Craneware plc
Annual Report and Financial Statements
For the year ended 30 June 2021
Togeher, We are
Helping healthcare providers further
their mission through optimal
financial and operational performance
Table of
Contents
Financial and Operational Highlights | 1 | ||||||||
Solutions | 2 | ||||||||
Chairman's Statement | 4 | ||||||||
Strategic Report: Operational and Financial Review | 5 | ||||||||
Strategic Report: Key Performance Indicators and Principal Risks and Uncertainties | 13 | ||||||||
Strategic Report: Section 172 (1) Statement | 18 | ||||||||
Stakeholder Engagement | 22 | ||||||||
Social Responsibility and Sustainability Statement | 27 | ||||||||
Directors, Secretary, Advisors and Subsidiaries | 30 | ||||||||
Board of Directors | 31 | ||||||||
Directors' Report | 33 | ||||||||
Corporate Governance Report | 39 | ||||||||
Remuneration Committee's Report | 48 | ||||||||
Independent Auditors' Report to the members of Craneware plc | 57 | ||||||||
Consolidated Statement of Comprehensive Income | 64 | ||||||||
Statements of Changes in Equity | 65 | ||||||||
Consolidated Balance Sheet | 66 | ||||||||
Company Balance Sheet | 67 | ||||||||
Statements of Cash Flows | 68 | ||||||||
Notes to the Financial Statements | 69 |
Financial and Operational Highlights
Financial
ƒ Revenue increase of 6% to $75.6m (FY20: $71.5m)
ƒ Adjusted EBITDA1 increased 8% to $27.1m (FY20: $25.2m)
ƒ Profit before tax $13.2m (FY20: $19.3m) reflecting one-off exceptional costs associated with acquisition funding
ƒ Basic adjusted EPS1 increased 6% to 69.0 cents (FY20: 65.4 cents) and adjusted diluted EPS increased to 68.1 cents (FY20: 64.4 cents)
ƒ Basic EPS 48.1 cents (FY20: 62.8 cents) and diluted EPS 47.5 cents (FY20: 61.9 cents)
ƒ Three Year Total Visible Revenue2 (including Sentry contribution from 13th July 2021 onwards) of $471.2m (FY20 same 3 year period: $196.2m)
ƒ Strong operating cash conversion1 at 99% of Adjusted EBITDA (FY20: 92%)
ƒ Cash at year-end of $235.6m (FY20: $47.9m) after raising $187.3m (net) via a share placing and prior to completion of the Sentry acquisition
ƒ Proposed final dividend increase to 15.5p per share (21.47 cents) (FY20: 15.0p, 18.45 cents) giving a total dividend for the year of 27.5p per share (38.10 cents) (FY20: 26.5p, 32.60 cents) up 4%
- Certain financial measures are not determined under IFRS and are alternative performance measures as described in Note 26 of the financial statements
- Refer to the Financial Review section of the Strategic Report for further details
Operational
ƒ Total Sales1 for the year increased 19% to $78.1m (FY20: $65.4m)
ƒ New Sales1 for the year increased 40% to $42.4m (FY20: $30.4m)
ƒ Sales of Trisus Enterprise Value Platform products represented 17% of New Sales in the year (FY20: 14%)
ƒ Acceleration of migration of customers to the Trisus platform, with the Trisus user base increasing to over 900 customers (FY20: 200 customers)
ƒ Continued investment in R&D and innovation to capitalise on growing market opportunity
ƒ The acquisition of Sentry Data Systems, Inc. was completed following the year end, significantly expanding Craneware's scale, offering and opportunity
Quick Facts - Financial
$75.6m
Revenue
$27.1m
Adjusted EBITDA1
$13.2m
Profit
69.0¢
Adjusted EPS1
$235.6m
Cash
15.5p
Final Dividend
80 | 71.4 | 71.5 | 75.6 | ||
70 | 67.1 | ||||
60 | 57.8 | ||||
50 | |||||
40 | |||||
30 | |||||
20 | |||||
10 | |||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 |
25.2 | 27.1 | ||||
24.0 | |||||
25 | |||||
21.6 | |||||
20 | 18.0 | ||||
15 | |||||
10 | |||||
5 | |||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 |
70 | 69.0 | ||||
63.3 | 65.4 | ||||
60.2 | |||||
60 | |||||
51.4 | |||||
50 | |||||
40 | |||||
30 | |||||
20 | |||||
10 | |||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 |
Craneware plc
Annual Report 2021 1
Craneware Solutions
Chargemaster Toolkit®
Automated SaaS chargemaster management solutions for capturing optimal legitimate reimbursement for providers, while mitigating compliance risk. Chargemaster Toolkit is customisable for any organisation, from small community providers to large healthcare networks, and addresses the challenges that enterprise chargemaster data presents to hospitals by enabling all related chargemaster data to be viewed in one place.
Physician Revenue Toolkit® | ||
Trisus® Supply | SaaS solutions for | |
managing physician | ||
Utilizes foundational data | group KPIs, charges, | |
codes, RVUs, fee | ||
from the item master, OR | schedules, and related | |
File, purchase history, and | information | |
chargemaster to identify | ||
data gaps between the | ||
systems, ensuring every | ||
reimbursable supply, | ||
implant, and device | ||
is billed. | ||
Reference Plus™
SaaS solution for providers with less than $44 million in operating expenses to perform chargemaster analysis, and efficiently optimise revenue, charge compliance and coding integrity.
>_
Integration for Chargemaster Management
Software that automatically uploads chargemaster changes to the patient billing system for accurate billing.
Improves charge capture, pricing and cost management, while simplifying the process for ensuring drug coding and billing units are complete and compliant, and establishing and maintaining a connection between a provider's pharmaceutical purchases and billing.
Pharmacy ChargeLink®
Charge Capture
& Pricing
SaaS solution that simplifies the price modelling process, creating a repeatable, well-documented method to establish transparent, defensible and competitive pricing
Trisus Pricing Analyzer™
Web-based and mobile-friendly application for reducing risk by providing access to reference and regulatory resources.
Online Reference Toolkit®
Patient
Engagement
Web-based,mobile-friendly supplies lookup available in Trisus Supply or stand alone. Trisus Supplies Assistant enables providers to access Craneware's proprietary supply master catalog and quickly and correctly code expensive implants and devices.
Trisus Supplies Assistant
Craneware Value Cycle Solutions span five product families - Patient Engagement, Charge Cap
In addition, hospitals of all sizes and types rely on Craneware's Customer Success Management a
Craneware plc
2 Annual Report 2021
Solutions for healthcare providers to optimise financial and operational performance.
InSight Medical Necessity®
A SaaS solution that provides medical necessity validation for all major US payors and Advance Beneficiary Notice (ABN) creation. The software helps reduce accounts-receivable days by preventing medical necessity denials, and facilitates payment communication with patients.
Trisus® Claims Informatics
Software built on Craneware's Trisus platform that automates claim and coding reviews to identify missed charges, billing errors, and categorise areas of risk to help ensure that all legitimate revenue is captured.
Trisus® Healthcare Intelligence | |||||
A cost analytics and | |||||
InSight Audit® | resource efficiency | ||||
A comprehensive, | platform that unites | ||||
cost and operational | |||||
web-based audit | information across the | ||||
management | provider organisation, | ||||
application that | delivering revenue, | ||||
empowers healthcare | cost, and operational | ||||
organisations to manage | information for each | ||||
government and | patient encounter | ||||
commercial audits from | |||||
one central location. | |||||
Claims
Analytics
An easy, automated application for hospitals to meet the 2021 CMS pricing transparency requirements for posting both standard charges and shoppable services online. Analytics on patient searches for shoppable services are provided back to hospitals to ensure ongoing, proactive pricing strategies.
Trisus Pricing Transparency
Revenue Recovery | Cost & Margin |
& Retention | Analytics |
Analyses, tracks, | |
trends and reports | |
on denial data, | |
providing workflow | Craneware has the |
for expediting repair | |
experienced staff needed | |
and resubmission of | |
to review denials, write | |
denied claims. | |
successful appeals and | |
InSight Denials® | overturn improper |
denials. | |
Appeals Service |
Customer Success
Management
Our consultants provide onsite staffing and expertise to help hospitals achieve their financial goals. Customer Success Managers design future state operations, develop policies and procedures, train staff on operational tasks, and measure and report on success metrics.
Customer Success
Management and Consulting
Services
>_
pture & Pricing, Claims Analytics, Revenue Recovery & Retention, and Cost & Margin Analytics. and other Professional Services to help deliver results that lead to improved financial outcomes.
Craneware plc
Annual Report 2021 3
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