Craneware PLC, a leader in Value Cycle solutions for the US healthcare market, has released a trading update for the six months ended 31 December 2023. The company experienced an 8% revenue growth to approximately $91 million, with adjusted EBITDA also increasing by 8% to around $27.5 million, in line with the Board's expectations. The Annual Recurring Revenue (ARR) grew by approximately 3% to about $171.4 million, while maintaining a Net Revenue Retention of 100%.
The company has utilized its cash reserves to reduce debt and interest costs, resulting in lower interest rate charges. Despite increased UK corporation tax, share-based payments, and amortization, the Adjusted EPS has returned to growth of approximately 3%, reversing the reduction experienced in the prior year. Craneware maintains a strong balance sheet, with total bank debt reduced to $59.2 million and healthy total cash reserves of $63.9 million.
The Board has decided to extend the share buyback program for a further three months to 17 April 2024, under the same terms as previously announced. Craneware's investment in the Trisus platform, along with the recent launch of its optimization suites and innovative new partnerships, positions the company strongly to benefit from the increasing confidence in its market.
The company's CEO, Keith Neilson, expressed confidence in the accelerating growth momentum and the return to double-digit growth rates in the near term. Craneware will announce results for the six months ended 31 December 2023 on 4 March 2024.
Neilson highlighted the importance of digitalization in meeting the challenges faced by US hospitals and healthcare providers, emphasizing the company's considerable data assets and expanded offering to derive meaningful insights for improving operational efficiency and financial strength.
Craneware's Trisus platform, investments in the move to the Cloud, and strategic positioning make it well-prepared to be the partner US Hospitals and pharmacies need, both now and in the future. The company looks forward with confidence, given the returning confidence in the US healthcare market and the positive impact on its financial results.