Craneware ends its financial year strongly

17th Jul 2023 16:27

(Sharecast News) - Healthcare service provider Craneware reported a positive full year of trading in an update on Monday, with a 5% increase in revenue to around $174m, positioning it at the upper end of market expectations.

The AIM-traded company said the growth also led to a 5% improvement in adjusted EBITDA, surpassing $54m, with an EBITDA margin of 31%, consistent with the prior financial year.

It put its strong financial performance down to healthy software revenue and its ability to maintain high customer retention rates.

As a result, Craneware said it saw growth in annual recurring revenue (ARR), which reached $169m in the second half, compared to the $166.4m reported at the end of December 2022.

Craneware said it recorded an operating cash balance of $46.9m at year-end on 30 June, compared to $47.2m a year earlier, as it reduced its total bank debt to $83m from $111.6m.

The firm said its approach to debt reduction resulted in a favourable net debt-to-EBITDA ratio of 0.67x, compared to 1.24x for 2022.

Craneware also noted that it had extended its share buyback programme for an additional three months, under the same terms as previously announced.

Looking ahead, Craneware said it had started the new financial year on a positive footing.

It said its strong sales performance in the final quarter of the 2023 financial year, coupled with increasing sales momentum, had provided it with incremental revenues and a promising outlook.

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

"It is particularly encouraging to see the improving prospects across the US healthcare landscape in recent months.

"We are seeing an increasing number of opportunities enter our sales pipeline, which has been reflected in a positive start to the current financial year."

Neilson said the company was confident in the "demonstrable value" its solutions bring to the US healthcare market.

"Supported by a strong balance sheet, high levels of revenue visibility and improving market backdrop, we are well positioned to steadily build on the healthy performance delivered this year."

Craneware said it would announce its results for the year ended 30 June on 5 September.

At 1600 BST, shares in Craneware were up 3.42% at 1,510p.

Reporting by Josh White for Sharecast.com.