Business
FY22 Trading Update and Notice of Results
FY22 Trading Update and Notice of Results.
About this update from Craneware Plc
[{"type":"text","content":"\n \n \n \n Craneware plc\n \n \n \n \n \n \n (\"Craneware\", the \"Craneware Group\", the \"Company\" or the \"Group\")\n \n \n \n \n \n \n FY22 Trading Update and Notice of Results\n \n \n \n \n \n \n \n \n \n 26 July 2022\n \n -\n Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, today provides\n an update on trading for the year ended 30 June 2022 (FY22).\n \n \n \n \n \n Trading Update\n \n \n \n \n \n The Company is pleased to announce this update for the enlarged Craneware Group, following the acquisition of Sentry Data Systems Inc (\"Sentry\") on 12 July 2021. Group Headline Revenues in the period have increased 119% to approximately $165.5m with an adjusted EBITDA increase of 85% to over $50m. The results include an approximate 11-month contribution from Sentry and are in line with management's expectations2.\n \n \n \n \n \n Software revenue performance and customer retention continues to be robust, as demonstrated by the growth in underlying Annual Recurring Revenue1 (\"ARR\") to $170m (31 December 2021: $165m). As reported at the time of the Group's Interim Results, professional services revenues have been affected by the impact of the COVID pandemic on hospital workforce and operations. We anticipate this situation normalising in the near term.\n \n \n \n \n \n As at 30 June 2022, the Group had strong cash reserves of $47.2m (31 December 2021: Cash of $41.7m) and net debt of $63.1m (31 December 2021: net debt $72.9m) representing circa 1.25 times reported adjusted EBITDA.\n \n \n \n \n \n This balance sheet strength, combined with our high levels of ARR and the potential for an acceleration in professional services revenue, leaves the Group well positioned for FY23 and beyond.\n \n \n \n \n \n Post-Acquisition Integration Update and Margin Accretion\n \n \n \n \n \n The integration of Sentry Data Systems has been completed, the relevant teams have now been combined and the enlarged sales team continues to successfully execute on the significant cross-sale opportunity. As a result, the combined Group adjusted EBITDA margin target of 30% has been achieved ahead of schedule, with the synergies achieved to date and the multi-year SaaS nature of Craneware's contracts mitigating the industry salary inflationary pressures.\...