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Highlights

  • Craneware’s H1FY24 revenue increased 7.7% to USD 91.21 million, driven by higher sales
  • Customer retention remained high at over 90%, bolstering revenue growth
  • Adjusted EBITDA rose 8% to USD 27.5 million
  • Revenue for FY24 is expected to exceed USD 188 million

Craneware PLC (LSE: CRW), a UK-based company, develops, licenses, and supports software for the U.S. healthcare sector. It is a member of the FTSE AIM 100 Index.

In the first half of FY24, the company's revenue reached USD 91.21 million, marking a 7.7% increase compared to the previous corresponding period. This growth was driven by strong sales to both existing and new customers, reflecting favorable market conditions. Customer retention remained robust at over 90%, and the partner program, bolstered by the Trisus platform, contributed significantly to revenue expansion, with additional partners under evaluation.

Profit before tax saw a notable rise of 13.5%, reaching USD 5.92 million. Additionally, adjusted EBITDA increased by 8%, climbing to USD 27.5 million from USD 25.5 million in H1 FY23.

Recent Business Update

In the company's FY24 trading update and notice of results, the board announced a successful year for the Group. Revenue is estimated to surpass USD 188 million, reflecting an 8% increase from the previous year. Adjusted EBITDA is expected to reach at least USD 58 million, up 6%, while maintaining a margin above 30%.

Ongoing investments in the Trisus platform and robust customer retention have propelled annual recurring revenue to USD 172 million, with expectations for continued growth.

Company Outlook

According to the company, Craneware is strategically positioned to lead the digitalization of U.S. healthcare by utilizing its Trisus platform and extensive patient data. With a robust market environment, positive reception to new products and partnerships, and substantial recurring revenue, Craneware is confident in achieving its annual targets and anticipates potential for near-term growth.

Top 10 Shareholders

The top 10 shareholders of Craneware collectively own approximately 56.77% of the company’s shares. Liontrust Investment Partners LLP holds the largest stake with about 10.98%, followed by Neilson (Keith) Limited, which holds around 9.82%, as illustrated in the chart below.

Stock Performance

The share price of Craneware has declined by around 11.91% in the last one month whereas, it has increased by around 25.83% in the past nine months. The stock's 52-week low is GBX 1,340.00, and its 52-week high is GBX 2,509.20. It is currently trading above the average of its 52-week high-low.

 

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 02 Sep 2024. The reference data in this report has been partly sourced from EODHD/Others.