23rd Jan 2020 12:39
(Alliance News) - Craneware PLC said Thursday it expects to report flat revenue despite increased new sales, as customer renewals by dollar value decreased.
Shares in the Edinburgh-headquartered healthcare software firm were trading 12% lower in London at 2,065.00 pence each on Thursday.
The company said it expects to report revenue for the six months ended December 31 in line with management expectations, at "similar levels" to the same period a year ago, which was USD35.8 million.
Adjusted earnings before interest, tax, depreciation and amortization expected to rise 10% compared to USD11.6 million a year ago.
Craneware said new sales performance was 30% higher compared to the same period a year ago, driven by the increased numbers of contracts, and the contract delayed from the second half.
The company said that actual number of hospital renewing their contracts during the period is "significantly above" the year before.
"However, our KPI "customer renewals by dollar value" when analyzed for the six month period is 73%, which, while lower than our historic annual range of 85% - 115%, reflects the disproportionate impact the loss of a large customer has when measuring this statistic over a six month period," the company noted.
"The strong sales performance in the period, positive market environment, continued sales momentum and high levels of revenue visibility mean the board expects to meet market expectations for the full year ending June 30, 2020," the company said.
By Loreta Juodagalvyte; [email protected]
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