Craneware plc CRW Trading Update

  Craneware plc (CRW) - Trading Update

RNS Number : 5852G
Craneware plc
02 July 2012
 

                                Craneware plc

                         ("Craneware" or the "Group")

                                       

                     Trading Update and Notice of Results

                                       

2 July  2012 -  Craneware plc  (AIM: CRW.L),  the market  leader in  automated 
revenue integrity solutions for the US healthcare market provides an update on
trading for the year ended 30 June 2012.

 

Trading Update

 

The Group  continues  to  make  positive  progress  with  a  number  of  large 
opportunities identified  at  the time  of  the interim  results,  however  no 
further large deals have closed in the financial year. Consequently the  Board 
expects to report revenue for  the year in the  region of $41m (FY11:  $38.1m) 
and adjusted EBITDA* approximately  15% higher than  the previous year  (FY11: 
$10.1m).This is below current consensus of market expectations for the year.

 

As announced at the time of  the interim results, the Group's performance  has 
been impacted  by  an unexpectedly  high  percentage of  healthcare  providers 
focusing on Electronic Health Records.  As a result, sales cycles extended for
all the Group's products  in the first half  of the year.  However,  increased 
month on month  activity and  sales levels  in the  second half  of this  year 
support the  Board's expectation  that sales  cycles are  returning to  normal 
lengths.

 

Medicare Recovery Auditors  continue to add  pressure on all  US hospitals  as 
overpayments being recovered from hospitals increase quarter on quarter.  As a
result, the  Board believes  hospitals  will continue  to refocus  on  Revenue 
Integrity Solutions to rectify the underlying causes of the Medicare  Recovery 
Auditors' findings  as  well as  to  provide  a strong  underlying  return  on 
invested capital.

 

Keith Neilson, CEO of Craneware plc  commented "This has been a mixed  trading 
year for the Group; however  we are in a stronger  position than we have  ever 
been.  Our sales and opportunity pipeline  continues to build, supported by  a 
market that is refocusing on the  problems our products can help solve.   This 
combined with the acknowledged  quality of our product  suite and our  balance 
sheet strength, means we are well placed to help our customers deal with their
increasing fiscal and regulatory pressures and  as a result we continue to  be 
confident in the future growth of the Group."

 

Notice of Results

 

Craneware will be  announcing its preliminary  results for the  year ended  30 
June 2012 on Tuesday 4 September 2012.

 

*adjusted EBITDA is profit before share based payments, depreciation,
amortization and acquisition related costs. 

 

 

For further information, please contact:

 

Craneware plc       Peel Hunt           Newgate Threadneedle
+44 (0)131 550 3100 +44 (0)20 7418 8900 +44 (0)20 7653 9850
Keith Neilson, CEO  Dan Webster         Caroline Evans-Jones
Craig Preston, CFO  Richard Kauffer     Fiona Conroy

 

 

About Craneware

 

Founded in  1999,  Craneware  has headquarters  in  Edinburgh,  Scotland  with 
offices in Atlanta,   Arizona, Massachusetts and Tennessee employing over  220 
staff. Craneware is the leader  in automated revenue integrity solutions  that 
improve  financial  performance  for  healthcare  organisations.   Craneware's 
market-driven, SaaS solutions  help hospitals and  other healthcare  providers 
more effectively price,  charge, code  and retain earned  revenue for  patient 
care  services   and  supplies.   This  optimises   reimbursement,   increases 
operational efficiency  and  minimises  compliance risk.  By  partnering  with 
Craneware, clients achieve  the visibility required  to identify, address  and 
prevent  revenue   leakage.   To   learn   more,   visit   craneware.com   and 
stoptheleakage.com

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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TSTKMGGNGMFGZZZ -0- Jul/02/2012 06:00 GMT