Craneware says revenue below market expectations on deferred contracts
Craneware PLC on Friday said it expects to report revenue and adjusted earnings below market expectations for the financial year that ended Tuesday, citing the deferral of some "significant" enterprise contracts.
Craneware shares dove 23% to 1,121.40 pence each on Friday morning in London. The company has a £381.4 million market capitalisation.
The Edinburgh-based healthcare financial software provider guided revenue between USD205 million and USD208 million, flat on USD205.7 million in financial 2025.
Craneware said it expects to post adjusted earnings before interest, tax, depreciation and amortisation of between USD65 million and USD67 million, similar to USD65.3 million a year prior.
"This change results from the timing of eligible 340B activity and the deferral of a small number of significant enterprise contracts, which are now expected to contribute during FY27," Craneware said.
Trading in the last weeks of the financial year was "materially impacted" by slower than expected conversion of 340B opportunities into revenue, Craneware said. The pace at which the opportunities translated into eligible drug purchases "slowed significantly" as pharmaceutical firms expanded and operationalised restrictions on the supply of some 340B-price medicines.
The 340B drug pricing scheme restricts the price that pharmaceutical firms can charge for certain drugs in exchange for having them eligible to be covered by the US federal government's Medicaid and Medicare programmes.
Chief Executive Officer Keith Neilson said: "Naturally we are disappointed not to have delivered the growth that we expected in FY26. While the short-term complexity in the pharmacy market has impacted the year, the long-term opportunity remains intact.
"This reinforces our strategy of expanding beyond software and analytics into technology-enabled operational transformation that helps customers realise the opportunities identified by the group's platform, and this is a continuing area of focus for our innovation efforts. We believe this strengthens both our customer relationships and our long-term growth opportunity, as healthcare providers increasingly seek trusted partners capable of combining data, workflow automation and operational expertise to deliver measurable financial outcomes.
"Our role is evolving from helping customers identify opportunity to helping them realise it. We continue to benefit from high levels of customer retention and cash generation, providing us with a strong financial foundation to execute on our strategy."
Craneware expects to publish its annual results in September.
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