Craneware (CRW) – whose software helps US healthcare organisations to price, charge and retain revenues – saw its market value take a dive back in June, when it warned that the timing and quantity of sales closed in the second half had been lower than expected. This was due to the market processing three new products launched on the group’s cloud-based Trisus platform.
Full-year results revealed that Craneware signed $33.3m (£27.7m) of new total contracted value – down considerably from $71.3m in FY2018 – although a blend of sales from new and existing customers in the ratio of 45:55 provides some reassurance given the level of new business. Revenues sat in line with revised guidance, albeit significantly below analysts’ earlier estimates. Adjusted cash profits rose by 11 per cent to $24m – just ahead of the group’s prediction of around 10 per cent. The shares ticked up in response.
Management explained that the speed with which it launched its most recent three Trisus products had resulted in some short-term “indigestion”, affecting both its sales team and its customers. It is “systematically working through” the issue.
Peel Hunt expects adjusted pre-tax profits of $24.5m and EPS of 65.6¢ for FY2020, up from $23.7m and 62¢ in FY2019.
| CRANEWARE (CRW) | ||||
| ORD PRICE: | 1,925p | MARKET VALUE: | £514m | |
| TOUCH: | 1,850-2,000p | 12-MONTH HIGH: | 3,635p | LOW: 1,715p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 41 | |
| NET ASSET VALUE: | 224¢ | NET CASH: | $47.6m | |
| Year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2015 | 44.8 | 12.5 | 35.0 | 14.0 |
| 2016 | 49.8 | 13.9 | 39.4 | 16.5 |
| 2017 | 57.8 | 16.9 | 50.2 | 20.0 |
| 2018 | 67.1 | 18.9 | 59.0 | 24.0 |
| 2019 | 71.4 | 18.3 | 56.1 | 26.0 |
| % change | +6 | -3 | -5 | +8 |
| Ex-div: | 28 Nov | |||
| Payment: | 19 Dec | |||
| *Includes intangible assets of $30.4m, or 114¢ a share £1 = $1.20 | ||||
