held by the Employee Benefit Trust and Treasury Shares held directly by the Company are excluded from the weighted average number of Ordinary shares for the purposes of basic earnings per share.

 

Profit for year

	2026	2025
	$’000	$’000
Profit for the year attributable to equity holders of the parent	19,732	19,663
Exceptional costs (tax adjusted)	65	77
Amortisation of acquired intangibles (tax adjusted)	20,921	20,921
Adjusted profit for the year attributable to equity holders of the parent	40,718	40,661

 

Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of shares in issue during the year.

 

For diluted earnings per share, the weighted average number of Ordinary shares calculated above is adjusted to assume conversion of all dilutive potential Ordinary shares.

 

 

Earnings per share

	2026	2025
	cents	cents
Basic EPS	56.6	56.2
Diluted EPS	56.0	55.2
Adjusted basic EPS	116.8	116.1
Adjusted diluted EPS	115.6	114.2

 

 

 

 

8. Intangible assets

 

 

	Goodwill	Customer	Proprietary		Development		Computer
		Relationships	Software	Trademarks	Costs		Software		Total
	$'000	$'000	$'000	$'000	$'000		$'000		$'000
Cost
At 1 July 2025	235,486	151,000	51,503	5,000	99,443		4,246		546,678
Additions	-	-	-	-	16,886		-		16,886
Disposals	-	-	-	-	(4,868)		-		(4,868)
At 30 June 2026	235,486	151,000	51,503	5,000	111,461		4,246		558,696
Accumulated amortisation and impairment
At 1 July 2025	250	39,942	40,872	2,204	38,282		4,164		125,714
Charge for the year	-	10,067	10,298	556	11,495		45		32,461
Amortisation on disposals	-	-	-	-	(4,868)		-		(4,868)
At 30 June 2026	250	50,009	51,170	2,760	44,909		4,209		153,307
Net Book Value at 30 June 2026	235,236	100,991	333	2,240	66,552		37		405,389
Cost
At 1 July 2024	235,486	153,964	52,724	5,000	86,817		4,246		538,237
Additions	-	-	-	-	14,878		-		14,878
Disposals	-	(2,964)	(1,221)	-	(2,252)		-		(6,437)
At 30 June 2025	235,486	151,000	51,503	5,000	99,443		4,246		546,678
Accumulated amortisation and impairment
At 1 July 2024	250	32,839	31,794	1,649	30,145		4,091		100,768
Charge for the year	-	10,067	10,299	555	10,389		73		31,383
Amortisation on disposals	-	(2,964)	(1,221)	-	(2,252)		-		(6,437)
At 30 June 2025	250	39,942	40,872	2,204	38,282		4,164		125,714
Net Book Value at 30 June 2025	235,236	111,058	10,631	2,796	61,161		82		420,964

 

In accordance with the Group’s accounting policy, the carrying values of Goodwill and other intangible assets are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill arose on the acquisition of subsidiaries and is split into the following CGUs:

 

	2026	2025
	$’000	$’000
Craneware InSight	11,188	11,188
Sentry	224,048	224,048
Total Goodwill	235,236	235,236

 

Craneware InSight

 

The carrying values are assessed for impairment purposes by calculating the value in use of the core Craneware business cash generating unit. This is the lowest level of which there are separately identifiable cash flows to assess the Goodwill acquired as part of the Craneware InSight, Inc. purchase.

 

 

Sentry

 

The carrying values are assessed for impairment purposes by calculating the value in use of the Sentry business cash generating unit. This is the lowest level of which there are separately identifiable cash flows to assess the Goodwill acquired as part of the Sentry acquisition.

 

The key assumptions in assessing value in use for the CGU’s are:

 

	Growth rate in perpetuity		Pre-tax discount rate
	2026	2025	2026	2025
Craneware InSight	2.0%	2.0%	10.2%	10.4%
Sentry	2.0%	2.0%	10.1%	10.7%

 

 

After the initial term of 5 years, the Group applied a growth rate for each CGU. These take into consideration the customer bases and expected revenue commitments from it, anticipated additional sales to both existing and new customers and market trends currently seen and those expected in the future. 

 

The Group has assessed events and circumstances in the year and the assets and liabilities of the business cash-generating units; this assessment has confirmed that no significant events or circumstances occurred in the year and that the assets and liabilities showed no significant change from last year.

 

After review of future forecasts, the Group confirmed the growth forecast for the next five years showed that the recoverable amounts would continue to exceed the carrying values. There are no reasonable possible changes in assumptions that would result in an impairment in the Craneware InSight CGU and certain disclosures, including sensitivities, relating to goodwill have not been made for this CGU given the significant headroom on impairment testing.

 

For the Sentry CGU, the impairment assessment was most sensitive to the discount rate assumption. The Group's cash flow forecasts have been prepared on a prudent basis, incorporating management's assessment of the principal risks and uncertainties affecting the CGU. This includes scenarios reflecting the potential financial and operational impacts of the cyber security incident (see Note 14) and a potential delayed adverse customer response. Risks associated with the 340B regulatory environment are continuously monitored and are reflected, where appropriate, within the forecast assumptions. As these risks have been incorporated within the cash flow projections, significant changes to the discount rate are not anticipated. The CGU continues to benefit from long-standing customer relationships, highly recurring revenue streams and a strong focus on customer success, which support the long-term cash generation assumptions underpinning the impairment assessment.

 

9. Trade and other receivables

	2026	2025
	$'000	$'000
Trade receivables	44,884	57,462
Less: provision for impairment of trade receivables	(4,422)	(3,641)
Net trade receivables	40,462	53,821
Other receivables	816	1,207
Current tax receivable	2,780	-
Prepayments and accrued income	8,589	7,151
Deferred contract costs	4,159	5,245
	56,806	67,424
Less non-current receivables:
Other debtors	(209)	(504)
Deferred contract costs	(2,373)	(3,248)
Current portion	54,224	63,672

 

 

10. Deferred tax

 

Deferred tax is calculated in full on the temporary differences under the liability method using a rate of tax of 25% (FY25: 25%) in the UK and 25% (FY25: 25%) in the US including a provision for state taxes.

	2026	2025
	$'000	$'000
At 1 July	(28,307)	(32,708)
Credit to comprehensive income	2,204	5,131
Transfer direct to equity	(1,834)	(730)
At 30 June	(27,937)	(28,307)

 

The movements in deferred tax assets and liabilities during the year are shown below. Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net. The balances for the Group are analysed as follows:

	2026	2025
	$'000	$'000
Net deferred tax asset	-	499
Net deferred tax liability	(27,937)	(28,806)
At 30 June	(27,937)	(28,307)

 

Deferred tax assets - recognised

 

	Short term timing differences $’000	Losses $’000	Share options $’000	Total $’000
A 1 July 2025	2,557	351	4,022	6,930
(Charged)/ credited to comprehensive income	(430)	(351)	25	(756)
Charged to equity	-	-	(1,834)	(1,834)
Total provided at 30 June 2026	2,127	-	2,213	4,340
At 1 July 2024	2,610	390	4,514	7,514
(Charged)/ credited to comprehensive income	(53)	(39)	238	146
Charged to equity	-	-	(730)	(730)
Total provided at 30 June 2025	2,557	351	4,022	6,930

 

Deferred tax liabilities - recognised

 

		Long term timing differences $’000	Accelerated tax depreciation $’000	Total $’000
A 1 July 2025		(32,290)	(2,947)	(35,237)
Credited to comprehensive income		2,289	671	2,960
Total provided at 30 June 2026		(30,001)	(2,276)	(32,277)
At 1 July 2024		(37,979)	(2,243)	(40,222)
Credited/ (charged) to comprehensive income		5,689	(704)	4,985
Total provided at 30 June 2025		(32,290)	(2,947)	(35,237)

 

 

The analysis of the deferred tax assets and liabilities is as follows:

	2026	2025
	$'000	$'000
Deferred tax assets:
Deferred tax assets to be recovered after more than 1 year	2,213	6,579
Deferred tax assets to be recovered within 1 year	2,127	351
	4,340	6,930
Deferred tax liabilities:
Deferred tax liabilities to be recovered after more than 1 year	(32,277)	(35,237)
Deferred tax liabilities to be recovered within 1 year	-	-
	(32,277)	(35,237)
Net deferred tax liability	(27,937)	(28,307)

 

 

11. Cash flow information

 

Cash generated from operations   Reconciliation of profit before taxation to net cash generated from operations
	2026	2025
	$'000	$'000
Profit before tax	25,760	23,979
Finance income	(1,236)	(1,446)
Finance expense	1,930	2,719
Depreciation on property, plant and equipment	1,987	2,826
Amortisation of intangible assets - other	11,540	10,462
Amortisation of intangible assets – acquired intangibles	20,921	20,921
Loss on disposals	2	3
Share-based payments	6,138	5,695
Movements in working capital:
Decrease/(Increase) in trade and other receivables	13,158	(7,073)
(Decrease)/ increase in trade and other payables	(14,352)	3,463
(Decrease)/ increase in amounts held on behalf of customers	(10,413)	8,046
Cash generated from operations	55,435	69,595

 

Amounts held on behalf of customers relates to short term deposits received from pharmacies and paid out to customers within a contractual period (usually within 45 days).  These funds are not held outside of the Group’s own treasury facilities and are therefore included in cash and cash equivalents.

 

Non cash financing activities

 

	2026	2025
	$'000	$'000
Repayment of previous borrowings	(28,000)	-
Drawdown of new borrowings	28,000	-
Total	-	-

 

Further information about debt facilities can be found in Note 12.

 

12.  Borrowings

 

The debt facility was renewed on 29th August 2025 and comprises a revolving loan facility of $100m of which $44m is drawn down and an additional accordion facility of a further $100m (FY25: term loan of $8m and revolving loan facility of $100m of which $20m is drawn down) and which expires on 27 August 2028.  The Group has the ability to extend the facility for two additional one-year terms.  On the renewal of the facility, the previous facility was net settled with $28m being paid directly from the new facility to the previous facility with no cash passing through the Group. During the year, the amount drawn down on the revolving facility was increased from $28.1m to $44m.

 

Interest is charged on the facility on a daily basis at margin and compounded reference rate. The margin is related to the leverage of the Group as defined in the loan agreement. As the leverage of the Group strengthens, the applicable margin reduces.

 

	2026	2025
	$'000	$'000
Current interest bearing borrowings	-	27,740
Non current interest bearing borrowings	43,495	-
Total	43,495	27,740

 

Arrangement fees paid in advance of the setting up of the facility are being recognised over the life of the facility. The remaining balance of unamortised fees and interest at 30 June 2026 is $0.51m (FY25: $0.26m).

 

See Note 15 for a reconciliation between cash and bank debt.

 

Loan covenants

 

Under the facilities the Group is required to meet quarterly covenants tests in respect of:

1.         Adjusted leverage which is the ratio of total net debt on the last day of the relevant period to adjusted EBITDA.
2.        Interest cover which is the ratio of adjusted EBITDA to net finance changes in respect of the relevant period.

 

The Group complied with these ratios throughout the reporting period. 

 

Financing arrangements

 

The Group’s undrawn borrowing facilities were as follows:

 

	2026	2025
	$'000	$'000
Revolving facility	56,000	80,000
Accordion facility	100,000	-
Undrawn borrowing facilities	156,000	80,000

 

 

 

 

 

 

 

 

13.  Trade and other payables

	2026	2025
	$'000	$'000
Trade payables	4,030	4,058
Lease creditor due < 1 year	880	903
Other provisions < 1 year	319	490
Social security and PAYE	3,656	3,588
Other creditors	35	301
Accruals	11,406	15,326
Advanced payments	917	775
Trade and other payables	21,243	25,441

 

Other provisions relate to employer taxes due in relation to employee share plan awards of $319,000 (FY25: $490,000). There is a corresponding receivable of $307,000 included in other debtors (FY25: $333,000). Timing of the use of this provision is entirely dependent on employees requesting to exercise share awards.

 

14.  Subsequent events

 

On 20 July 2026, the Company announced that it had identified and responded to a cyber security incident involving unauthorised access to a subset of the Group’s data environment.

 

The Group activated its established incident response plan immediately and appointed external cyber security and forensic specialists to work alongside the Group’s internal teams and retained cyber security providers. The unauthorised access was contained, there was no disruption to customer services or the Group’s core operations, and external specialists confirmed that there were no residual indicators of compromise arising from the incident within the Group’s systems.

 

The investigation established that a significant volume of file names were viewed and exfiltrated. The Group’s current assessment is that a large element of the data involved is non-sensitive or already publicly available regulatory data. However, a proportion of Craneware employee data and a subset of customer and partner records were also accessed and exfiltrated.

 

The Group is continuing to assess the precise nature and scope of the data involved and is working with its advisers to identify affected parties and make appropriate notifications, including to relevant regulators. Law enforcement and other agencies, including the Information Commissioner’s Office in the UK and the Federal Bureau of Investigation in the US, have been notified.

 

At the date of approval of these financial statements, the investigation remains ongoing. It is therefore not yet possible to determine the ultimate financial consequences, if any, arising from the incident. The Group continues to assess investigation, containment, remediation, legal, notification and professional adviser costs, potential regulatory or third-party matters, and the extent of any recovery under relevant insurance policies. The Board has considered the potential financial, commercial and reputational consequences of the incident as part of its going concern and viability assessments. Further information is included in the going concern disclosure and Viability Statement.

 

Costs incurred after the balance sheet date will be recognised in the period in which the relevant services are received. No adjustment has been made to amounts recognised at 30 June 2026 in relation to the incident, which has been treated as a non-adjusting event after the reporting period.

 

15.  Alternative performance measures

 

The Group’s performance is assessed using a number of financial measures which are not defined under IFRS and are therefore non-GAAP (alternative) performance measures. 

 

The Directors believe these measures enable the reader to focus on what the Group regard as a more reliable indicator of the underlying performance of the Group since they exclude items which are not reflective of the normal course of business, accounting estimates and non-cash items. The adjustments made are consistent and comparable with other similar companies.  Alternative performance measures may be viewed as having limitations due to certain items being excluded that would be included in GAAP measures.

 

Adjusted EBITDA

 

Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, exceptional items and share based payments.

 

		2026	2025
		$’000	$’000
Operating profit		26,454	25,252
Depreciation of property, plant and equipment		1,987	2,826
Amortisation of intangible assets – other		11,540	10,462
Amortisation of intangible assets – acquired intangibles		20,921	20,921
Share based payments		6,138	5,695
Exceptional costs		90	102
Adjusted EBITDA		67,130	65,258

 

Adjusted earnings per share (“EPS”)

 

Adjusted earnings per share (“EPS”) calculations allow for the tax adjusted acquisition costs and share related transactions together with amortisation on acquired intangibles via business combinations. See Note 7 for the calculation.

 

Operating Cash Conversion

 

Operating Cash Conversion is calculated as cash generated from operations (as per Note 11), adjusted to exclude cash payments for exceptional items and movements in cash held on behalf of customers, divided by adjusted EBITDA.

 

		2026	2025
		$’000	$’000
Cash generated from operations (Note 11)		55,435	69,595
Total exceptional items		90	102
Movement in amounts held on behalf of customers (Note 11)		10,413	(8,046)
Accrued exceptional items at the start of the year paid in the current year		102	-
Accrued exceptional items at the end of the year		-	(102)
Cash generated from operations before exceptional items		66,040	61,549
Adjusted EBITDA		67,130	65,258
Operating Cash Conversion		98.4%	94.3%

 

 

Adjusted PBT

 

Adjusted PBT refers to profit before tax adjusted for exceptional items and amortisation of acquired intangibles.

 

		2026	2025
		$’000	$’000
Profit before taxation		25,760	23,979
Amortisation of intangible assets – acquired intangibles		20,921	20,921
Exceptional items		90	102
Adjusted PBT		46,771	45,002

 

Cash less bank debt

 

Cash less bank debt refers to net balance of short term bank debt, long term bank debt and cash and cash equivalents.

 

		2026	2025
		$’000	$’000
Cash and cash equivalents		54,816	55,921
Bank debt (Note 12)		(43,495)	(27,740)
Cash less bank debt		11,321	28,181

 

 

Total Sales

 

Total Sales refer to the total value of contracts signed in the year, consisting of New Sales and Renewals.

 

New Sales

 

New Sales refer to the total value of contracts with new customers or new products to existing customers at some time in their underlying contract.

 

Annual Recurring Revenue

 

Annual Recurring Revenue is the annual value of subscription license and related recurring revenues as at 30 June 2026 that are subject to underlying contracts and where revenue is being recognised at the reporting date.

 

Net Revenue Retention

 

Net Revenue Retention is the percentage of revenue retained from existing customers over the measurement period, taking into account both churn and expansion sales.

 

Revenue Growth

 

Revenue Growth is the increase in Revenue in the current year compared to the prior year expressed as a percentage of the previous year Revenue.

 

 

This Statement may contain forward-looking statements. Any forward-looking statement has been made by the directors in good faith based on the information available to them up to the time of approval of this Statement and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. To the extent that this Statement contains any statement dealing with any time after the date of its preparation, such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur and therefore the facts stated and views expressed may change. Craneware undertakes no obligation to update these forward-looking statements.