Craneware plc Trading Update (6501M)
22 January 2016 - 6:00PM
UK Regulatory
TIDMCRW
RNS Number : 6501M
Craneware plc
22 January 2016
Craneware plc
("Craneware", "the Group" or the "Company")
Trading Update
22 January 2016 - Craneware (AIM: CRW.L), the market leader in
Value Cycle solutions for the US healthcare market, provides an
update on trading for the six months ended 31 December 2015.
The Group is pleased to announce it has continued to perform
strongly in the first half of the financial year. Ongoing sales
success has delivered an increase of 15% in the value of 'new
sales' contracts signed in the six month period ended 31 December
2015 compared to the same period last year and renewals by dollar
value in the period have continued at over 100%. In accordance with
the Company's revenue recognition policy the majority of revenue
resulting from these sales will be recognised over future periods,
adding to the Group's long term visibility of revenue under
contract.
As a result, the Group expects to report an increase of over 10%
in adjusted EBITDA for the six months ended 31 December 2015 and a
7% increase in recognised revenue, compared with the same period
last year.
High levels of cash generation in the period have resulted in
cash reserves of $45m (H115:$41.8m). In addition, the Group has
secured a funding facility from the Bank of Scotland of up to $50m.
This will be available to the Group as it continues to investigate
strategic opportunities to further expand its Value Cycle
solution.
With growth in the period in line with management's
expectations, high levels of cash generation and the continued
sales momentum, the Board is confident in meeting market
expectations for the full year.
The Company will announce results for the six months ended 31
December 2015 on 8 March 2016.
Keith Neilson, CEO of Craneware plc commented, "We are seeing
the initial success of the 'Value Cycle', our vision for the
process and culture by which US healthcare providers pursue quality
patient outcomes and optimal financial performance, in our
continued strong sales performance.
The Group's strong financial position allows us to evaluate our
options as we look to enhance and add solutions which support our
customers in the new Value-based reimbursement environment.
These factors combined with revenue recognition from contracted
sales made in prior periods, gives management confidence in its
ability to deliver increasing stakeholder value through this year
and in the future."
For further information, please contact:
Craneware plc Peel Hunt Alma
+44 (0)131 550 +44 (0)20 7418 +44 (0)208 004
3100 8900 4218
Keith Neilson, Dan Webster Caroline Forde
CEO
Craig Preston, Richard Kauffer Hilary Buchanan
CFO
About Craneware
Craneware is the leader in automated value cycle solutions that
help US provider organisations discover, convert and optimise
assets to achieve best clinical outcomes and financial performance.
Founded in 1999, Craneware has headquarters in Edinburgh, Scotland
with offices in Atlanta, Boston and Phoenix employing over 200
staff. Craneware's market-driven, SaaS solutions normalise
disparate data sets, bringing in up-to-date regulatory and
financial compliance data to deliver value at the points where
clinical and operational data transform into financial
transactions, creating actionable insights that enable informed
tactical and strategic decisions. To learn more, visit
craneware.com and thevaluecycle.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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