AI Terminal
CRANEWARE PLC
Earnings Release • Sep 15, 2025
7581_10-k_2025-09-15_5cf67867-a21d-4e9d-bb98-d568716527b2.html
Earnings Release
Open in ViewerOpens in native device viewer
National Storage Mechanism | Additional information 
RNS Number : 3063Z
Craneware plc
15 September 2025
Craneware plc
("Craneware" or the "Company")
FY25 Final Results
Continued sales momentum and accelerated growth rates, reflecting operational focus and strategic position at the heart of the US healthcare market
15 September 2025 - Craneware (AIM: CRW.L), a leader in healthcare financial performance solutions , announces its audited results for the year ended 30 June 2025 ("FY25").
Financial Highlights - Strong performance across all metrics
| · | Revenue increased 9% to $205.7m (FY24: $189.3m) |
| · | Annual Recurring Revenue2 grew 7% to $184.0m (FY24: $172.0m), with an increase in associated Net Revenue Retention3 to 107% (FY24: 98%) |
| · | Adjusted EBITDA1 increased 12% to $65.3m (FY24: $58.3m), representing an increased margin of 32% (FY24: 31%) |
| · | Substantial growth in Statutory Profit before tax, up 52% to $24.0m (FY24: $15.7m), benefitting from the reduction in finance costs driven by the Group's treasury management policy |
| · | Adjusted basic EPS1 increased 22.5% to 116.1 cents (FY24: 94.8 cents) and adjusted diluted EPS increased 21.6% to 114.2 cents (FY24: 93.9 cents) |
| · | Significant increase in both Basic EPS, up 68% to 56.2 cents (FY24: 33.5 cents) and diluted EPS, up 66% to 55.2 cents (FY24: 33.2 cents) |
| · | Strong Operating Cash Conversion4 at 94% of Adjusted EBITDA (FY24: 90%) |
| · | Total Cash and cash equivalents strengthened to $55.9m (FY24: $34.6m) |
| · | Further reduction in Total Bank Debt in the year to $27.7m (FY24: $35.4m) |
| · | Dividend for year up 10%. Proposed final dividend of 18.5p per share (FY24: 16.0p) giving a total dividend for the year of 32.0p per share (FY24: 29.0p) |
| · | Post period end, new unsecured Revolving Credit Facility ("RCF") of $100m agreed on improved terms, for a further three years with an option to extend for two further one-year terms, and with an additional $100m accordion facility |
1 Certain financial measures are not determined under IFRS and are alternative performance measures as described in Note 15
2 Annual Recurring Revenue "ARR" includes the annual value of subscription license and related recurring revenues as at 30 June 2025 that are subject to underlying contracts and where revenue is being recognised at the reporting date
3 Net Revenue Retention is the percentage of revenue retained from existing customers over the measurement period, taking into account both churn and expansion sales
4 Operating Cash Conversion is cash generated from operations (as per Note 15), adjusted to exclude cash payments for exceptional costs and movements in cash held on behalf of customers, divided by adjusted EBITDA
5 When we refer to 'Craneware', or 'The Craneware Group' or 'Group' in the annual report we mean the group of companies having Craneware plc as its parent and therefore these words are used interchangeably
Operational Highlights
| · | Continued sales momentum, delivering another year of sequential sales increase, driven by growing levels of expansion sales to existing customers |
| · | Strong customer retention of over 90%, testament to the value Craneware delivers and its position as a trusted strategic partner |
| · | All customer-facing teams now integrated across all offerings, providing a seamless experience for our customers and the operational structure to support the next stage of customer and partner growth |
| · | Trisus Platform revenues now transitioning to recurring revenues as anticipated, adding to the Group's ARR |
| · | Trisus® Chargemaster received Microsoft 'AI for Healthcare' certification and was once again awarded 'Best in KLAS', reinforcing Craneware's market leadership in revenue cycle management and demonstrating the success of our ongoing investment in R&D |
| · | Microsoft alliance progressing well, with 13 Trisus solutions now available on the Azure Marketplace, the first customer contracts secured via the Marketplace and joint marketing efforts commenced |
| · | Launch of Trisus® Assist within Trisus® Chargemaster, an AI powered personal assistant, designed to revolutionise how healthcare finance, administration and operational teams research and navigate complex healthcare operational issues and generate greater efficiencies - now being rolled out across all of Craneware's product sets |
Outlook
| · | Trading in the first months of the new year has started well, which alongside the FY25 ARR and NRR growth provide confidence in continued growth acceleration in FY26 |
| · | Craneware has the proprietary data, expertise and customer base to play a central role in the transformation of the business of US healthcare, and the Board looks to the future with confidence |
Keith Neilson, CEO of Craneware plc, commented,
"FY25 was a proud milestone, not just due to the strength of the financial performance, but for what that growth represents: the tireless efforts by our team in the service of our hospital customers and the communities they serve. The year has seen us deliver on our commitment to increase our growth rate, while maintaining strong profit margins, reducing bank debt, increasing our dividend and providing an admirable return on our customers' investment in the Group's software. We continue to invest in R&D to strengthen our product set, leveraging our proprietary data assets to expand our offerings, launch new AI enabled applications and integrate third-party solutions onto the Trisus platform. Meanwhile, our partnership with Microsoft is proving a success, accelerating sales cycles and driving further innovation.
"Trading in the current year has started well, and with high customer retention rates, market leading offerings, specialist healthcare expertise and a significant proprietary data set, we have strong foundation on which to build. The growth in both ARR and NRR in the year demonstrates the strength of our Annuity SaaS business model, backed by multi-year contracts, providing a basis for growth acceleration in the year to come, and we look to the future with confidence."
For further information, please contact:
| Craneware plc | +44 (0)131 550 3100 |
| Keith Neilson, CEO | |
| Craig Preston, CFO | |
| Alma Strategic Communications | +44 (0)20 3405 0205 |
| Caroline Forde, Kinvara Verdon, Sarah Peters | craneware@ almastrategic.com |
| Peel Hunt (NOMAD and Joint Broker) | +44 (0)20 7418 8900 |
| Neil Patel, Benjamin Cryer, Kate Bannatyne | |
| Investec Bank PLC (Joint Broker) | +44 (0)20 7597 5970 |
| Patrick Robb, Virginia Bull, James Smith | |
| Berenberg (Joint Broker) | +44 (0)20 3207 7800 |
| Mark Whitmore, Richard Andrews, Patrick Dologhan |
About Craneware
For over 25 years, The Craneware Group (AIM:CRW.L) has been a leader in healthcare financial and operational transformation, delivering cutting-edge technologies that drive measurable impact. Our Trisus® cloud ecosystem unifies data, revenue intelligence, margin intelligence, and advanced analytics, enabling healthcare organizations to optimize performance, improve financial sustainability, and drive strategic growth. As a trusted Microsoft partner, we provide future-ready solutions-including the Best in KLAS Trisus Chargemaster-that simplify the complexities of healthcare finance and operations. What sets us apart is our unique combination of deep healthcare expertise and engineering excellence, positioning us as a strategic partner rather than just a technology provider. The Craneware Group empowers healthcare organizations to achieve sustainable financial success while delivering better outcomes for the communities they serve-today and in the future. Together, we are transforming the business of healthcare.
Learn more at www.thecranewaregroup.com
Chair Statement
I am delighted to report on a strong year of trading, in which the strategic developments of recent years have driven accelerating growth rates. The successes the team has achieved over the last five years, against the backdrop of the pandemic, inflation, and macro political and economic uncertainty, should not be underestimated. Two considerable organisations have been successfully combined and growth restored to the acquired business, all offerings transitioned into the Microsoft Azure cloud, new offerings launched, a major alliance with Microsoft secured and the Group has increased EBITDA margins.
Within this fiscal year, even with no abatement in distractions, the team has stayed focused on achieving our strategic objectives and providing outstanding support to our customers. The value being unlocked by the Group's offerings continues to grow - with over $1.5bn returned to customers via our software in this year alone, providing them with vital funds to reinvest in the delivery of care within their communities.
Strong financial results and growing momentum
The year has seen the Group deliver on its commitment to increase its growth rate, while maintaining strong profit margins, reducing bank debt, delivering a double digit increase in dividends and providing an admirable return on our customers' investment in the Group's software. Adjusted EBITDA increased by 12% to over $65m (FY24: $58.3m) at an increased EBITDA margin of 32% (FY24: 31%) delivered by revenue growth of 9% to $205.7m (FY24: $189.3m).
The healthy sales performance, continued high levels of customer retention and transition of increasing elements of revenue into recurring revenue streams, have delivered growth in ARR of 7% to $184m (FY24: $172.0m) and an increase in Net Revenue Retention to 107% (FY24: 98%). The strength of ARR and NRR in the year point to growth acceleration in the year to come.
The Group continues to deliver high levels of operating cash conversion, which have been used to invest in the product portfolio and reduce debt and interest costs, with total bank debt reduced to $27.7m (FY24: $35.4m), whilst retaining healthy total cash reserves of $55.9m (FY24: $34.6m). The Board has proposed a final dividend of 18.5p per share (FY24: 16.0p) giving a total dividend for the year of 32.0p per share (FY24: 29p) up 10%.
The strength of the Group's balance sheet allows the Board to continue to invest organically as well as review any appropriate acquisition opportunities aligned with its growth strategy. To support future growth, since our year end, we have signed a new RCF facility, with four key banking partners, of $100m with a further $100m accordion. This unsecured facility replaces our existing term loan and RCF and has been agreed at lower interest rates and on more favourable terms.
Multifaceted strategy for growth, built on strong foundations
The transformation of The Craneware Group in recent years confirms it occupies a strategic position at the heart of the US healthcare market, providing a strong foundation for continued expansion. With approximately 40% of all US hospitals as customers and many having been so for over two decades, gradually bringing more of their hospitals onto the Trisus platform and taking advantage of an increasing range of Craneware's Trisus offerings as they unlock further returns on their investments. With the Group having renewed its multi-year contracts with the majority of its customers over the last 24 months, this base of Annual Recurring Revenue is incredibly resilient, with no single customer reliance.
The Group aims to reinvest approximately 25% of revenue each year in innovation, as it seeks to unlock further ROI for customers through new offerings, transforming the data that flows through the Trisus platform into insights that enable hospitals to protect revenue and operating margins. One of the latest examples of the importance of innovation is the launch of the "Shelter" programme, based on our 340B data and software, which has seen strong uptake across our extensive customer base this year and has been a major driver of revenue and ARR growth.
US healthcare leaders are now at the start of reviewing their approach to AI, presenting an exciting emerging opportunity for The Craneware Group. AI needs access to data to be powerful. The unique data powering our platform consists of more than 200 million patient encounters which we are combining with the latest LLM technology to provide unique AI enhanced applications. We have the deep healthcare sector expertise, data and proven offerings to be the right people to partner with our customers in capitalising on these emerging technologies.
Rejected Approach
During the second half of the Fiscal Year, the Company received an unsolicited approach with an outline proposal to acquire the company for £26.50 per share. The Board had not entered into formal negotiations with the party, nor had any formal due diligence taken place. In June, we announced this proposal was unanimously rejected by the Board and restated the Board's belief in the future prospects for Craneware. We were very gratified by the shareholder support we received following the conclusion of this approach.
Benefitting society through our Purpose
Our Purpose is to transform the business of healthcare through the profound impact our solutions deliver, enabling our customers to focus their resources on their healthcare priorities and the provision of quality care to their communities.
Craneware maintains high standards of governance, ensuring that our purpose, business model, strategy and Board operations are all focused on delivering long-term value for all stakeholders whilst adhering to ethical business practices. The Group's ESG Committee routinely evaluates our sustainability initiatives and oversaw various projects in the year to support our people and their communities. This is exemplified by our Craneware Cares programme, which sees employees actively participate in charitable giving and community outreach, with the Group contributing significantly to 22 charities in the year. While the Group's impact on the environment is relatively modest given our sector, we are pleased to report the estimated emissions from our usage of cloud services reduced by 27% in FY25, having reconfigured some of our cloud services and data centre arrangements during the year. Additionally, emissions from energy use by our US office premises decreased by about 65%, due to a reduced office footprint implemented in the prior year. Further details of the Group's approach to ESG can be found in the ESG Statement within the Annual Report.
The commitment to social responsibility and delivering a positive contribution to society can be seen in the superb dedication of the team and on behalf of the Board, I would like to express my gratitude to them all for the hard work and passion they bring every day to serving our customers and their communities.
Board Changes
As previously announced, following many years' service on the Board of Directors, Colleen Blye, Senior Independent Director, and Russ Rudish, Non-Executive Director, stepped down from the Board at our 2024 AGM. We are grateful for their significant contributions to Craneware's success. We were delighted to welcome Tamra (Tami) Minnier and Susan Nelson, two experienced senior US healthcare executives, as Non-Executive Directors in November 2024 and January 2025, respectively. Tami currently holds the role of Senior Vice President, Health Services Division, and Chief Quality and Operational Excellence Officer for UPMC, a $27 billion-dollar integrated healthcare delivery and financing system in Pittsburgh, PA and Susan is Executive Vice President and Chief Financial Officer at MedStar Health, an $8.3 billion integrated healthcare system in the Maryland and Washington, D.C. region. Together, they provide exceptional insights into the financial pressures being experienced across our customer base and areas of potential product innovation, to help the Group ease those pressures for customers.
Confident Outlook
Craneware's continued strong sales performance, the strength of its long-term customer relationships, power of its data sets and proven ability to innovate, provides it with an exciting opportunity to sit at the heart of the business transformation of the US healthcare market. With high levels of recurring revenues, strong balance sheet, margins and cash generation, it has the financial strength to do so. The Board is therefore confident in the Group's ability to further its market position and deliver successful outcomes for all stakeholders.
Will Whitehorn
Chair Craneware plc
12 September 2025
Strategic Report
Operational Review
FY25 was a proud milestone, not just due to the strength of the financial performance, but for what that growth represents: the tireless efforts by our team in the service of our hospital customers and the communities they serve. Amid a year of global unrest, political uncertainty, and local disruption, the resilience of our team has been nothing short of inspirational, and we would like to thank them all for that.
This year we have seen our efforts to streamline processes, teams and activities bear fruit, in a tighter, more focused organisation. We have achieved greater consistency in our engagement with customers, increased speed of product development and fostered a strong rapport with the Microsoft team, following the signing of our alliance at the very start of the financial year, and our early adoption of AI.
While we are pleased with the numbers delivered this year, we believe there is much more to come. Our newly created Growth Office has focused on unifying our marketing team with the field sales team to deliver more targeted sales messaging, adding new partners, and capitalising on the alliance with Microsoft. All offering considerable potential for continued growth, on top of our proven ability to expand with existing customers.
Clearly, AI is at the forefront of everyone's minds, and the healthcare industry is no exception. With the high levels of inefficient spend and complexity in healthcare, there are many opportunities for AI to deliver great benefits, if used correctly and implemented with care. For the Group, it brings great opportunity to analyse our data at a far greater pace, accelerate product delivery while increasing our operational efficiency and the quality of our customer interactions yet further. During the year we announced two important milestones in this regard, firstly Trisus® Chargemaster received Microsoft AI for Healthcare certification, and Trisus® Assist, the AI engine powering real-time research and recommendations within our Trisus Chargemaster solution, was made generally available across our user base. These milestones demonstrate the success of our ongoing investment in R&D.
The US healthcare market continues to evolve, presenting interesting opportunities for innovation and partnership, and we are alert to capitalising on these, as they arise. Product development execution continues to be important to capitalise on the strength of our position and data, and an area of considerable focus.
With the large bulk of our extensive customer base having renewed their multi-year contracts in the last two years, our focus is now on delighting them with our service and insights, and ensuring they utilise the full strength of the Trisus platform to increase their return on investment from using the platform. We are proud to note that the hospital groups who are longstanding Craneware customers tend to be those which are the most successful, speaking to our contribution to their financial strength and resilience, so that they can concentrate on their mission.
The growth in ARR and NRR in the year demonstrate the strength of our Annuity SaaS business model, backed by multi-year contracts, providing a basis for growth acceleration in the year to come.
Market Overview
While healthcare providers' operating margins are starting to normalise post-Covid, these providers are now facing increased uncertainty around changing legislation, executive orders and tariffs. Increasing cost pressures, labour constraints, and the rise in AI means healthcare providers are being asked to do more with fewer people and typically have little, or no, margin for error. The ongoing economic challenges being faced both by healthcare providers and their communities mean legislation such as 340B, which makes vital drugs available at lower cost to providers so that they can support financially disadvantaged communities, continues to hold a prominent position on the agenda at both State and Federal level, experiencing bi-partisan support, acknowledging its importance in delivering affordable healthcare. Meanwhile regulations such as the CMS pricing transparency mandates, and evolving federal and state regulations, continue to create reimbursement complexity.
In response to this environment, a recent research report by industry research house, KLAS, found that "leaders are not freezing healthcare IT budgets; they are redrawing them, with 75% of healthcare leaders not anticipating IT cuts. Instead, they are shifting spend to vendor partnerships and tools with fast, measurable ROI. They are prioritising resilience and steady growth over big bets."
Craneware's solutions are uniquely placed to help healthcare leaders navigate these issues, bringing the insights they need to understand the financial pressures being exerted across their organisations and navigate the complexity of changing regulations, while delivering clear and tangible ROI, of greater than 6x.
Trisus combines revenue integrity, cost management and decision enablement functions into a single cloud-based platform. The platform brings together siloed data from the various existing software systems in a hospital or healthcare system, normalises that data and applies proprietary analytics to provide insights to customers, to support informed decision making regarding a hospital's operational effectiveness, in one place.
We provide customers with the ability to build data proven strategies related to revenue, purchasing, pricing, cost, and compliance to mitigate their internal and external challenges, delivering real financial returns and freeing up valuable resources that can be re-invested and re-deployed by the healthcare providers to support the clinical care of their communities and tackle their clinical challenges.
We believe the digitalisation of healthcare and improvement of processes using data insights will provide the successful foundation for greater value in healthcare and enable the transformation of this business in the US.
Growth Strategy - innovation to profoundly impact US healthcare operations, which will drive demand and expand our addressable market.
Historically, our growth was driven through increases in market share and product set penetration (Land & Expand) on our customers' premises. In recent years, we have invested in the development of the Trisus platform; a sophisticated cloud delivered data aggregation platform that supports intelligent software suites, to be used by our customers to identify areas of operational improvement.
This evolution from application vendor to platform provider is the foundation for both our current growth, and central to an enhanced level of expansion, turbocharging our Land & Expand capabilities.
The Trisus platform facilitates frictionless expansion with existing customers and increased speed of product development to accelerate both expansion and land new customer wins. New solutions built on Trisus leverage our proprietary data assets to expand our offerings. Meanwhile the platform enables the integration of third party solutions, benefitting from the scalability of cloud-technology, increasing our total addressable market while reducing the number of vendors with which a hospital has to work.
Over our 26 years in the US healthcare market, we have collected our own unique and extensive data set, which contains the valuable insights that will help generate our products of the future. We have always had a team analysing this data but the growth in AI and machine learning ("ML") means it is now easier and faster to do so, particularly when combined with the large language model training capabilities on our own data, creating unique proprietary new models. Meanwhile, we are also using AI across the organisation for efficiency and productivity gains. As an independent data aggregator we do not sell our data to third parties, instead we monetise this data by delivering long-term value to our customers through the extrapolation of valuable insights that directly benefit them.
Our ongoing data foundational programme, Unity, is utilising advances in AI and ML data processing to increase the interoperability and connectivity of our applications and make the Trisus platform's back-end processes more efficient and effective. The integration of our Revenue Integrity and 340B related software technology stacks has now been completed, via the Oracle Database@Azure service, enabling greater data flow and analysis, in turn supporting further product innovation and allowing insights for our customers in a seamless fashion.
The quality of our offerings can be seen in their ongoing market leadership, with Craneware once again awarded 'Best in KLAS' in February 2025 for our Trisus Chargemaster solution, reinforcing our leadership in revenue cycle management.
Customer base provides strong foundation
Our customer expansion strategy has delivered tangible results, as reflected in our customer metrics. Over the past decade, revenue generated from our top ten customers has increased more than sixfold, driven by utilisation of our solutions across their expanding hospital networks and the adoption of additional offerings. Overall growth across our entire customer base has led to a well-balanced distribution of customer purchase points and size of facility, with the top ten customers accounting for only 30% of total Group revenue. Notably, these leading hospital systems have, on average, maintained their status as Group customers for over twenty years, underscoring the enduring strength and longevity of our client relationships.
Significant growth opportunities remain. Our "white space" product portfolio analysis alone suggests we could increase revenue by nearly eight times across all customers. With our customers' combined operating expenses totalling almost a trillion dollars, this would still represent only a small share of overall hospital operating expenses, with significant further expansion opportunities.
With the majority of our existing customers having again renewed their contracts in the past two years for further multi-year terms, we are in a strong position to continue to grow our engagement with them through delivering outstanding service and compelling ROI.
Positive sales performance - a trusted strategic partner
Growth in ARR
The strong sales performance, continued high levels of customer retention in the year and the transition of a proportion of Trisus Platform revenues associated with the Group's 340B software offerings into recurring revenue streams have delivered growth in Annual Recurring Revenue ("ARR") of 7% to $184m (30 June 2024: $172m) and an increase in Net Revenue Retention to 107% (FY24: 98%). ARR growth is expected to more closely align with revenue growth numbers over time as sales and platform partner success converts to ARR.
We continue to see the opportunity to accelerate ARR growth over the medium term, both as our initial Trisus Platform Partners mature and begin generating demonstrable recurring revenue and we continue to unlock the considerable cross and upsell opportunities within our enlarged customer base. Customer retention for the year exceeded the gold standard of B2B software companies of 80%, with a greater than 90% retention rate across the multiple measures, which is testament to the value Craneware brings to its customer base.
Our ongoing investment in R&D will allow us to unlock further future growth opportunities. The historical investments we have made in the Trisus Platform have allowed us to develop and launch our Trisus Platform programme including working with Platform partners to drive new potentially recurring revenue streams for the Group. Our own product development has enabled the success of our relationship with Microsoft and Trisus Chargemaster receiving the Microsoft AI for Healthcare certification, as well as the launch of Trisus Assist, the AI engine powering real-time research and recommendations.
With the significant opportunity that exists within US Healthcare and our trusted status as an independent partner to US hospitals, we expect the continuing investments we make into our Platform and products will drive significant future returns and further accelerate growth in ARR in the medium term.
Sales mix
Sales momentum continued throughout the year. We have seen another sequential increase in the overall level of annual sales. As expected, we continue to see the majority of these sales coming from our existing customers, as they both expand their use of Trisus and add further hospitals to their networks, bringing "new hospitals" to Craneware and expanding our market presence.
Expansion sales to existing customers represented 98% of our total 'new' sales in the year (FY24: 83%), demonstrating the positive response of our customers to the increased ROI derived from the uptake of our Trisus Platform Partner programme, our additional cloud applications and the packaging of applications and services into our Optimization Suites, with the Business of Pharmacy Optimization Suite continuing to perform particularly well.
Alongside the sales successes already reported in H1, significant H2 Wins included a multi-year 340B and Shelter contract, replacing a competitor at a regional provider; a multi-solution Revenue Integrity win with a large health system, with committed future expansion; a multi-year renewal and expansion with a Teaching System which includes specialist services around the system's EPIC conversion; and a strategic expansion and long-term extension with a large Regional health system, expanding use of the Trisus platform into newly acquired hospitals and contract pharmacies.
Growing opportunity with Trisus Platform programme
The Trisus Platform programme involves leveraging the strength of Craneware's data and platform to generate additional, highly scalable, diverse revenue streams. Through the programme, Craneware is also able to host third party applications on the Trisus platform.
Revenue generated from our Trisus Platform programme is considered non-recurring revenue initially, though we anticipate a large proportion of this to become recurring in time. Customers of the Shelter programme are now being transitioned to a recurring revenue model, adding to the Group's ARR.
Testament to the Group's success in utilising its extensive data sets to deliver additional value to customers is the strong contribution to Trisus Platform revenues from the Group's 340B "Shelter" offering, and while other offerings may grow at different rates, this demonstrates the potential of the programme.
Additional solutions now available on the Trisus Platform include offerings from a data aggregation company that specialises in pharmaceutical rebates and effective pharmacy formulary management, and a further partner in healthcare data intelligence for the pharmacy community, that reduces medication spend for providers.
We have a strong new partner pipeline, including co-development and proof of concepts with existing customers, that provide additional growth opportunities, and will be rigorously assessed prior to launch.
Streamlined organisational structure, to ensure seamless customer experience
As part of our drive to ensure we delight our customers, we have now completed the integration of all customer-facing teams across our product offerings, including Sales, Implementation, Account Management and Customer Success, providing a seamless experience for our customers and the operational structure to support the next stage of customer and partner growth.
Microsoft Alliance presents a growth catalyst
Our strategic partnership with Microsoft, secured at the start of FY25, is continuing to accelerate our innovation and market reach, further validating our leadership in healthcare technology.
Together we have gained further momentum and achieved some key milestones in FY25. All 13 flagship Trisus® solutions are now live on the Microsoft Azure Marketplace, with additional applications scheduled for release shortly. Our first major customer contract via the Marketplace was executed in H1, validating the commercial potential of this channel and the sales have continued with a strong and growing pipeline of mutual opportunities. In addition, we have worked together to launch joint go-to-market initiatives, supported by our designation as a Microsoft Global Partner Solution provider and our signed Azure Consumption Commitment ("MACC") agreement, incorporating major joint customer advocacy events planned for later in the year on the Microsoft campus.
The sales and partnership success is further enhanced by Craneware's market leading innovation and Microsoft's recognition of our capabilities. In March 2025, we introduced Trisus Assist, an AI-powered assistant, which was co-developed with Microsoft and unveiled at HIMSS25 as one of an elite group of global partners invited to join Microsoft and demonstrate our solutions in booth. Trisus Assist accelerates compliance workflows and equips hospital finance teams with fast, context-aware guidance, thus eliminating manual work and improving decision-making. Initially embedded in Trisus Chargemaster, it is now being developed to roll out across our product suite, including our 340B solutions.
We are proud Trisus Chargemaster, incorporating Trisus Assist, has been recognised by Microsoft as Certified Software for Healthcare AI, making it one of the first operational healthcare solutions to achieve this designation, underlining Craneware's leadership in this space.
Our partnership with Microsoft is not just technical, it is strategic. It streamlines procurement for our customers and expands access to Microsoft's cutting-edge innovation via Azure's AI and machine learning capabilities. This accelerates revenue growth, enhances Trisus analytics and predictive insights, scalability and security through Azure's infrastructure.
M&A to accelerate growth
The current market presents interesting opportunities for M&A and we continue to assess the market for aligned companies that will accelerate the Group's growth strategy. In addition to strict financial criteria, the Group maintains its acquisition criteria, of which a target company must satisfy at least one of the following: the addition of relevant data sets; the extension of the customer base; the expansion of expertise; and the addition of applications suitable for the US hospital market.
Investing in our People
We are proud to have a talented and committed team, whose diverse perspectives and aligned purpose drive innovation and excellence. We continually look for ways to invest in our people to nurture talent. This includes regular training programmes and further enhancements to our Career Pathways Resource, which illustrates the possibilities and potential routes to career progression, aligned with our strategic goals. This year, we have had our first colleagues join us through our new graduate recruitment programme, helping the Group to attract and retain the best people.
Financial Review
The Craneware Group has delivered another strong set of results for the year ended 30 June 2025, underscoring the effectiveness of our ongoing platform strategy and continued operational focus. The US Healthcare market is actively seeking out innovation to address the many systemic challenges that are faced in their operations daily, and Craneware continues to consolidate its position as a strategic partner.
As a result, Group revenue increased to $205.7m (FY24: $189.3m), representing 9% growth year-on-year and reflecting our ability to capitalise on these market opportunities while delivering increasing value to our customers.
This revenue growth has contributed to Adjusted EBITDA increasing 12% to $65.3m (FY24: $58.3m) and an increased Adjusted EBITDA margin of 32% (FY24: 31%). This overall performance highlights the continued strategic investments in our people and technology platforms, whilst maintaining good discipline over our cost base.
Our Annuity SaaS business model, combined with our rigorous cash management processes, have ensured the Group remained highly cash generative. We closed the year with bank debt reduced to $27.7m (FY24: $35.4m) and increased cash reserves of $55.9m (FY24: $34.6m). Since the year end, the Group has secured a new Revolving Credit Facility ("RCF") for three years with the option to extend for two further one-year terms. This new unsecured $100m RCF replaces the old term loan and RCF as well as providing for a further $100m accordion facility. Our robust balance sheet combined with this positive liquidity position strengthens our capacity to further invest in our future growth as well as pursue, where appropriate, select acquisitions.
Significant increases in both Basic Earnings per Share, up 68%, to 56.2 cents (FY24: 33.5 cents) and Adjusted Basic Earnings per Share, up 22.5% to 116.1 cents (FY24: 94.8 cents), confirm the benefit of our financial and strategic discipline.
Underlying Business Model and Revenue Mix
Our revenue model is underpinned by multi-year contracts with our hospital customers. These provide customers access to a specified product or suite of products throughout their subscription license period. At the end of an existing subscription license period, or at a mutually agreed earlier date, we look to renew these contracts. We recognise software subscription license revenue and any minimum payments due from any 'other long term' contracts evenly over the life of the underlying contract term.
In addition to the subscription license fees, certain specified software products and associated services can be delivered on a contracted transactional licence model. These revenues are highly dependable, and recurring, but will see some variation year- to- year based on volume of transactions. Transactional licence and services are recognised as we provide the underlying service and include our contracts with our 340B customers that enable them to engage with their network of contract pharmacies.
We also provide professional and consulting services to our customers. Where these services are provided over an extended contract period, usually alongside the multi-year software license as part of one of our Trisus Optimization Suites, or where they relate to a complex implementation integral to the use of the software, the revenue is recognised evenly over the life of the underlying contract or project term.
The combination of these two software revenue models plus recurring professional services revenue represents the recurring platform revenues of the business, which for the current year have increased to $176.2m (FY24: $168.3m).
Shorter duration professional and consulting service contracts, typically completed within twelve months, are recognised on a percentage of completion basis and contributed $9.4m in FY25 (FY24: $7.2m) to total revenues. Our pipeline of contracted work remains healthy, with a strong backlog carried forward into FY26.
The Trisus Platform Partnership programme continues to be a source of new commercial opportunities, leveraging Group data assets for customer-focused solutions. This programme delivers meaningful benefits to our customers and derives new revenue opportunities and additional business models for the Group. As individual contracts will vary, revenue is recognised when we complete the underlying contractual performance obligations and are therefore able to invoice for the services we have provided.
A major area of success in the year has been our 340B Shelter program. Launched at the end of FY23, this programme utilises existing software and underlying data from the Trisus platform to bring new financial benefits to our 340B customers. As expected, the increasing longevity of this programme, has meant many of the original customers have moved to a recurring revenue model. These recurring revenues have contributed to the increase in Annual Recurring Revenues ("ARR"), detailed below.
We continue to generate non-recurring platform revenues from this and other Platform partner programmes, which for the year amounted to $20.0m (FY24: $13.8m). We anticipate further conversion of these non-recurring revenues to recurring ARR streams in future years.
Annual Recurring Revenue
Exit ARR as at 30 June 2025 increased 7% to $184m (FY24: $172.0m), and Net Revenue Retention improved to 107% (FY24: 98%). Customer retention remained in excess of 90% across the multiple measures we use to assess this, highlighting the enduring value we provide to our customers and the robustness of our business model. We anticipate ARR growth will more closely correlate to revenue growth in future periods, as more Platform partner revenues prove to be recurring.
Gross Margins
Our gross profit margin is calculated after taking account of the incremental costs we incur to obtain the underlying contracts, including sales commission contract costs which are charged in line with the associated revenue recognition and the direct costs of professional services employees who deliver the services required to meet our contractual obligations.
Gross profit for FY25 was $179.3m (FY24: $162.2m) and gross margin was 87% (FY24: 86%), reflecting ongoing efficiency and a resilient operating model.
Operating Expenses
Net operating expenses (to Adjusted EBITDA) increased 10% to $114.0m (FY24: $103.9m), consistent with our strategy of investing in product innovation, market expansion, and operational strengthening. Our focus on responsible cost management, through priority ranking then approving investment expenditure as we have clear evidence of revenue growth supports our commitment to deliver an Adjusted EBITDA margin of +30%, which has this year been achieved while fully absorbing the impact of the increase in employers' National Insurance contributions in the UK. Through this approach we balance and time our targeted investment to deliver sustained value creation.
Product innovation and enhancement continue to be core to our future and ability to deliver on our potential. We continue to pursue our buy, build, or partner strategy to build out the Trisus platform and its portfolio of products. As we are highly cash generative, we are able to use our cash reserves to further "build" alongside the partner activities in the year.
We continue to reinvest approximately 25% of revenue into product innovation and technology development. The total development cost for the year was $57.3m (FY24: $52.1m), with $14.9m (FY24: $15.8m) capitalised, representing 26% (FY24: 30%) of total R&D investment. We maintain strict criteria for capitalisation, limiting this to qualifying projects that will deliver further "future economic benefit". As specific products and enhancements are made available to relevant customers, the associated development costs capitalised are amortised and charged to the Group's income statement over their estimated useful economic life, thereby correctly matching costs to the resulting revenues.
Net Impairment charge on financial and contract assets
The Group continues to have low levels of potential bad debt exposure, which in FY25 led to a charge of $2.3m (FY24: $1.1m) reflected in the Consolidated Income Statement. This reflects our continued positive customer relationships and the effectiveness of our cash collection practices.
Adjusted EBITDA and Profit before Taxation
To supplement the financial measures defined under IFRS the Group presents certain non-GAAP (alternative) performance measures as detailed in Note 15. We believe the use and calculation of these measures are consistent with other similar listed companies and are frequently used by analysts, investors and other interested parties in their research.
The Group uses these adjusted measures in its operational and financial decision-making as it excludes certain items which are not reflective of the normal course of business allowing focus on what the Group regards as a more reliable indicator of the underlying operating performance.
Adjusted earnings represent operating profits, excluding any exceptional costs incurred in the year including integration and share related activities, share related costs including IFRS 2 share-based payments charge, interest, depreciation and amortisation ("Adjusted EBITDA").
Adjusted EBITDA increased to $65.3m (FY24: $58.3m), maintaining a margin in excess of our target 30%. The reduction in finance costs driven by our treasury management policy has contributed to Profit before taxation increasing by 52% to $24.0m (FY24: $15.7m).
Taxation
The Group generates profits in both the UK and the US. The Group's effective tax rate is primarily dependent on the applicable tax rates in these respective jurisdictions. This year's tax charge has also benefited from the recovery of amounts previously charged to the income statement, primarily in relation to the tax affairs of Sentry Data Systems. As these amounts were recovered in the year, the current year's tax charge has benefited to a total of $1.5m from the reversal of these charges. This combined with the increased impact of share-based incentives has produced an effective tax rate for FY25 of 18% (FY24: 26%), shaped by factors including deductibility of certain items and utilisation of carried-forward tax losses. Had we not had the benefit of the one-time $1.5m reversal, our effective tax rate for the year would have been 24%. Additional disclosures are provided in Note 5 to the financial statements.
EPS
The Group presents an Alternative Performance Measure of Adjusted EPS, to provide consistency to other listed companies. Both Basic and Diluted Adjusted EPS are calculated excluding exceptional costs incurred in the year, being $0.08m (tax adjusted) (FY24: $0.5m) and amortisation of acquired intangibles of $20.9m (FY24: $20.9m).
Including the benefit of the one-time tax benefits described above, Adjusted Basic EPS for the period improved 22.5% to $1.161 (FY24: $0.948), with Adjusted Diluted EPS at $1.142 (FY24: $0.939). Basic EPS increased to $0.562 (FY24: $0.335) and Diluted EPS to $0.552 (FY24: $0.332).
Cash and Bank Facilities
Cash generation and a strong balance sheet have always been a focus of the Group. Our business model, based on recurring revenues and high levels of customer retention, provide the foundations for high levels of cash generation. We always monitor the quality of our earnings through Operating Cash Conversion, this being our ability to convert our Adjusted EBITDA to "cash generated from operations" (as detailed in the consolidated cash flow statement). This has continued in FY25 where we have delivered good Operating Cash Conversion of 94% in the year (FY24: 90%).
Through this high level of cash conversion, Bank debt was reduced to $27.7m (FY24: $35.4m) and cash reserves strengthened to $55.9m (FY24: $34.6m) at year-end. Our Revolving Credit Facility remained in place at year end, with all covenants satisfied.
Since the year end, the Group has signed a new Revolving Credit Facility ("RCF") on more favourable terms, including reduced interest rates, for three years with the option to extend for two further one-year terms. This new unsecured $100m RCF replaces the old term loan and RCF as well as providing for a further $100m accordion facility. We thank our banking partners, alongside our shareholders, for their continued support of our growth strategy.
Balance Sheet
Within the balance sheet, deferred income levels reflect the amounts of the revenue under contract that we have invoiced but have yet to recognise as revenue and therefore are subject to timing. This balance is a subset of the future performance obligations detailed in Note 3.
Deferred income, accrued income, and the prepayment of sales commissions all arise as a result of our SaaS business model described above and we will always expect them to be part of our balance sheet. They arise where the cash profile of our contracts does not exactly match how revenue and related expenses are recognised in the Statement of Comprehensive Income. Overall, levels of deferred income are significantly more than any accrued income and the prepayment of sales commissions, we therefore remain cash flow positive in regard to how we account for our contracts.
Currency
The functional currency for the Group, debt and cash reserves, is US dollars. Whilst the majority of our cost base is US-located and therefore US dollar denominated, we have approximately twenty percent of the cost base situated in the UK, relating primarily to our UK employees which is therefore denominated in Sterling. As a result, we continue to closely monitor the Sterling to US dollar exchange rate and where appropriate, consider hedging strategies. The average exchange rate throughout the year was $1.2942 as compared to $1.2595 in the prior year. The exchange rate at the Balance Sheet date was $1.3713 (FY24: $1.2645).
Dividend
The Board is recommending a final dividend of 18.5.p per share (FY24: 16.0p), resulting in a proposed total dividend for the year of 32.0p per share (FY24: 29p). Subject to shareholder approval at the Annual General Meeting, the final dividend is expected to be paid on 18 December 2025 to those on the register as at 28 November 2025, with the corresponding ex-dividend date of 27 November 2025.
The final dividend of 18.5p per share is capable of being paid in US dollars subject to a shareholder having registered to receive their dividend in US dollars under the Company's Dividend Currency Election, or who register to do so by the close of business on 28 November 2025. The exact amount to be paid will be calculated by reference to the exchange rate to be announced on 28 November 2025.
Outlook
Craneware is uniquely placed to help healthcare leaders navigate ongoing economic challenges, changing regulation and the drive to deliver value in healthcare, providing a positive market environment for our offerings.
Trading in the first months of the new year has started well, which alongside the FY25 ARR and NRR growth provide confidence in continued growth acceleration in FY26.
Craneware has the proprietary data, expertise and customer base to play a central role in the transformation of the business of US healthcare, and the Board looks to the future with confidence.
| Keith Neilson CEO Craneware plc 12 September 2025 |
Craig Preston CFO Craneware plc 12 September 2025 |
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2025
| Total | Total | ||
| 2025 | 2024 | ||
| Notes | $'000 | $'000 | |
| Continuing operations: | |||
| Revenue from contracts with customers | 3 | 205,657 | 189,268 |
| Cost of sales | (26,384) | (27,072) | |
| Gross profit | 179,273 | 162,196 | |
| Other income | 57 | (398) | |
| Operating expenses | 4 | (151,759) | (140,953) |
| Net impairment charge on financial and contract assets | 4 | (2,319) | (1,111) |
| Operating profit | 4 | 25,252 | 19,734 |
| Analysed as: | |||
| Adjusted EBITDA1 | 65,258 | 58,279 | |
| Share-based payments | (5,695) | (4,487) | |
| Depreciation of property, plant and equipment | (2,826) | (3,293) | |
| Exceptional costs2 | 4 | (102) | (675) |
| Amortisation of intangible assets - other | 8 | (10,462) | (9,169) |
| Amortisation of intangible assets - acquired intangibles | 8 | (20,921) | (20,921) |
| Finance income | 1,446 | 1,143 | |
| Finance expense | (2,719) | (5,130) | |
| Profit before taxation | 23,979 | 15,747 | |
| Tax on profit | 5 | (4,316) | (4,044) |
| Profit for the year attributable to owners of the parent | 19,663 | 11,703 | |
| Total comprehensive income attributable to owners of the parent | 19,663 | 11,703 | |
1. See Note 15 for explanation of Alternative Performance Measures.
2. Exceptional costs relate to legal fees associated with the unsolicited approach to acquire the Group and also the Company's proposed capital reduction (FY24: relate to integration costs associated with the purchase of Sentry Data Systems, Inc. ("Sentry"))
Earnings per share for the year attributable to equity holders
| Notes | 2025 | 2024 | |
| Basic ($ per share) | 7 | 0.562 | 0.335 |
| *Adjusted Basic ($ per share) | 7 | 1.161 | 0.948 |
| Diluted ($ per share) | 7 | 0.552 | 0.332 |
| *Adjusted Diluted ($ per share) | 7 | 1.142 | 0.939 |
* Adjusted Earnings per share calculations allow for the tax adjusted exceptional costs (if applicable in the year) together with amortisation on acquired intangible assets.
Consolidated Statement of Changes in Equity for the year ended 30 June 2025
| Share | Capital | |||||||
| Share | Premium | Treasury | Redemption | Merger | Other | Retained | Total | |
| Capital | Account | Shares | Reserve | Reserve | Reserves | Earnings | Equity | |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
| At 1 July 2023 | 659 | 97,204 | (3,737) | 9 | 186,981 | 6,840 | 39,885 | 327,841 |
| Total comprehensive income - profit for the year | - | - | - | - | - | - | 11,703 | 11,703 |
| Transactions with owners: | ||||||||
| Share-based payments | - | - | - | - | - | 4,127 | - | 4,127 |
| Purchase of own shares through EBT | - | - | - | - | - | - | (863) | (863) |
| Purchase of own shares through share buyback | - | - | (2,435) | - | - | - | - | (2,435) |
| Deferred tax taken directly to equity | - | - | - | - | - | - | 1,893 | 1,893 |
| Impact of share options and awards exercised/lapsed | - | - | 1,680 | - | - | (2,077) | (479) | (876) |
| Dividends (Note 6) | - | - | - | - | - | - | (12,798) | (12,798) |
| At 30 June 2024 | 659 | 97,204 | (4,492) | 9 | 186,981 | 8,890 | 39,341 | 328,592 |
| Total comprehensive income - profit for the year | - | - | - | - | - | - | 19,663 | 19,663 |
| Transactions with owners: | ||||||||
| Share-based payments | - | - | - | - | - | 5,695 | - | 5,695 |
| Purchase of own shares through EBT | - | - | - | - | - | - | (105) | (105) |
| Deferred tax taken directly to equity | - | - | - | - | - | - | (730) | (730) |
| Impact of share options and awards exercised/lapsed | - | - | 1,688 | - | - | (3,343) | (633) | (2,288) |
| Dividends (Note 6) | - | - | - | - | - | - | (13,268) | (13,268) |
| At 30 June 2025 | 659 | 97,204 | (2,804) | 9 | 186,981 | 11,242 | 44,268 | 337,559 |
Co nsolidated Balance Sheet as at 30 June 2025
| Notes | 2025 | 2024 | |
| $'000 | $'000 | ||
| ASSETS | |||
| Non-Current Assets | |||
| Property, plant and equipment | 6,252 | 8,592 | |
| Intangible assets - goodwill | 8 | 235,236 | 235,236 |
| Intangible assets - acquired intangibles | 8 | 124,485 | 145,406 |
| Intangible assets - other | 8 | 61,243 | 56,827 |
| Trade and other receivables | 9 | 3,752 | 3,634 |
| Deferred tax | 10 | 499 | 733 |
| 431,467 | 450,428 | ||
| Current Assets | |||
| Trade and other receivables | 9 | 63,672 | 58,638 |
| Cash and cash equivalents | 55,921 | 34,589 | |
| 119,593 | 93,227 | ||
| Total Assets | 551,060 | 543,655 | |
| EQUITY AND LIABILITIES | |||
| Non-Current Liabilities | |||
| Borrowings | 12 | - | 27,372 |
| Deferred income | - | 958 | |
| Leased property | 3,011 | 3,823 | |
| Deferred tax | 10 | 28,806 | 33,441 |
| Other provisions | 574 | 708 | |
| 32,391 | 66,302 | ||
| Current Liabilities | |||
| Borrowings | 12 | 27,740 | 8,000 |
| Deferred income | 64,561 | 65,859 | |
| Amounts held on behalf of customers | 61,323 | 53,390 | |
| Tax payable | 2,045 | 4,278 | |
| Trade and other payables | 13 | 25,441 | 17,234 |
| 181,110 | 148,761 | ||
| Total Liabilities | 213,501 | 215,063 | |
| Equity | |||
| Share capital | 659 | 659 | |
| Share premium account | 97,204 | 97,204 | |
| Treasury shares | (2,804) | (4,492) | |
| Capital redemption reserve | 9 | 9 | |
| Merger reserve | 186,981 | 186,981 | |
| Other reserves | 11,242 | 8,890 | |
| Retained earnings | 44,268 | 39,341 | |
| Total Equity | 337,559 | 328,592 | |
| Total Equity and Liabilities | 551,060 | 543,655 |
Consolidated Statement of Cash Flows for the year ended 30 June 2025
| Notes | 2025 | 2024 | |
| $'000 | $'000 | ||
| Cash flows from operating activities | |||
| Cash generated from operations | 11 | 69,595 | 53,703 |
| Tax paid | (9,697) | (11,841) | |
| Net cash generated from operating activities | 59,898 | 41,862 | |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment | (491) | (1,191) | |
| Capitalised intangible assets | 8 | (14,878) | (15,766) |
| Interest received | 1,384 | 1,143 | |
| Net cash used in investing activities | (13,985) | (15,814) | |
| Cash flows from financing activities | |||
| Dividends paid to company shareholders | 6 | (13,268) | (12,798) |
| Proceeds from issuance of treasury shares | 5 | 276 | |
| Repayment of borrowings | 12 | (8,000) | (48,000) |
| Interest on borrowings | (2,176) | (4,624) | |
| Purchase of own shares by EBT | (105) | (863) | |
| Share buyback programme | - | (2,485) | |
| Payment of lease liabilities | (861) | (1,502) | |
| Payment of lease interest | (176) | - | |
| Net cash used in financing activities | (24,581) | (69,996) | |
| Net increase/ (decrease) in cash and cash equivalents | 21,332 | (43,948) | |
| Cash and cash equivalents at the start of the year | 34,589 | 78,537 | |
| Cash and cash equivalents at the end of the year | 55,921 | 34,589 |
Notes to the Financial Statements
General Information
Craneware plc ("the Company") is a public limited company incorporated and domiciled in Scotland. The Company has a primary listing on the Alternative Investment Market ('AIM') of the London Stock Exchange. The principal activity of the Company continues to be the development, licensing and ongoing support of computer software for the US healthcare industry.
Basis of preparation
The financial statements of the Group and the Company are prepared in accordance with UK adopted international accounting standards (International Financial Reporting Standards ("IFRS")) and the applicable legal requirements of the Companies Act 2006.
The Group and the Company financial statements have been prepared under the historic cost convention and prepared on a going concern basis. The Strategic Report contains information regarding the Group's activities and an overview of the development of its products, services and the environment in which it operates. The Group's revenue, operating results, cash flows and balance sheet are detailed in the financial statements and explained in the Financial Review.
The applicable accounting policies are set out below, together with an explanation of where changes have been made to previous policies on the adoption of new accounting standards in the year, if relevant.
The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.
The Company and its subsidiary undertakings are referred to in this report as the Group.
Going concern
The Group is profitable and there is a reasonable expectation that this will continue to be the case. Our business model is delivering high levels of recurring revenue, supported by long term underlying contracts, that deliver high levels of cash generation. In addition, the Group has cash and cash equivalents of $55.9m as well as a committed but undrawn facility available to it of $80m. See note 14 for details of the renewal of the loan facility post year end, after which the Group has $72m in committed but undrawn facility available.
The directors have prepared cash flow forecasts covering a period of over twelve months from the date of approval of these financial statements. These forecasts include consideration of severe but plausible downsides, should these events occur, the Group would have sufficient funds to meet its liabilities as they fall due for that period. These scenarios anticipate a zero-growth scenario, such that the only sales made by the Group would be to replace losses of existing long-term contracts. Under this basis, with minor but appropriate rebalancing of the cost base, the Group remained in compliance with its covenants and had no need to draw upon the committed undrawn facility.
Based on this assessment, the Directors have determined that the Group has adequate resources to continue in business for the foreseeable future and that it is therefore appropriate to adopt the going concern basis in preparing the consolidated and the Company financial statements.
1. Selected principal accounting policies
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied, unless otherwise stated.
Reporting currency
The Directors consider that, as the Group's revenues are primarily denominated in US dollars, the Company's functional currency is the US dollar. The Group's financial statements are therefore prepared in US dollars.
Currency translation
Transactions denominated in currencies other than US dollars are translated into US dollars at the rate of exchange ruling at the date of the transaction. The average exchange rate during the course of the year was $1.2942/£1 (FY24: $1.2595/£1). Monetary assets and liabilities expressed in foreign currencies are translated into US dollars at rates of exchange ruling at the Balance Sheet date $1.3713/£1 (FY24: $1.2645/£1). Exchange gains or losses arising upon subsequent settlement of the transactions and from translation at the Balance Sheet date, are included within the related category of expense where separately identifiable, or administrative expenses.
Revenue from contracts with customers
The Group follows the principles of IFRS 15, 'Revenue from Contracts with Customers'; accordingly, revenue is recognised using the five-step model:
1. Identify the contract;
2. Identify the performance obligations in the contract;
3. Determine the transaction price;
4. Allocate the transaction price to the performance obligations in the contract; and
5. Recognise revenue when or as performance obligations are satisfied.
Revenue is recognised either when the performance obligation in the contract has been performed (point in time recognition) or over time as control of the performance obligation is transferred to the customer.
Revenue is derived from sales of software licenses and professional services including training and consultancy and transactional fees.
Revenue from software licenses
Revenue from both on premise and cloud-based software licensed products is recognised from the point at which the customer gains control and the right to use our software. The following key judgements have been made in relation to revenue recognition of software license:
| · | This is right of use software due to the integral updates provided on a regular basis to keep the software relevant and, as a result, the licensed software revenue will be recognised over time rather than at a point in time; |
| · | The software license together with installation, regular updates and access to support services form a single performance obligation; |
| · | The transaction price is allocated to each distinct one year license period with annual increases being recognised in the year they apply; and |
| · | Discounts in relation to software licenses are recognised over the life of the contract. |
This policy is consistent with the Company's products providing customers with a service through the delivery of, and access to, software solutions (Software-as-a-Service ("SaaS")), and results in revenue being recognised over the period that these services are delivered to customers.
Incremental costs directly attributable in securing the contract are charged equally over the life of the contract and as a consequence are matched to revenue recognised. Any deferred contract costs are included in both current and non-current trade and other receivables.
Revenue from professional services
Revenue from all professional services, including training and consulting services, is recognised when the performance obligation has been fulfilled and the services are provided. These services could be provided by a third party and are therefore considered to be separate performance obligations. Where professional services engagements contain material obligations, revenue is recognised when all the obligations under the engagement have been fulfilled. Where professional services engagements are provided on a fixed price basis, revenue is recognised based on the percentage complete of the relevant engagement. Percentage completion is estimated based on the total number of hours performed on the project compared to the total number of hours expected to complete the project.
'White-labelling' or other 'paid for development work' is generally provided on a fixed price basis and as such revenue is recognised based on the percentage completion or delivery of the relevant project. Where percentage completion is used it is estimated based on the total number of hours performed on the project compared to the total number of hours expected to complete the project. Where contracts underlying these projects contain material obligations, revenue is deferred and only recognised when all the obligations under the engagement have been fulfilled.
Revenue from transactional services
Transactional service fees are recognised at the point in time when the service is provided.
Revenue from platform services
As individual contracts will vary, revenue is recognised when the underlying contractual performance obligations are complete and the invoice for the services can be issued.
Should any contracts contain non-standard clauses, revenue recognition will be in accordance with the underlying contractual terms which will normally result in recognition of revenue being deferred until all material obligations are satisfied. The Group does not have any contracts where a financing component exists within the contract.
The excess of amounts invoiced over revenue recognised are included in deferred income. If the amount of revenue recognised exceeds the amount invoiced the excess is included within accrued income.
Contract assets include sales commissions and prepaid royalties. Contract liabilities include unpaid sales commissions on contracts sold and deferred income relating to license fees billed in advance and recognised over time.
Exceptional items
The Group defines exceptional items as transactions (including costs incurred by the Group) which relate to non-recurring events. These are disclosed separately where it is considered it provides additional useful information to the users of the financial statements.
Taxation
The charge for taxation is based on the profit for the year as adjusted for items which are non-assessable or disallowable. It is calculated using taxation rates that have been enacted or substantively enacted by the Balance Sheet date.
Deferred taxation is computed using the liability method. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax bases of assets and liabilities. They are measured using enacted rates and laws that will be in effect when the differences are expected to reverse. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction does not affect accounting or taxable profit or loss. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will arise against which the temporary differences will be utilised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities arising in the same tax jurisdiction are offset.
In the UK and the US, the Group is entitled to a tax deduction for amounts treated as compensation on exercise of certain employee share options and on the vesting of conditional share awards under each jurisdiction's tax rules. Share-based payments are recorded in the Group's Consolidated Statement of Comprehensive Income over the period from the grant date to the vesting date of the relevant options and conditional share awards. As there is a temporary difference between the accounting and tax bases a deferred tax asset is recorded. The deferred tax asset arising is calculated by comparing the estimated amount of tax deduction to be obtained in the future (based on the Company's share price at the Balance Sheet date) with the cumulative amount of the compensation expense recorded in the Consolidated Statement of Comprehensive Income. If the amount of estimated future tax deduction exceeds the cumulative amount of the remuneration expense at the statutory rate, the excess is recorded directly in equity against retained earnings.
Intangible Assets
(a) Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Goodwill is recognised as a non-current asset in accordance with IFRS 3 and is not amortised.
After initial recognition, goodwill is stated at cost less any accumulated impairment losses. It is tested at least annually for impairment. Any impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash-generating units that are expected to benefit from the business combination in which the goodwill arose.
(b) Proprietary software
Proprietary software acquired in a business combination is recognised at fair value at the acquisition date. Proprietary software has a finite useful economic life and is carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the associated costs over their estimated useful lives of five years.
(c) Customer relationships
Contractual customer relationships acquired in a business combination are recognised at fair value at the acquisition date. The contractual customer relationships have a finite useful economic life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method over the expected life of the customer relationship which has been assessed as up to fifteen years.
(d) Development costs
Expenditure associated with developing and maintaining the Group's software products is recognised as incurred.
Development expenditure is capitalised where new product development projects
• are technically feasible;
• production and sale is intended;
• a market exists;
• expenditure can be measured reliably; and
• sufficient resources are available to complete such projects.
Costs are capitalised until initial commercialisation of the product, and thereafter amortised on a straight-line basis over its estimated useful life, which has been assessed as between five and ten years. Expenditure not meeting the above criteria is expensed as incurred.
Employee costs and specific third party costs involved with the development of the software are included within amounts capitalised.
(e) Computer software
Costs associated with acquiring computer software and licensed to use technology are capitalised as incurred, except cloud computing software where the Group does not have control of the software which is expensed as incurred. They are amortised on a straight-line basis over their useful economic life which is typically three to five years.
(f) Trademarks
Trademarks acquired in a business combination are initially measured at fair value at the acquisition date. Trademarks have a finite useful economic life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the associated costs over their estimated useful lives of up to ten years.
Impairment of non-financial assets
At each reporting date the Group considers the carrying amount of its tangible and intangible assets including goodwill to determine whether there is any indication that those assets have suffered an impairment loss. If there is such an indication, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any) through determining the value in use of the cash generating unit that the asset relates to.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the impairment loss is recognised as an expense.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset. A reversal of an impairment loss is recognised as income immediately. Impairment losses relating to goodwill are not reversed.
2. Critical accounting estimates and judgements
The preparation of financial statements in accordance with IFRS requires the Directors to make critical accounting estimates and judgements that affect the amounts reported in the financial statements and accompanying notes. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying value of assets and liabilities within the next financial year are discussed below:
Critical Estimates
· Impairment assessment : the Group tests annually whether Goodwill has suffered any impairment and for other assets including acquired intangibles at any point where there are indications of impairment. This requires an estimation of the recoverable amount of the applicable cash generating unit to which the Goodwill and other assets relate. Estimating the recoverable amount requires the Group to make an estimate of the expected future cash flows from the specific cash generating unit using certain key assumptions including growth rates and a discount rate. These assumptions result in no impairment in Goodwill.
Other Estimates
· Useful lives of intangible assets : in assessing useful life, the Group uses careful judgement based on past experience, advances in product development and also best practice. The Group amortises intangible assets over a period of up to 15 years.
Judgements
· Capitalisation of development expenditure : the Group capitalises development costs provided the aforementioned conditions have been met. Consequently, the Directors require to continually assess the commercial potential of each product in development and its useful life following launch.
· Provisions for income taxes: the Group is subject to tax in the UK and US and this requires the Directors to regularly assess the appropriateness of its transfer pricing policy.
· Revenue recognition : in determining the amount of revenue and related balance sheet items to be recognised in the year, management is required to make a number of judgements and assumptions. These are detailed in Note 1 Revenue from contracts with customers.
3. Revenue
The chief operating decision maker has been identified as the Board of Directors. The Group revenue is derived almost entirely from the sale of software licenses and professional services (including installation) to hospitals and health systems within the US. Consequently, the Board has determined that Group supplies only one geographical market place and as such revenue is presented in line with management information without the need for additional segmental analysis. All of the Group assets are located in the United States of America with the exception of the Parent Company's, the net assets of which are disclosed separately on the Company Balance Sheet and are located in the United Kingdom.
| 2025 | 2024 | |
| $'000 | $'000 | |
| Software licensing | 134,758 | 138,687 |
| Professional services - recurring | 5,706 | 4,907 |
| Transactional revenue | 35,784 | 24,708 |
| Contracted recurring revenue | 176,248 | 168,302 |
| Professional services - non-recurring | 9,399 | 7,174 |
| Platform revenues - non-recurring | 20,010 | 13,792 |
| Total revenue | 205,657 | 189,268 |
Contract assets
The Group has recognised the following assets related to contracts with customers:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Prepaid commissions and royalties < 1 year | 2,291 | 2,485 |
| Prepaid commissions and royalties > 1 year | 3,248 | 3,235 |
| Total contract assets | 5,539 | 5,720 |
Contract assets are included within deferred contract costs and prepayments in the Balance Sheet. Costs recognised during the year in relation to assets at 30 June 2024 were $2.4m.
Contract liabilities
The following table shows the total contract liabilities from software license and professional service contracts:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Software licensing | 55,690 | 56,759 |
| Professional services | 8,871 | 10,058 |
| Total contract liabilities | 64,561 | 66,817 |
Contract liabilities are included within deferred income in the Balance Sheet.
Revenue of $65.3m was recognised during the year in relation to contract liabilities as of 30 June 2024.
The following table shows the aggregate transaction price allocated to performance obligations that are partially or fully unsatisfied from software license and professional service contracts.
| Total unsatisfied | Expected recognition | ||||
| performance obligations | < 1 year | 1 to 2 years | 2 to 3 years | > 3 years | |
| Revenue expected to be recognised | $'000 | $'000 | $'000 | $'000 | $'000 |
| At 30 June 2025 | |||||
| - Software | 308,986 | 117,830 | 83,489 | 50,061 | 57,606 |
| - Professional services | 17,228 | 10,730 | 2,850 | 1,736 | 1,912 |
| Total at 30 June 2025 | 326,214 | 128,560 | 86,339 | 51,797 | 59,518 |
| At 30 June 2024 | |||||
| - Software | 301,215 | 119,167 | 93,304 | 57,086 | 31,658 |
| - Professional services | 19,493 | 12,947 | 3,309 | 1,847 | 1,390 |
| Total at 30 June 2024 | 320,708 | 132,114 | 96,613 | 58,933 | 33,048 |
Revenue of $132.1m was recognised during the year in relation to unsatisfied performance obligations as of 30 June 2024.
The majority of these performance obligations are unbilled at the Balance Sheet date and therefore not reflected in these financial statements.
4. Operating profit
The following items have been included in arriving at operating profit:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Employee costs | 99,736 | 92,496 |
| Employee costs capitalised | (9,738) | (9,811) |
| Depreciation of property, plant and equipment | 2,826 | 3,293 |
| Amortisation of intangible assets - other | 10,462 | 9,169 |
| Amortisation of intangible assets - acquired intangibles | 20,921 | 20,921 |
| Impairment of trade receivables | 1,570 | 1,822 |
| Exceptional costs* | 102 | 675 |
| Operating lease rents for premises | 20 | 12 |
* Exceptional costs relate to legal fees associated with the unsolicited approach to acquire the Group and also the Company's proposed capital reduction (FY24: integration costs associated with the purchase of Sentry Data Systems, Inc. ("Sentry"))
Included in reaching operating profit is the movement in the provision for impairment of trade receivables during the year of a $2,448,000 charge (FY24: $1,164,000), plus $129,000 net impairment credit (FY24: 53,000) for trade receivables recognised directly in operating costs.
5. Tax on profit
| 2025 | 2024 | |
| $'000 | $'000 | |
| Profit on ordinary activities before tax | 23,979 | 15,747 |
| Current tax | ||
| Corporation tax on profits of the year | 11,118 | 10,715 |
| Adjustments for prior years | (1,671) | 65 |
| Total current tax charge | 9,447 | 10,780 |
| Deferred tax | ||
| Deferred tax for current year | (5,016) | (6,097) |
| Adjustments for prior years | 175 | (630) |
| Change in UK tax rate | (290) | (9) |
| Total deferred tax credit | (5,131) | (6,736) |
| Tax on profit | 4,316 | 4,044 |
| The difference between the current tax charge on ordinary activities for the year, reported in the Consolidated Statement of Comprehensive Income, and the current tax charge that would result from applying a relevant standard rate of tax to the profit on ordinary activities before tax, is explained as follows: | ||
| Profit on ordinary activities at the UK tax rate 25% (FY24 25%) | 5,995 | 3,937 |
| Effects of: | ||
| Adjustment for prior years | (1,496) | (565) |
| Change in tax rate on opening deferred tax balance | (290) | (9) |
| Additional US taxes on profits 25% (FY24: 25%) | 255 | 229 |
| Internally developed software | (418) | (235) |
| Expenses not deductible for tax purposes | 800 | 656 |
| Income not taxable in the year | 346 | (748) |
| Spot rate remeasurement | 29 | (27) |
| Movement in tax losses | - | 1,018 |
| Deduction on share plan charges | (830) | (271) |
| Other | (75) | 59 |
| Total tax charge | 4,316 | 4,044 |
6. Dividends
The dividends paid during the year were as follows:-
| 2025 | 2024 | |
| $'000 | $'000 | |
| Final dividend, re 30 June 2024 - 20.23 cents (16.0 pence)/share | 7,100 | 7,046 |
| Interim dividend, re 30 June 2025 - 16.87 cents (13.5 pence)/share | 6,168 | 5,752 |
| Total dividends paid to Company shareholders in the year | 13,268 | 12,798 |
Prior year:
Final dividend 20.19 cents (16.0 pence)/share
Interim dividend 16.51 cents (13.0 pence)/share
The proposed final dividend 25.4 cents (18.5 pence), as noted in the Financial Review section of the Strategic Report, for the year ended 30 June 2025 is subject to approval by the shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
7. Earnings per share
The calculation of basic and diluted earnings per share is based on the following data:
Weighted average number of shares
| 2025 | 2024 | |
| No. of Shares | No. of Shares | |
| 000s | 000s | |
| Weighted average number of Ordinary Shares for the purpose of basic earnings per share (excluding own shares held) | 35,011 | 34,957 |
| Effect of dilutive potential Ordinary Shares: share options and LTIPs | 584 | 335 |
| Weighted average number of Ordinary Shares for the purpose of diluted earnings per share | 35,595 | 35,292 |
The Group has one category of dilutive potential Ordinary shares, being those granted to Directors and employees under the employee share plans.
Shares held by the Employee Benefit Trust and Treasury Shares held directly by the Company are excluded from the weighted average number of Ordinary shares for the purposes of basic earnings per share.
Profit for year
| 2025 | 2024 | |
| $'000 | $'000 | |
| Profit for the year attributable to equity holders of the parent | 19,663 | 11,703 |
| Exceptional costs (tax adjusted) | 77 | 507 |
| Amortisation of acquired intangibles (tax adjusted) | 20,921 | 20,921 |
| Adjusted profit for the year attributable to equity holders of the parent | 40,661 | 33,131 |
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of shares in issue during the year.
For diluted earnings per share, the weighted average number of Ordinary shares calculated above is adjusted to assume conversion of all dilutive potential Ordinary shares.
Earnings per share
| 2025 | 2024 | |
| cents | cents | |
| Basic EPS | 56.2 | 33.5 |
| Diluted EPS | 55.2 | 33.2 |
| Adjusted basic EPS | 116.1 | 94.8 |
| Adjusted diluted EPS | 114.2 | 93.9 |
8. Intangible assets
| Goodwill | Customer | Proprietary | Development | Computer | ||||||
| Relationships | Software | Trademarks | Costs | Software | Total | |||||
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||
| Cost | ||||||||||
| At 1 July 2024 | 235,486 | 153,964 | 52,724 | 5,000 | 86,817 | 4,246 | 538,237 | |||
| Additions | - | - | - | - | 14,878 | - | 14,878 | |||
| Disposals | - | (2,964) | (1,221) | - | (2,252) | - | (6,437) | |||
| At 30 June 2025 | 235,486 | 151,000 | 51,503 | 5,000 | 99,443 | 4,246 | 546,678 | |||
| Accumulated amortisation and impairment | ||||||||||
| At 1 July 2024 | 250 | 32,839 | 31,794 | 1,649 | 30,145 | 4,091 | 100,768 | |||
| Charge for the year | - | 10,067 | 10,299 | 555 | 10,389 | 73 | 31,383 | |||
| Amortisation on disposals | - | (2,964) | (1,221) | - | (2,252) | - | (6,437) | |||
| At 30 June 2025 | 250 | 39,942 | 40,872 | 2,204 | 38,282 | 4,164 | 125,714 | |||
| Net Book Value at 30 June 2025 | 235,236 | 111,058 | 10,631 | 2,796 | 61,161 | 82 | 420,964 | |||
| Cost | ||||||||||
| At 1 July 2023 | 235,486 | 153,964 | 52,724 | 5,000 | 71,056 | 4,461 | 522,691 | |||
| Additions | - | - | - | - | 15,761 | 5 | 15,766 | |||
| Disposals | - | - | - | - | - | (220) | (220) | |||
| At 30 June 2024 | 235,486 | 153,964 | 52,724 | 5,000 | 86,817 | 4,246 | 538,237 | |||
| Accumulated amortisation and impairment | ||||||||||
| At 1 July 2023 | 250 | 22,773 | 21,494 | 1,094 | 22,084 | 3,203 | 70,898 | |||
| Charge for the year | - | 10,066 | 10,300 | 555 | 8,061 | 1,108 | 30,090 | |||
| Amortisation on disposals | - | - | - | - | - | (220) | (220) | |||
| At 30 June 2024 | 250 | 32,839 | 31,794 | 1,649 | 30,145 | 4,091 | 100,768 | |||
| Net Book Value at 30 June 2024 | 235,236 | 121,125 | 20,930 | 3,351 | 56,672 | 155 | 437,469 | |||
In accordance with the Group's accounting policy, the carrying values of Goodwill and other intangible assets are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill arose on the acquisition of subsidiaries and is split into the following CGUs:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Craneware InSight | 11,188 | 11,188 |
| Sentry | 224,048 | 224,048 |
| Total Goodwill | 235,236 | 235,236 |
Craneware InSight
The carrying values are assessed for impairment purposes by calculating the value in use of the core Craneware business cash generating unit. This is the lowest level of which there are separately identifiable cash flows to assess the Goodwill acquired as part of the Craneware InSight, Inc. purchase.
Sentry
The carrying values are assessed for impairment purposes by calculating the value in use of the Sentry business cash generating unit. This is the lowest level of which there are separately identifiable cash flows to assess the Goodwill acquired as part of the Sentry acquisition.
The key assumptions in assessing value in use for the CGU's are:
| Growth rate in perpetuity | Post-tax discount rate | |||
| 2025 | 2024 | 2025 | 2024 | |
| Craneware InSight | 2.0% | 2.0% | 9.0% | 9.0% |
| Sentry | 2.0% | 2.0% | 9.0% | 9.0% |
After the initial term of 5 years, the Group applied a growth rate for each CGU. These take into consideration the customer bases and expected revenue commitments from it, anticipated additional sales to both existing and new customers and market trends currently seen and those expected in the future.
The Group has assessed events and circumstances in the year and the assets and liabilities of the business cash-generating unit; this assessment has confirmed that no significant events or circumstances occurred in the year and that the assets and liabilities showed no significant change from last year.
After review of future forecasts, the Group confirmed the growth forecast for the next five years showed that the recoverable amounts would continue to exceed the carrying values. There are no reasonable possible changes in assumptions that would result in an impairment in the Craneware CGU and certain disclosures, including sensitivities, relating to goodwill have not been made for this CGU given the significant headroom on impairment testing. For the Sentry CGU the impairment test was most sensitive to the discount rate assumption. There is no impairment, with all other assumptions remaining the same, with a discount rate up to 16%. There are no reasonable possible changes in any of the other assumptions for this CGU that would result in an impairment. The risk associated with the 340B regulatory environment is monitored consistently and is referenced in the Principal Risks and Uncertainties section of the Annual Report.
9. Trade and other receivables
| 2025 | 2024 | |
| $'000 | $'000 | |
| Trade receivables | 57,462 | 48,007 |
| Less: provision for impairment of trade receivables | (3,641) | (2,763) |
| Net trade receivables | 53,821 | 45,244 |
| Other receivables | 1,207 | 1,862 |
| Current tax receivable | - | 1,921 |
| Prepayments and accrued income | 7,151 | 7,787 |
| Deferred contract costs | 5,245 | 5,458 |
| 67,424 | 62,272 | |
| Less non-current receivables: | ||
| Other debtors | (504) | (399) |
| Deferred contract costs | (3,248) | (3,235) |
| Current portion | 63,672 | 58,638 |
10. Deferred tax
Deferred tax is calculated in full on the temporary differences under the liability method using a rate of tax of 25% (FY24: 25%) in the UK and 25% (FY24: 25%) in the US including a provision for state taxes.
| 2025 | 2024 | |
| $'000 | $'000 | |
| At 1 July | (32,708) | (41,337) |
| Credit to comprehensive income | 5,131 | 10,522 |
| Transfer direct to equity | (730) | (1,893) |
| At 30 June | (28,307) | (32,708) |
The movements in deferred tax assets and liabilities during the year are shown below. Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net. The balances for the Group are analysed as follows:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Net deferred tax asset | 499 | 733 |
| Net deferred tax liability | (28,806) | (33,441) |
| At 30 June | (28,307) | (32,708) |
Deferred tax assets - recognised
| Short term timing differences $'000 |
Losses $'000 |
Share options $'000 |
Total $'000 |
|
| A 1 July 2024 | 2,610 | 390 | 4,514 | 7,514 |
| (Charged)/ credited to comprehensive income | (53) | (39) | 238 | 146 |
| Charged to equity | - | - | (730) | (730) |
| Total provided at 30 June 2025 | 2,557 | 351 | 4,022 | 6,930 |
| At 1 July 2023 | 4,511 | 428 | 2,357 | 7,296 |
| (Charged)/ credited to comprehensive income | (1,901) | (38) | 4,050 | 2,111 |
| Charged to equity | - | - | (1,893) | (1,893) |
| Total provided at 30 June 2024 | 2,610 | 390 | 4,514 | 7,514 |
Deferred tax liabilities - recognised
| Long term timing differences $'000 |
Accelerated tax depreciation $'000 |
Total $'000 |
||
| A 1 July 2024 | (37,979) | (2,243) | (40,222) | |
| Credited/ (charged) to comprehensive income | 5,689 | (704) | 4,985 | |
| Total provided at 30 June 2025 | (32,290) | (2,947) | (35,237) | |
| At 1 July 2023 | (44,378) | (4,255) | (48,633) | |
| Credited to comprehensive income | 6,399 | 2,012 | 8,411 | |
| Total provided at 30 June 2024 | (37,979) | (2,243) | (40,222) |
The analysis of the deferred tax assets and liabilities is as follows:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Deferred tax assets: | ||
| Deferred tax assets to be recovered after more than 1 year | 6,579 | 7,124 |
| Deferred tax assets to be recovered within 1 year | 351 | 390 |
| 6,930 | 7,514 | |
| Deferred tax liabilities: | ||
| Deferred tax liabilities to be recovered after more than 1 year | (35,237) | (40,222) |
| Deferred tax liabilities to be recovered within 1 year | - | - |
| (35,237) | (40,222) | |
| Net deferred tax liability | (28,307) | (32,708) |
11. Cash generated from operations
| Reconciliation of profit before taxation to net cash generated from operations | ||
| 2025 | 2024 | |
| $'000 | $'000 | |
| Profit before tax | 23,979 | 15,747 |
| Finance income | (1,446) | (1,143) |
| Finance expense | 2,719 | 5,130 |
| Depreciation on property, plant and equipment | 2,826 | 3,293 |
| Amortisation on intangible assets - other | 10,462 | 9,169 |
| Amortisation on intangible assets - acquired intangibles | 20,921 | 20,921 |
| Loss on disposals | 3 | 113 |
| Share-based payments | 5,695 | 4,487 |
| Movements in working capital: | ||
| Increase in trade and other receivables | (7,073) | (21,183) |
| Increase in trade and other payables | 3,463 | 14,999 |
| Increase in amounts held on behalf of customers | 8,046 | 2,170 |
| Cash generated from operations | 69,595 | 53,703 |
12. Borrowings
The debt facility comprises a term loan of $8m (FY24: $16m) which is repayable in quarterly instalments over 5 years up to 30 June 2026, and a revolving loan facility of $100m of which $20m (FY24: $20m) is drawn down and which expires on 7 June 2026. During the year, $8m (FY24: $8m) was repaid on the term loan and the amount drawn down on the revolving credit facility remained constant (FY24: reduced by $40m). See note 14 for details of the renewal of the loan facilities post year end.
Interest is charged on the facility on a daily basis at margin and compounded reference rate. The margin is related to the leverage of the Group as defined in the loan agreement. As the leverage of the Group strengthens, the applicable margin reduces.
The facility was secured by a Scots law floating charge granted by the Company, an English law debenture granted by the Company and a New York law security agreement to which the Company and certain of its subsidiaries were parties. The security was released and discharged in September 2024 following the satisfaction of certain performance conditions of the loan agreement in connection with the acquisition of Sentry Data Systems, Inc.
| 2025 | 2024 | |
| $'000 | $'000 | |
| Current interest bearing borrowings | 27,740 | 8,000 |
| Non current interest bearing borrowings | - | 27,372 |
| Total | 27,740 | 35,372 |
Arrangement fees paid in advance of the setting up of the facility are being recognised over the life of the facility in operating costs. The remaining balance of unamortised fees and interest at 30 June 2025 is $0.26m (FY24: $0.67m).
See Note 15 for a reconciliation between borrowings, cash and net borrowings.
Loan covenants
Under the facilities the Group is required to meet quarterly covenants tests in respect of:
a) Adjusted leverage which is the ratio of total net debt on the last day of the relevant period to adjusted EBITDA.
b) Cash flow cover which is the ratio of cashflow to net finance charges in respect of the relevant period.
The Group complied with these ratios throughout the reporting period.
Financing arrangements
The Group's undrawn borrowing facilities were as follows:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Revolving facility | 80,000 | 80,000 |
| Undrawn borrowing facilities | 80,000 | 80,000 |
13. Trade and other payables
| 2025 | 2024 | |
| $'000 | $'000 | |
| Trade payables | 4,058 | 3,725 |
| Lease creditor due < 1 year | 903 | 952 |
| Other provisions < 1 year | 490 | 512 |
| Social security and PAYE | 3,588 | 2,268 |
| Other creditors | 301 | 156 |
| Accruals | 15,326 | 9,367 |
| Advanced payments | 775 | 254 |
| Trade and other payables | 25,441 | 17,234 |
Other provisions relate to employer taxes due in relation to employee share plan awards of $490,000 (FY24: $512,000). There is a corresponding receivable of $333,000 included in other debtors (FY24: $218,000). Timing of the use of this provision is entirely dependent on employees requesting to exercise share awards.
- Subsequent events
On 29th August 2025, the Group entered into a new unsecured Revolving Credit Facility ('RCF') on improved terms, for a further 3 years, with the option to extend for two further one-year terms. This new $100m facility consolidates the previous term loan and RCF, is at lower interest rates than the previous facilities, and provides a further $100m accordion facility.
15. Alternative performance measures
The Group's performance is assessed using a number of financial measures which are not defined under IFRS and are therefore non-GAAP (alternative) performance measures.
The Directors believe these measures enable the reader to focus on what the Group regard as a more reliable indicator of the underlying performance of the Group since they exclude items which are not reflective of the normal course of business, accounting estimates and non-cash items. The adjustments made are consistent and comparable with other similar companies. Alternative performance measures may be viewed as having limitations due to certain items being excluded that would be included in GAAP measures.
Adjusted EBITDA
Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, exceptional items and share based payments.
| 2025 | 2024 | ||
| $'000 | $'000 | ||
| Operating profit | 25,252 | 19,734 | |
| Depreciation of property, plant and equipment | 2,826 | 3,293 | |
| Amortisation of intangible assets - other | 10,462 | 9,169 | |
| Amortisation of intangible assets - acquired intangibles | 20,921 | 20,921 | |
| Share based payments | 5,695 | 4,487 | |
| Exceptional costs | 102 | 675 | |
| Adjusted EBITDA | 65,258 | 58,279 |
Adjusted earnings per share ("EPS")
Adjusted earnings per share ("EPS") calculations allow for the tax adjusted acquisition costs and share related transactions together with amortisation on acquired intangibles via business combinations. See Note 7 for the calculation.
Operating Cash Conversion
Operating Cash Conversion is calculated as cash generated from operations (as per Note 11), adjusted to exclude cash payments for exceptional items and movements in cash held on behalf of customers, divided by adjusted EBITDA.
| 2025 | 2024 | ||
| $'000 | $'000 | ||
| Cash generated from operations (Note 11) | 69,595 | 53,703 | |
| Total exceptional items | 102 | 675 | |
| Movement in amounts held on behalf of customers (Note 11) | (8,046) | (2,170) | |
| Accrued exceptional items at the start of the year paid in the current year | - | 92 | |
| Accrued exceptional items at the end of the year | (102) | - | |
| Cash generated from operations before exceptional items | 61,549 | 52,300 | |
| Adjusted EBITDA | 65,258 | 58,279 | |
| Operating Cash Conversion | 94.3% | 89.7% |
Adjusted PBT
Adjusted PBT refers to profit before tax adjusted for exceptional items and amortisation of acquired intangibles.
| 2025 | 2024 | ||
| $'000 | $'000 | ||
| Profit before taxation | 23,979 | 15,747 | |
| Amortisation of intangible assets - acquired intangibles | 20,921 | 20,921 | |
| Exceptional items | 102 | 675 | |
| Adjusted PBT | 45,002 | 37,343 |
Net cash/ (bank debt)
Net cash/ (bank debt) refers to net balance of short term bank debt, long term bank debt and cash and cash equivalents.
| 2025 | 2024 | ||
| $'000 | $'000 | ||
| Cash and cash equivalents | 55,921 | 34,589 | |
| Bank debt (Note 12) | (27,740) | (35,372) | |
| Net Cash/ (Bank debt) | 28,181 | (783) |
Total Sales
Total Sales refer to the total value of contracts signed in the year, consisting of New Sales and Renewals.
New Sales
New Sales refer to the total value of contracts with new customers or new products to existing customers at some time in their underlying contract.
Annual Recurring Revenue
Annual Recurring Revenue is the annual value of subscription license and related recurring revenues as at 30 June 2025 that are subject to underlying contracts and where revenue is being recognised at the reporting date.
Net Revenue Retention
Net Revenue Retention is the percentage of revenue retained from existing customers over the measurement period, taking into account both churn and expansion sales.
Revenue Growth
Revenue Growth is the increase in Revenue in the current year compared to the prior year expressed as a percentage of the previous year Revenue.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
FR USOARVNUKAUR