Craneware full-year revenue set to top expectations

US healthcare management and support specialist Craneware reported a strong full-year sales performance in an update on Thursday, driven by ongoing investment in the Trisus platform and successful partner programmes, resulting in significant returns for its US healthcare provider customers.

The AIM-traded firm said it expected revenue to exceed $188m for the 12 months ended 30 June, surpassing the upper end of current market expectations and marking an 8% increase over the prior year.

It also anticipated delivering an adjusted EBITDA of at least $58m, a 6% increase from 2023’s $54.9m, maintaining an above-30% EBITDA margin.

The company said it saw growth in annual recurring revenue (ARR), reaching $172m as of 30 June, up from $169m the previous year.

That growth was expected to continue as more sales and partner successes converted to ARR.

Craneware said its strong cash generation enabled continued investment in its future while also significantly reducing its total bank debt to $35.4m, a $40m reduction beyond normal scheduled repayments from 2023’s $83m.

It said it returned $12.8m to shareholders through dividends, up from $12.1m in the 2023 financial year, and completed $3.3m in share purchases via its share buyback programme and the employee benefit trust.

Additionally, Craneware said it retained healthy cash reserves of $34.6m as of 30 June, down from $78.5m a year earlier.

Looking ahead, the firm said its strong sales performance underscored the robustness of its Trisus platform, increasing partner success, and its unique market position.

The company said its range of solutions and new market opportunities, accelerated innovation, and exploration of AI-based applications - bolstered by a recently-announced alliance with Microsoft - positioned it to provide valuable insights to its customers.

“The drive for better value in healthcare continues to dominate strategic priorities within the US healthcare market,” said chief executive officer Keith Neilson.

“Our positive financial results reflect the demonstrable impact the Craneware Group can make, in helping our customers meet these priorities.

“The exciting growth and expansion opportunities that our new alliance with Microsoft brings to the group, combined with our continued investment in the Trisus platform, the considerable data assets we maintain, and our independence within the US healthcare market mean we are uniquely placed to support all US hospitals.”

Craneware said it would announce its results for the year ended 30 June on 3 September.

At 1330 BST, shares in Craneware were up 1.41% at 2,444p.

Reporting by Josh White for Sharecast.com.