Business
Trading Update and Significant Contract Win
Trading Update and Significant Contract Win.
About this update from Craneware Plc
[{"type":"text","content":"\n \nRNS Number : 0806U Craneware plc 10 July 2018 \n\nCraneware plc\n(\"Craneware\", \"the Group\" or the \"Company\")\n \nTrading Update and Significant Contract Win\n \n10 July 2018 - Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, provides an update on trading for the year ended 30 June 2018. \n \nThe Group is pleased to announce continued outstanding performance, as it executes on its growth strategy. There has been strong underlying new sales growth that increased by approximately 100%. This includes a further significant new contract signed at the end of the year. This contract with a large healthcare provider network ('the Network') in the Eastern US is for the Company's Pharmacy ChargeLink® solution. Further details on the contract are provided below. \n \nRenewals by dollar value have continued at over 100% in the period. In accordance with the Company's revenue recognition policy, the majority of the revenue resulting from both new and renewal sales successes will be recognised over future periods, adding significantly to the acceleration of the Group's long term visibility of revenue under contract.\n \nIn addition to this record sales performance, the Group expects to report increases of approximately 16% in revenue and 20% in adjusted EBITDA for the year ended 30 June 2018, extending the run of organic double digit growth delivered in prior years. \n \nHaving returned $15m to shareholders and invested a further $4m in the Employee Benefit Trust during the year, the Group's cash conversion has resulted in the cash balances returning to similar levels to those seen at the end of FY17 (FY17: $53m).\n \nFurther Significant Contract Win\nCraneware has signed a significant new contract, with a large hospital network in the Eastern US, for its Pharmacy ChargeLink® solution. From October 2018, Craneware's solution will be rolled out to the 12 facilities across the Network. This contract is expected to deliver in excess of $6m of revenue over its initial five year term. As per the ...