Edinburgh-based Craneware plc, a provider of software for the US healthcare market, said it expects revenue for the year to exceed $188 million, which is above the upper end of current market expectations and an 8% increase over the prior year.
In a trading update for the year ended June 30, 2024, Craneware said it also expects to deliver an adjusted EBITDA of at least $58 million, a 6% increase over the prior year and towards the top end of market expectations.
“The board is pleased to announce a positive year for the group,” said Craneware.
“The ongoing investment in the Trisus platform has delivered a good sales performance in the year and, combined with our partner programs, we have delivered significant returns to the group’s US healthcare provider customer base …
“This healthy sales performance and continued high levels of customer retention have delivered growth in Annual Recurring Revenue (ARR) to $172m (30 June 2023: $169m), with additional growth expected as more of the sales and partner success convert to ARR.”
Craneware said it reduced its total bank debt to $35.4 million (FY23: $83m), a further $40m above its normal scheduled repayments.
The Edinburgh firm said it returned $12.8 million to shareholders (FY23: $12.1m) by way of dividends and completed $3.3 million of share purchases through a share buyback and purchase of shares by the Employee Benefit Trust.
In its outlook, Craneware said: “The strong sales performance during the year demonstrates the strength of the Trisus platform, increasing partner success and the unique position the group holds in its market.
“The breadth of solutions the Craneware Group can provide though its Trisus platform, combined with the new market opportunities, accelerated innovation and exploration of new AI-based applications that will result from the recently announced alliance with Microsoft, give the board confidence in the Group’s ability to provide the insights its customers need to deliver greater value healthcare to their communities.
“The Group’s balance sheet strength, high levels of ARR and returns generated for our customers, leave the group well positioned for FY25 and beyond.”
Craneware CEO Keith Neilson said: “The drive for better value in healthcare continues to dominate strategic priorities within the US healthcare market.
“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.
“Supported by a strong balance sheet, high levels of revenue visibility and the partnerships and alliances we are developing, we are confident this year’s healthy performance is evidence of the expanded and long-term opportunities that are ahead of us.”