Craneware plc (CRW) 2020年年度報告「AIM」.pdf

《Craneware plc (CRW) 2020年年度報告「AIM」.pdf》由會員分享，可在線閱讀，更多相關《Craneware plc (CRW) 2020年年度報告「AIM」.pdf（92頁珍藏版）》請在三個皮匠報告上搜索。

1、Cranewareplc AnnualReport2020Cranewareplc AnnualReport2020Helping healthcare providers further their mission through optimal financial performanceTable of ContentsFinancial and Operational Highlights 1Craneware Solutions 2Chairmans Statement 4Strategic Report:Operational Review 5Strategic Report:Fin

2、ancial Review 7Strategic Report:Key Performance Indicators and Principal Risks and Uncertainties 12Strategic Report:Section 172(1)Statement 16Stakeholder Engagement 19Directors,Secretary,Advisors and Subsidiaries 26Board of Directors 27Directors Report 29Corporate Governance Report 35Remuneration Co

3、mmittees Report 45Independent Auditors Report to the Members of Craneware plc 53Consolidated Statement of Comprehensive Income for the year ended 30 June 2020 58Statements of Changes in Equity for the year ended 30 June 2020 59Consolidated Balance Sheet as at 30 June 2020 60Company Balance Sheet as

4、at 30 June 2020 61Statements of Cash Flows for the year ended 30 June 2020 62Notes to the Financial Statements 631Cranewareplc AnnualReport2020$71.5m RevenueQuick Facts Financial$25.2m Adjusted EBITDA1$47.9m Cash15p Final Dividend65.4 Adjusted EPS2$19.3m Profit before taxFinancial and Operational Hi

5、ghlightsFinancial Revenue of$71.5m(FY19:$71.4m)Adjusted EBITDA1 increased 5%to$25.2m(FY19:$24.0m)Profit before tax increased 5%to$19.3m(FY19:$18.3m)Basic adjusted EPS2 increased 3%to$0.654(FY19:$0.633)and adjusted diluted EPS increased to$0.644(FY19:$0.620)Basic EPS increased 12%to$0.628(FY19:$0.561

6、)and diluted EPS increased 13%to$0.619(FY19:$0.550)Three Year Total Visible Revenue3 of$200.1m(FY19 same 3 year period:$197.5m)Operating cash conversion3 at 92%of Adjusted EBITDA(FY19:63%)Cash at year-end of$47.9m(FY19:$47.6m)after having returned$9.1m to shareholders via dividends Proposed final di

7、vidend of 15p per share(18.45 cents)(FY19:15.0p,19.05 cents)giving a total dividend for the year of 26.5p per share(32.60 cents)(FY19:26.0p,33.02 cents)1 Adjusted EBITDA refers to earnings before interest,tax,depreciation,amortisation,exceptional items and share based payments.2 Adjusted Earnings pe

8、r share(EPS)calculations allow for the tax adjusted acquisition costs and share related transactions together with amortisation on acquired intangible assets.3 Refer to the Financial Review section of the Strategic Report for further details.Operational Rapid implementation of our business continuit

9、y plan and the transition of employees to remote working with minimal disruption to customers Total Sales 4 for the year of$65.4m(FY19:$63.1m)Total Sales to 31 March 2020 tracking 30%ahead of the same period in FY19,impacted in the final quarter by COVID-19 Sales of Trisus Enterprise Value Platform

10、products represented 14%of New Sales in the year(FY19:13%)Healthy sales mix,with 90%of sales being to existing customers or new hospitals within existing healthcare system customers,demonstrating the successful execution of our land and expand strategy Continued investment in R&D and innovation to c

11、apitalise on growing market opportunity4 Total Sales refers to the total value of contracts signed in the year.202020192016201720180102030405060708049.857.867.171.471.5051015202524.025.215.918.021.6202020192016201720180102030405060702020201920162017201863.365.442.951.460.22Cranewareplc AnnualReport2

12、020Software that automatically uploads chargemaster changes to the patient billing system for accurate billing.Integration for Chargemaster Management_Web-based,mobile-friendly supplies lookup application available in Trisus Supply or Online Reference Toolkit.Supplies Assistant enables providers to

13、access Cranewares proprietary supply master catalog and quickly and correctly code expensive implants and devices.Supplies AssistantSaaS solution for providers with less than$44 million in operating expenses to perform chargemaster analysis,and efficiently optimise revenue,charge compliance and codi

14、ng integrity.Reference PlusWeb-based and mobile-friendly application for reducing risk by providing access to reference and regulatory resources.Online Reference ToolkitSaaS solutions for managing physician group KPIs,charges,codes,RVUs,fee schedules,and related informationPhysician Revenue ToolkitS

15、aaS solution that simplifies the price modelling process,creating a repeatable,well-documented method to establish transparent,defensible and competitive pricing.Trisus Pricing Analyzer Utilises foundational data from the item master,OR file,purchase history,and chargemaster to identify data gaps be

16、tween the systems,ensuring every reimbursable supply,implant,and device is billed.Trisus SupplyImproves charge capture,pricing and cost management,while simplifying the process for ensuring drug coding and billing units are complete and compliant,and establishing and maintaining a connection between

17、 a providers pharmaceutical purchases and billing.Pharmacy ChargeLinkAutomated SaaS chargemaster management solutions for capturing optimal legitimate reimbursement for providers,while mitigating compliance risk.Chargemaster Toolkit is customisable for any organisation,from small community providers

18、 to large healthcare networks,and addresses the challenges that enterprise chargemaster data presents to hospitals by enabling all related chargemaster data to be viewed in one placeChargemaster ToolkitCraneware SolutionsPatient EngagementCharge Capture&PricingCraneware Value Cycle Solutions span fi

19、ve product families Patient Engagement,Charge Capture&Pricing,Claims Analytics,Revenue Recovery&Retention,and Cost&Margin Analytics.In addition,hospitals of all sizes and types rely on Cranewares Customer Success Management and other Professional Services to help deliver results that lead to improve

20、d financial outcomes.3Cranewareplc AnnualReport2020Integration for Chargemaster ManagementCraneware SolutionsPatient EngagementOur consultants provide onsite staffing and expertise to help hospitals achieve their financial goals.Customer Success Managers design future state operations,develop polici

21、es and procedures,train staff on operational tasks,and measure and report on success metrics information for each patient encounter.Customer Success Management and Consulting Services A cost analytics and resource efficiency platform that unites cost and operational information across the provider o

22、rganisation,delivering revenue,cost,and operational information for each patient encounter.Trisus Healthcare IntelligenceCraneware has the experienced staff needed to review denials,write successful appeals and overturn improper denials.Appeals ServiceA comprehensive,web-based audit management appli

23、cation that empowers healthcare organisations to manage government and commercial audits from one central location.InSight AuditAnalyses,tracks,trends and reports on denial data,providing workflow for expediting repair and resubmission of denied claims.InSight DenialsSoftware built on Cranewares Tri

24、sus platform that automates claim and coding reviews to identify missed charges,billing errors,and categorise areas of risk to help ensure that all legitimate revenue is captured.Trisus Claims InformaticsSimplifies the process of providing patient bill estimates for inpatient and outpatient services

25、 to improve up-front collections and reduce bad debt.Patient Charge Estimator_A SaaS solution that provides medical necessity validation for all major U.S.payors and Advance Beneficiary Notice(ABN)creation.The software helps reduce accounts-receivable days by preventing medical necessity denials,and

26、 facilitates payment communication with patients.InSight Medical NecessitySolutions for healthcare providers to optimise financial performance.Customer Success Management Cost&Margin AnalyticsRevenue Recovery&RetentionClaims AnalyticsCraneware Value Cycle Solutions span five product families Patient

27、 Engagement,Charge Capture&Pricing,Claims Analytics,Revenue Recovery&Retention,and Cost&Margin Analytics.In addition,hospitals of all sizes and types rely on Cranewares Customer Success Management and other Professional Services to help deliver results that lead to improved financial outcomes.4Crane

28、wareplc AnnualReport2020extensive industry knowledge and Board experience will be extremely valuable in helping the Group fulfil its growth ambitions.The Company also wished all the best to outgoing Chairman,George Elliott,who stepped down from his position following the AGM,after over 12 years outs

29、tanding service.As previously announced,current long-standing Non-Executive Director Ron Verni will not be standing for re-election at the forthcoming AGM,due to his length of tenure with the Company,and we thank him for all his guidance and support.Following the period end,in August 2020,the Compan

30、y successfully launched a placing to take advantage of a small number of identified acquisition opportunities.Despite the placing seeing strong oversubscription from both new and existing investors,the Board ultimately took the difficult decision not to proceed with the proposed fundraise following

31、the news that the principal acquisition target had agreed terms with a third party.Whilst a disappointing outcome,we are very grateful for the support shown by our existing and those new potential investors.The potential for accelerated growth through M&A activity remains in place and continues to b

32、e assessed by the Board.The Groups strong balance sheet and undrawn debt facilities provide the Company with the ability to continue its investment strategy whilst executing on any market opportunities that arise.Whilst acquisitions are very much part of our long-term strategy we are still first and

33、 foremost focused on delivering against our considerable organic growth opportunity.Despite the challenges we have had to navigate over the course of the year,and into the current financial year,the Group continues to make strides towards its long-term vision of becoming a leader in Value Cycle soft

34、ware solutions to US hospitals.The pandemic has reinforced the requirement for useable financial and operational data,to enable healthcare providers to respond swiftly to change and continue to deliver outstanding healthcare services,while ensuring the financial health of their operations.Cranewares

35、 long-term objective remains intact:to provide the tools to support US healthcare providers in their mission to deliver increased value in healthcare.The encouraging sales pipeline we have seen over the year combined with the significant market opportunity give me confidence that the Group is on the

36、 right trajectory for continued and sustained growth.I would like to thank all employees across the UK and US for their unwavering support and hard work throughout the year,especially during these particularly trying times.It is evident I have joined a company with a strong set of core values,clear

37、vision and supportive customer base,and I look forward to being part of its growth journey going forward.Will Whitehorn Chairman 18 September 2020This is the first full year I am reporting on as Chairman,and whilst it has not been the year we would have been anticipating 12 months ago,it has been a

38、year of growth,development and learning.The pressures faced by the worlds healthcare industries since the outbreak of the COVID-19 pandemic have been considerable,and I am proud of the support the Craneware team has provided to our customers in the US during this time.COVID-19 had an unprecedented i

39、mpact on our customers,with their operations disrupted and repurposed in order to maximise capacity to deal with the incredibly high demand for emergency services.During this time,our efforts were focused on supporting our customers whilst they met the needs of their communities and managed the impa

40、ct,to them,of the cessation of elective procedures and associated income.The swift implementation of our business continuity plan and the transition of employees to remote working enabled the Group to continue operating with minimal disruption to customers and I would like to thank all employees for

41、 their utmost professionalism and commitment.In the first nine months of the year to 31 March 2020,Total Sales were tracking over 30%higher than in the prior year,demonstrating a considerably improved performance and strong sales of both our existing and newly developed cloud-based Trisus applicatio

42、ns.In addition to the impact to our customers,the travel restrictions and lockdowns imposed due to COVID-19 particularly impacted our sales and professional services teams ability to close sales,deliver their projects and complete renewals with the associated up-sales in the final quarter.Despite th

43、is challenging environment,Total Sales for the year were ahead of the prior year at$65.4m(FY19:$63.1m).Recognised revenue was consistent with the previous year at$71.5m(FY19:$71.4m)and adjusted EBITDA increased to$25.2m(FY19:$24.0m),reflecting both the impact of IFRS 16 and the Groups ongoing carefu

44、l management of costs and reduction in certain discretionary spend,such as travel costs in the final quarter.Capitalised R&D in the period decreased to$9.3m(FY19:$9.6m)despite an overall increase in our R&D spend,in line with our continued commitment to invest in innovation,to capture the sizeable o

45、pportunity ahead.Although it is clear COVID-19 held back the Groups financial growth in the final quarter of the year,there are many positives to point to in the financials with customer churn remaining very low,at less than 10%,and the Group exiting the year with Total Visible Revenue for the next

46、three years of$200.1m.We maintain a strong balance sheet with no debt and cash reserves consistent with the end of the previous year of$47.9m (30 June 2019:$47.6m).In the second half of the year,we welcomed Alistair Erskine and David Kemp to the Board as Independent Non-Executive Directors.Both brin

47、g significant experience and expertise to the Board and I am confident their blend of Chairmans Statement5Cranewareplc AnnualReport2020outcomes.A hospitals ability to participate in a value-based care system is dependent on the collection of granular data and the use of insightful analytics to under

48、stand the opportunity to deliver better value.As a result,the North American healthcare analytics market is forecast to grow 29.54%CAGR from US$3bn in 2020 to US$11bn1 by 2025.This presents a large,growing opportunity for the Group given Cranewares specialism in helping hospitals better understand a

49、nd manage revenue and cost through data-driven solutions.Growth StrategyCraneware develops and provides financial and operational optimisation software and analytics,for US hospitals and clinics,using aggregated anonymised data.Our on-premise and cloud-based software solutions sit at the heart of ou

50、r customers operations,helping them to optimise their financial performance.We are helping to drive a shift in healthcare delivery and reimbursement through the use of data with powerful and insightful analytics.Our long-term strategic aim is to become ubiquitous in US hospitals.Functioning as the i

51、ntelligence layer sitting across all other administrative and financial systems,we aim to deliver the information required to improve financial and operational performanceTo date,our growth has been driven through increases in market share and product set penetration(land and expand).In recent years

52、,we have invested in the development of a cloud-based platform;Trisus,a sophisticated cloud data aggregation and intelligence platform which will allow us to migrate our existing products to the cloud,leverage our data assets to expand our offering,integrate third party solutions to the platform and

53、 benefit from the scalability of cloud-technology.Three Growth PillarsOur growth strategy has three fundamental growth pillars:The transition of our customers to cloud-based versions of our existing on-premise solutions,to act as a gateway to the benefits and additional applications on the Trisus pl

54、atform.To continue to enhance the capabilities of the platform through the addition of new technology layers and applications,developed through both internal R&D and selective M&A.Our investment in R&D will continue to grow,in line with revenue growth,as we fulfil our vision for Trisus.To grow our c

55、ustomer footprint,through increasing the attractiveness of our offering and acquiring non-overlapping customers,which in turn to provides further cross-sale opportunities.Our Trading update provided on 8 July 2020 referred to the bravery and dedication of our customers,who were and are at the forefr

56、ont of dealing with the pandemic;and we again pay tribute to them for selflessly serving their communities.The Groups continued progress made throughout this year,despite challenges imposed by the COVID-19 pandemic in the final quarter,was reassuring.While we as a business were relatively insulated

57、from the direct impacts of the pandemic,our customers were on the front-line.Supporting them and the phenomenal work their teams have done has been,and will continue to be,our top priority.Following a strong first nine months sales performance,the impact of COVID-19 delayed our return to growth,howe

58、ver the strength of our underlying recurring revenue model and high levels of cash conversion place the Group in a strong ongoing financial position.We continue to make excellent progress on the execution of our growth strategy,and I am pleased to report we are on track for all our product suite to

59、be live on the Trisus platform during 2021.This is a significant milestone that we believe will be key to unlocking the benefits of the Trisus platform for both our customers and Craneware.Our purpose,to profoundly impact healthcare by improving healthcare providers operational efficiency and margin

60、,so they can continue investing in providing quality care for their communities has never been more important.The global pandemic has highlighted the importance of usable financial and operational data and our customers continue to take steps to create further resilience across their financial opera

61、tions.We are committed to partnering with them by providing the platform,regulatory information and data to enable them to do so.We believe that both the Group and our customer base are strongly placed to deal with the future impacts of the pandemic and for our products to be part of the solution in

62、 terms of helping hospital preparedness.MarketThe move to value-based careThe US healthcare market continues to transition from a fee-for-service reimbursement model,towards value-based care,aiming to redress the current imbalance in the US between spend and outcomes.The US has the highest health sp

63、ending per capita in the world with one of the lowest life expectancies in the developed world.Payors(insurance companies,charities,individuals,and Government)are exerting considerable pressure on US Healthcare providers to deliver better health outcomes and manage cost.This has brought pressure to

64、move towards value-based care a healthcare delivery model in which providers,including hospitals and physicians,are paid based on patient health Strategic Report:Operational Review1 North American Healthcare Analytics by Market Data Forecasts.6Cranewareplc AnnualReport2020Trisus Chargemaster and Tri

65、sus PharmacyWe are excited to now be at the stage to start the roll out of the Trisus versions of our two core product offerings:Trisus Chargemaster,the upgrade version of our Chargemaster Toolkit,and Trisus Pharmacy,a new product which in stage one will sit alongside our on-premise Pharmacy ChargeL

66、ink,and subsequently be expanded to include all Pharmacy ChargeLink functionality.We will commence the staged migration of our customer base to Trisus Chargemaster from September this year with customers able to elect,via their existing installation,whether to remain using the on-premise for a perio

67、d of time,or switch to the cloud version.Both Pharmacy ChargeLink and Trisus Pharmacy will be available to new and existing customers for the next year,with customers able to select which application best suits their needsSales and Marketing As highlighted previously,the Company enjoyed positive sal

68、es activity in the first nine months of the year,with Total Sales tracking 30%ahead of the prior year.We signed contracts with hospitals of all sizes and for all segments of our product offering,with a particularly strong performance from Chargemaster Toolkit and encouraging sales of Trisus applicat

69、ions.Expansion Sales,being new sales made either to existing hospitals,or to new hospitals within an existing hospital system customer,accounted for the biggest component of new sales,representing 90%.This demonstrates our ability to deliver on our“land and expand”strategy,cross selling further solu

70、tions to our extensive customer base,driven by compelling ROIs for our customers.Consistent with the prior year,Trisus products represented 14%of our New Sales in the year(FY19:13%).All customers who have signed new contracts for Chargemaster Toolkit in the year have an understood migration plan to

71、Trisus Chargemaster,which will be rolled out through the course of 2021,and recognise this as an easy entry to the Trisus platform.An increased number of hospitals renewed their contracts during the year,which when netted off against those lost in the period resulted in a consistent customer retenti

72、on rate of over 90%.Many of the renewals due in Q4 which were delayed due to COVID-19 travel restrictions have now successfully taken place.The Trisus platform,our wealth of proprietary data collected over our 20 years of servicing the US healthcare industry and our breadth of customer base differen

73、tiate us from other healthcare solutions vendors,providing substantial benefits for our customers and making a meaningful impact on the value of healthcare as a whole.This will result in extensive improvements to the financial and operational effectiveness of US hospital providers and thereby drive

74、significant customer demand for Craneware solutions in the future.We are on track to transition all our core products to the Trisus platform during 2021,meaning we are near the completion of the fundamental building blocks of the next stage of our growth strategy.M&AWhile organic growth remains a pr

75、iority,as we have publicly stated,we continue to evaluate the market and will continue to pursue strategically aligned companies that will accelerate our growth strategy.This is underpinned by four key acquisition criteria of which target companies must fit into at least one,being:the addition of da

76、ta sets;the extension of the customer base;the expansion of expertise;the addition of applications.In evaluating acquisition opportunities,the Board implements a strong valuation discipline seeking to maintain its prudent approach to preserving balance sheet strength and efficiency for the long-term

77、.Targets that are profitable with recurring revenue models that provide earnings accretion within the first 12 months of ownership are prioritised.Product RoadmapWe are executing on a roadmap to migrate all our solutions onto the Trisus platform and continue to look for innovative combinations of ou

78、r data sets into new unique product offerings.We are particularly pleased to note how both our existing customer base and the wider healthcare provider market have responded positively to the technological evolution of the Craneware solution set,delivered on the Trisus platform,with over 300 of our

79、customers already utilising one or more of the native Trisus applications and almost the entirety of the remainder connecting to it via the Trisus Bridge;this is the first step for significant migration to the platform from within our user baseStrategic Report:Operational Review Contd.7Cranewareplc

80、AnnualReport2020Underlying these results are the total value of contracts signed in the year(“Total Sales”).As detailed,whilst Total Sales had been tracking 30%above the prior year,we ultimately closed the year marginally ahead at$65.4m(FY19:$63.1m).As a result of our business model,“sales”and“reven

81、ue”have very different meanings and are not interchangeable.In fact,only a small proportion of the revenue resulting from the sales made in the year is recognised in the current years reported revenue,instead the vast majority of the associated revenue is recognised in future years,which delivers th

82、e Groups long-term visibility over future revenues.The Annuity SaaS Business ModelThe new contracts we sign with our customers provide a licence for the customer to access specified products throughout their licence period.A new customer will,on average,sign a four year contract and this average is

83、calculated up to the first renewal point/break clause for any specified product.At the end of an existing customers initial licence period,or at a mutually agreed earlier date,we look to renew these contracts with our customers.By renewing these contracts,we are sustaining our underlying annuity rev

84、enue base,which means sales of new products to existing customers or sales to new hospital customers are adding to this annuity revenue.Under the Groups business model,we have always recognised software licence revenue and any minimum payments due from our other route to market contracts evenly over

85、 the life of the underlying contract term.In addition to the licence revenues recognised in any year,we also expect between 10%to 20%of revenue recognised to be from services.The services we provide generally accompany a new licence sale and are focused on embedding the software within the customers

86、 core processes to maximise the value the software can bring to them.This service is typically separately identifiable from the licence and the associated revenue is recognised as we deliver the service to the customer,usually on a percentage of completion basis.However,the nature and scope of these

87、 engagements will vary depending on both our customers needs and which of our solutions they have contracted for.As a result,the period over which we deliver the services and consequently recognise the associated revenue will vary.Since the first Financial Review we published as a listed company bac

88、k in 2008,we have regularly referred to our prudent business model,the Annuity SaaS business model,which is focused on long-term sustainable growth;our healthy,cash positive balance sheet and our prudent approach to cost management whilst balancing investment for the future.These concepts,which we h

89、ave followed throughout our growth as a Group,have served us well as we have navigated the global uncertainty the COVID-19 pandemic has caused.The Trading update provided on 8 July 2020 outlined,how,when considering the financial performance of the Group,the year ended 30 June 2020 should be viewed

90、in two parts.While the first nine months of trading saw Total Sales tracking over 30%ahead of the prior year,the final three months saw our teams activities pivot towards the enhanced support of our customers(and non-customers)as they focused on their mission.There is no doubt COVID-19 has impacted

91、the financial results for the current year.For example,the travel restrictions and lockdowns imposed particularly impacted our sales and professional services teams ability to close sales,deliver their projects and complete renewals with the associated up-sales in the final quarter.However,the conce

92、pts I refer to above combined with the hard work and dedication of our employees mean we are able to report on a robust set of financial results and a solid foundation for future growth as hospitals need for usable financial and operational data intensifies as they look for further resilience across

93、 their financial operations post the pandemic.Revenues remained consistent at$71.5m(FY19:$71.4m)whilst prudent cost management and reductions in certain spend,such as travel,saw adjusted EBITDA increase 5%to$25.2m(FY19:$24.0m).We have also closed the year with$47.9m(FY19:$47.6m)of cash reserves and

94、visible revenue to be recognised over the next three years of$200.1m(FY19 same 3 year period:$197.5m).Strategic Report:Financial Review8Cranewareplc AnnualReport2020 This Three-Year Visible Revenue metric includes:future revenue under contract;revenue generated from renewals(calculated at 100%dollar

95、 value renewal);and other recurring revenue.Future revenue under contract is,as the title suggests,subject to an underlying contract and therefore once invoiced will be recognised in the respective future years(subject to future collection risk that exists with all revenue).Renewal revenues are cont

96、racts coming to the end of their original contract term(e.g.four years)and will require their contracts to be renegotiated and renewed for the revenue to be recognised.To appropriately represent the quantum of revenue within this category we present the total of revenue subject to renewal(i.e.100%of

97、 dollar value).The final category other recurring revenue,is revenue that we would expect to recur in the future but is monthly or transactional in its nature and as such there is increased potential for this revenue not to be recognised in future years,when compared to the other categories.To ensur

98、e the representation of renewal revenues are reasonable in our visible revenue KPI,we monitor the long-term average to ensure it remains above 100%.In assessing this long-term average,we would normally expect this metric to be between 85%and 115%,but recognise a result Sales,Revenue and Revenue Visi

99、bility Our Total Sales is broken down into the total value of contracts with new customers or new products to existing customers at some time in their existing contract(“New Sales”)and the total value of contracts of customers renewing their existing products at the end of their current contract ter

100、ms(“Renewals”).The table below shows the total value of contracts signed in the relevant years,split between New Sales and Renewals and how these sales have translated into reported revenue in the corresponding year.As the majority of the revenue resulting from sales in any one year is recognised ov

101、er future years,the financial statements do not fully reflect the valuable asset that is contracted,but not yet recognised,revenue.As such,at every reporting period,the Group presents its“Revenue Visibility”.This KPI identifies revenues which we reasonably expect to recognise,as of the first day of

102、the new Fiscal Year,over the next three-year period,based on sales that have already occurred.The Three-Year Revenue Visibility KPI is a forward looking KPI and therefore will always include some judgement.To help assess this,we separately identify different categories of revenue to better reflect a

103、ny inherent future risk in recognising these revenues.Strategic Report:Financial Review Contd.*As the Group signs new customer contracts for between three to nine years,the number and value of customers contracts coming to the end of their term(“renewal”)will vary in any one year.This variation alon

104、g with whether customers auto-renew on a one year basis or renegotiate their contracts for up to a further nine years,will impact the total contract value of renewals in that year.Reported RevenueNew SalesRenewals*FY19FY20FY16FY17FY180255075Revenue$mFY19FY20FY16FY17FY180255075$mNew SalesFY19FY20FY16

105、FY17FY180255075$mRenewals9Cranewareplc AnnualReport2020Gross MarginsTypically,we expect the gross profit margin to be between 90%to 95%reflecting the incremental costs we incur to obtain the underlying contracts,including sales commission contract costs which are charged in line with the associated

106、revenue recognition.The gross profit for FY20 was$67.0m(FY19:$67.0m)representing a gross margin percentage of 94%(FY19:94%)which continues to be within our historical range.This reflects the correct matching of these incremental costs with the associated revenue being recorded.EarningsThe Group pres

107、ents an adjusted earnings figure as a supplement to the IFRS based earnings figures.The Group uses this adjusted measure in its operational and financial decision-making as it excludes certain one-off items,so as to focus on what the Group regards as a more reliable indicator of the underlying opera

108、ting performance.We believe the use of this measure is consistent with other similar companies and is frequently used by analysts,investors and other interested parties.Adjusted earnings represent operating profits excluding costs incurred as a result of acquisition and share related activities(if a

109、pplicable in the year),share related costs including IFRS 2 share-based payments charge,interest,depreciation and amortisation(“Adjusted EBITDA”).outside of this range(both above and below)in a single year is unlikely to materially impact the long-term average renewal rate.We reported at the interim

110、 results this metric was below this range at 73%following the loss of a larger customer.Whilst we have seen this metric increase to 80%for the full year,the impact on sales since March caused it to remain marginally below our expected range,with certain contract renewal discussions still ongoing.The

111、 Groups total visible revenue for the three years as at 30 June 2020(i.e.visible revenue for FY21,FY22 and FY23)identifies$200.1m of revenue which we reasonably expect to benefit the Group in this next three year period.This visible revenue breaks down as follows:future revenue under contract contri

112、buting$141.9m of which$62.7m is expected to be recognised in FY21,$47.4m in FY22 and$31.8m in FY23;revenue generated from renewals contributing$57.0m;being$6.2m in FY21,$17.6m in FY22 and$33.2m in FY23;other revenue identified as recurring in nature of$1.2m.These future revenues,with customers conti

113、nuing to renew their contracts with us,expand beyond the three-year time horizon we report on,creating a foundation of annuity revenue.This annuity revenue provides the foundation for future financial growth as well as giving increased certainty to the Board when making the annual assessment for the

114、 Viability Statement.Strategic Report:Financial Review Contd.010203040506070$m62.76.20.447.417.60.431.833.20.4ContractedRenewalsOther recurring revenueFY23FY21FY22Three Year Visible RevenueAs at 30 June 202010Cranewareplc AnnualReport2020maintaining and enhancing our current product offerings and en

115、suring they remain market-leading.As a result of this investment the total cost of development in the year was$21.6m(FY19:$20.0m),a 10%increase which is ahead of our revenue growth and reflective of the opportunities in the market for our products.From this total investment we have capitalised proje

116、cts that will bring future economic benefit to the Group.With the significant increase in our investment into our development and product management teams we have ensured costs relating to expanding and training of the new teams are not capitalised.As a result,the total amount capitalised in the yea

117、r reduced to$9.3m(FY19:$9.6m).The amounts we capitalise represent the cash reserves we have utilised in the year,to invest in our future.This is an efficient and cost-effective way to further build out our Value Cycle strategy.We expect to see both the levels of development expense and capitalisatio

118、n continue as we progress with building out this solution set.As specific products are made available to relevant customers,the associated amounts capitalised are charged to the Groups income statement over their estimated useful economic life,thereby correctly matching costs and the resulting reven

119、ues.In assessing the useful life to correctly match costs and resulting revenues,we must continually apply careful judgement based on past experience,advances in product development and also best practice.During the year,we have re-assessed the estimated useful life of our Intellectual Property(more

120、 specifically the Trisus enterprise suite of products),to be between 5 and 10 years(FY19:5 years).As this is a change in estimate,it has been applied on a prospective basis.The impact of this change has been a reduction in the amortisation charge in the year of$977,008,with the total amortisation ch

121、arge in the year being$3.2m(FY19:$2.9m).Cash and Bank FacilitiesCash generation and maintaining cash reserves have always been a focus of the Group,but never more so than through this recent period.Our ability to generate cash has enabled us to navigate the challenges the pandemic brought without th

122、e need to rely on government assistance in either geography.We have also been able to provide targeted support to our customers,maintain our investment in our business,continue our investment in development and return funds to shareholders via dividends.We have always targeted 100%conversion of our

123、earnings into cash.In the current year,we were able to use our cash reserves to provide targeted support to customers who requested it,via payment plans or deferred payment terms and in doing so recognised we were unlikely to meet this target in the current year.We did,however,achieve a 92%conversio

124、n of our adjusted EBITDA to cash.Our customers continue to make payments post year end,including those we have agreed payment plans with,and as a result we have collected a further$10.6m.During the year we have returned$9.1m to our shareholders via dividends.As a result of all these factors,we retai

125、n cash reserves of$47.9m (FY19:$47.6m).No costs were identified as exceptional in the current year.However,in the prior year we incurred$1.2m of professional and other fees relating to a significant proposed acquisition that ultimately the Board decided not to enter into in that year,as such these c

126、osts were adjusted from earnings in presenting Adjusted EBITDA in that year.Adjusted EBITDA has grown in the year to$25.2m(FY19:$24.0m)an increase of 5%.This reflects an Adjusted EBITDA margin of 35%(FY19:34%).This is consistent with the Groups continued approach to making investments in line with t

127、he revenue growth,prudent cost management and reductions in certain spend,such as travel during the pandemic.IFRS16“Leases”In the year,we have adopted IFRS 16 Leases(using the modified retrospective application approach).Under this approach,the impact of initially applying the standard has been refl

128、ected as an adjustment to the opening balance of retained earnings and,as such,the prior period comparatives have not been restated.However,in summary,IFRS 16 requires leases to be recognised as an asset and a corresponding liability.At transition,leases previously classified as operating leases(und

129、er IAS 17)have been measured at the present value of the remaining lease payments,discounted at an incremental borrowing rate.As a result of adopting IFRS 16,during the period,the Group charged$916,978 of depreciation and$94,193 of interest costs against profit.Under IAS 17,a charge of$726,413 would

130、 have been made.Operating ExpensesOur Purpose is to profoundly impact healthcare by improving healthcare providers operational efficiency and margin,so they can continue investing in providing quality care for their communities.Through our Value Cycle strategy,the Trisus platform and the application

131、s that sit on it,we are supporting our customers as they tackle the challenges of a market that continues to evolve towards value-based economics and the new reimbursement models.If we are to deliver on our potential to both support our customers in this evolving market place and address the market

132、opportunity available to us,we must ensure we are building a scalable business that can meet the future challenges our growth will bring.The reduction in net operating expenses(to Adjusted EBITDA)to$41.8m(FY19:$43.0m)reflects continued prudent cost control and reductions in travel spend from March o

133、nwards.The Group always looks to invest in all areas of the business in line with revenue growth,and we have adhered to this principle through the current year.We have remained highly cash generative and as a result we have continued to use our cash reserves(after returning funds to shareholders via

134、 dividends)to invest in our future.Product innovation and enhancement continue to be core to this future and our ability to achieve our potential.As such we have continued to invest significant resource in this area as we build out the Trisus platform and the portfolio of products that will be part

135、of this platform.We continue our Build,Buy or Partner strategy to build out this portfolio of products,recognising Build is often the best way forward.We use our Agile development methodology to develop innovative new products whilst Strategic Report:Financial Review Contd.11Cranewareplc AnnualRepor

136、t2020Strategic Report:Financial Review Contd.This significant level of cash reserves and our balance sheet strength allows us to fund acquisitions should suitable opportunities arise.To supplement these reserves,the Group retains a funding facility from the Bank of Scotland of up to$50m.Whilst no dr

137、aw down of this facility occurred in the year,the Group continues to investigate strategic opportunities to add to the Value Cycle strategy.Balance Sheet The Group maintains a strong balance sheet position.Intangible assets have increased by$6.4m to$36.8m(FY19:$30.4m)primarily as a result of capital

138、ised development costs in the year net of the amortisation charged.The level of trade and other receivables has increased in comparison to the prior year.This is a result of the factors identified above that impacted our cash collection in the year.Deferred income levels reflect the amounts of the r

139、evenue under contract that we have invoiced and/or been paid for in the year,but we have yet to recognise as revenue.This balance is a subset of the total visible revenue we describe above and reflected through our three year visible revenue metric.Deferred income,accrued income and the prepayment o

140、f sales commissions all arise as a result of our Annuity 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 Co

141、mprehensive 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 regards to how we account for our contracts.CurrencyThe functional currency for the Group,and cash reserves,is US doll

142、ars.Whilst the majority of our cost base is US-located and therefore US dollar denominated,we have approximately one quarter 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 t

143、o US dollar exchange rate,and where appropriate consider hedging strategies.The average exchange rate throughout the year being$1.2598 as compared to$1.2945 in the prior year.TaxationThe Group generates profits in both the UK and the US.The overall levels are determined by both the proportion of sal

144、es in the year and the level of professional services income recognised.The Groups effective tax rate remains dependent on the applicable tax rates in these respective jurisdictions.In the current year the effective tax rate has been affected by R&D tax relief of$0.5m(FY19:$0.4m)and share options is

145、sued and exercised in the year which reduced the tax charge by$0.8m(FY19:$0.4m).As such the current year effective tax rate is 13%(FY19:18%).EPSIn the year being reported adjusted EPS has seen the benefit of the increased levels of Adjusted EBITDA combined with the effective tax rate reported above,

146、partially offset by an increase in both the amortisation and share based payment charges,and as such has increased 3%to$0.654(FY19:$0.633)and adjusted diluted EPS has increased to$0.644(FY19:$0.620).DividendIn proposing a final dividend,the Board has carefully considered a number of factors includin

147、g the impact of the pandemic,the Groups trading performance,our current and future cash generation and our continued desire to recognise the support our shareholders provide.After carefully weighing up these factors,the Board proposes a final dividend of 15p(18.45 cents)per share giving a total divi

148、dend for the year of 26.5p(32.60 cents)per share(FY19:26p(33.02 cents)per share).Subject to approval at the Annual General Meeting,the final dividend will be paid on 15 December 2020 to shareholders on the register as at 20 November 2020,with a corresponding ex-Dividend date of 19 November 2020.The

149、final dividend of 15p 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 Companys Dividend Currency Election,or who register to do so by the close of business on 20 November 2020.The exact amount to be paid wi

150、ll be calculated by reference to the exchange rate to be announced on 20 November 2020.The final dividend referred to above in US dollars of 18.45 cents is given as an example only using the Balance Sheet date exchange rate of$1.2302/1 and may differ from that finally announced.Outlook While the dis

151、ruption and stress of the COVID-19 pandemic has eased in some areas,many healthcare providers continue to be under considerable pressure and while a second wholesale lockdown is unlikely,this situation is likely to continue.On the whole,hospitals now have increased clinical capacity and the focus ha

152、s shifted to ensuring robust operational and financial processes are in place to ensure their financial future.We have experienced strong sales momentum in Q1 and continue to have sales discussions with hospitals across the US.We are cautiously optimistic we are seeing the first signs of sales cycle

153、s slowly normalising;however,we remain cognisant of the ongoing macro uncertainties.Our passion and purpose is to impact healthcare profoundly by improving healthcare providers operational efficiency and margin,so they can continue investing in providing quality care for their communities.The challe

154、nges hospitals are currently facing,combined with the ongoing transition to value-based reimbursement,means this has never been more relevant,or important,and we will do all we can to support our customers through this time.We continue to benefit from a strong balance sheet and high levels of recurr

155、ing revenue,entering the new financial year with an annuity revenue base of over$65m,providing us with a strong foundation for future growth.Keith Neilson Chief Executive Officer 18 September 2020Craig Preston Chief Financial Officer 18 September 202012Cranewareplc AnnualReport2020Strategic Report:K

156、ey Performance Indicators and Principal Risks and UncertaintiesKey Performance Indicator ReviewRevenue Growth20202019Revenue$71.5m$71.4mGrowth0%6%Through the Groups Annuity SaaS revenue recognition model,underlying sales levels in the current year combine with prior years sales and continued high le

157、vels of customer retention,to increase the recurring revenue reported each year.The long-term nature of our contracts supports sustainable growth with the majority of revenue resulting from current year sales being recognised in future periods.Three Year Revenue Visibility20202019Three Year Revenue

158、Visibility$200.1m$197.5mThe Groups revenue recognition model means the full benefit of current years sales are not reflected in the current year financial statements.Instead,the vast majority of any new sales adds to the growth in the underlying annuity of recurring revenue.This is demonstrated thro

159、ugh the Groups Three Year Revenue Visibility KPI.This metric compares the growth in the three years contracted revenue,revenue subject to renewal and other recurring revenue,for the same three year period starting 1 July 2020.Full details of how this is calculated are detailed in the financial revie

160、w section of the Strategic Report.Adjusted EBITDA Growth20202019Adjusted EBITDA$25.2m$24.0mGrowth5%11%We take a measured approach to our investment,ensuring to invest to support the future growth of the Group.The continued revenue growth has allowed us to both continue and in certain areas accelerat

161、e this investment whilst delivering Adjusted EBITDA growth.By taking this approach,we aim to release additional investment,in line with revenue growth,with the focus on delivering profitable growth to all stakeholders.Adjusted EPS20202019Adjusted EPS65.4 cents63.3 centsGrowth3%5%Adjusted EPS growth

162、demonstrates the Groups overall profitability after taking into account the taxation in the year and any changes in share capital.The Group generates profits in both the UK and the US.The Groups effective tax rate remains dependent on the applicable tax rates in each respective jurisdiction.Total Sa

163、les20202019Total Sales$65.4m$63.1mTotal Sales represents the total value of contracts signed in the year.As the Group signs new customer contracts for between three to nine years,the number and value of customers contracts coming to the end of their term(“renewal”)will vary in any one year.This vari

164、ation,along with whether customers auto-renew on a one year basis or renegotiate their contracts for up to a further nine years,will impact the total sales value of renewals in that year.Cash20202019Cash$47.9m$47.6mThe Group continues to convert very high levels of the Adjusted EBITDA reported in th

165、e year into operating cash flows which,having returned$9.1m to shareholders by dividend during the year,has resulted in cash balances of$47.9m at 30 June 2020.Overall Operating cash conversion,at 92%in the year ended 30 June 2020,is below our current long-term target of 100%for the reasons explained

166、 in the Financial Review section on page 10.13Cranewareplc AnnualReport2020Strategic Report:Key Performance Indicators and Principal Risks and Uncertainties Contd.Principal Risks and Uncertainties To deliver continued sustainable growth,the Group recognises the need to minimise the likelihood and im

167、pact of key risks.These risks are both general in nature i.e.,business risks faced by all businesses,and more specific to the Group and the market in which it operates.Our approach to risk management is a key consideration to how we deliver long-term stakeholder value whilst protecting our business,

168、people,assets,capital and reputation.The Corporate Governance Report on pages 35 to 44 includes an overview of the Groups risk management and internal control systems,including details of the Groups Risk and Compliance Committee.The Board is very much aware that as a public company,reputational dama

169、ge is a risk and as such a key concern.Whilst the risks outlined in this report do not specifically detail the risk from reputational damage,the potential effects to our reputation are not under-estimated by the Board.The risks outlined here are those principal risks and uncertainties that are mater

170、ial to the Group.They do not include all risks associated with the Group and are not set out in any order of priorityCOVID-19The Strategic Report on pages 5 to 11 details the unprecedented impact COVID-19 has on our customers and their operations.It also details the financial and operational impact

171、that resulted to Craneware.Whilst the ongoing situation continues to evolve,we anticipate,based on what is currently known,under the current climate,that any further business impact to Craneware operations will not go beyond those identified in the Strategic Report and future impacts in these areas

172、are expected to be limited.We have continued to support our US hospital customers to assist them,where we can,with their challenges and adding value by ensuring they can maximise their reimbursements and maintain their financial stability.This in turn gives them the ability to better serve their com

173、munities.Additional support has been provided to our customers and non-customers with regular webinars updating the coding and legislation changes being implemented by the US Government.This provided information needed to ensure the correct reimbursements could be claimed for treatment of COVID-19 p

174、atients.Craneware took the decision in mid-March 2020 to implement our business continuity plan and move all of our office-based staff to remote home workers ahead of the Government guidelines.This decision was driven by the desire to protect and safeguard the well-being and health of our workforce

175、and allowing the continued support to our customers as they faced the challenge of dealing with COVID-19 patients in their hospitals.The Risk and Compliance Committee took responsibility for being the COVID-19 response Committee with the remit to enlist the assistance of colleagues with specific ind

176、ustry knowledge and expertise to assist the ongoing task of monitoring and information sharing to both employees and customers in the UK and in the US.The COVID-19 response committee ran weekly update calls to inform all employees of the changes in legislation in both jurisdictions and any policy ch

177、anges being implemented by Craneware.These sessions were informative and also provided question and answer sections to allow any concerns and queries to be answered.All new updates are conducted as and when significant changes occur.A dedicated section on the Groups intranet is being maintained with

178、 up to date information and the five stages of COVID-19 indicator,currently sitting at stage 2;mandatory work from home.As all office-based employees moved into a new working from home environment,various steps were taken to ensure the safety and wellbeing of these staff members.Craneware benefited

179、hugely from the experience of having a large percentage of the US workforce already being home based and therefore was able to pull on that experience to transition the newly reassigned office-based employees.With constant wellbeing articles and a check of facilities at home to provide a comfortable

180、 and ergonomically suitable workspace taken,employees were given the support needed to make this transition as smooth as possible.Employees were further supported through this period with the ability to work reduced hours to fit in with their personal circumstances.Data and cyber securityIssue:Secur

181、ity of customer,commercial,and personal data poses increasing risks to all businesses,especially against a backdrop of increasingly complex regulatory environments and safeguards over personal and patient data.The continually increasing instances of cyber and data-related crime presents a significan

182、t challenge in terms of securing data and systems against attack.Actions:Whilst it is impossible to completely eliminate data and cyber security risk,it is clear that effective mitigation now goes beyond building and operating security controls.The Group continues to invest in strict physical and da

183、ta security systems and protocols,including data loss prevention systems,internal and external threat monitoring.We deploy comprehensive auditing of our controls and processes targeted in these areas.The Group has a Security Council,chaired by the Chief Information Officer,which assesses current tec

184、hnology risks,approval and implementation of mitigation plans as well as to inform the Chief Information Officer of future strategy around this key business area.14Cranewareplc AnnualReport2020Strategic Report:Key Performance Indicators and Principal Risks and Uncertainties Contd.The Group also reco

185、gnises and supports(including through ongoing employee training and applicable policies and procedures)a sustained evolution of culture within the organisation that embeds security across the business.Along that vein,as many studies suggest that employees and contractors are the most common cause of

186、 data breaches,with phishing attacks being the predominant cause,the Group requires mandatory data security training of all employees and continues to develop and invest in additional training.In view of the importance of the procedures,security,regulation and controls around Cranewares solutions an

187、d customer data,Craneware met the requirements for and was awarded the HITRUST CSF certification.Health Information Trust Alliance(HITRUST Alliance)is a collaboration with healthcare,technology and information security organisations which develops,maintains and provides broad access to its widely ad

188、opted common risk and compliance management and de-identification frameworks;related assessment and assurance methodologies;and initiatives advancing cyber sharing,analysis and resilience.HITRUST has established a common security framework(CSF)to address the multitude of security,privacy and regulat

189、ory challenges facing organisations.The scope of the HITRUST CSFs requirements is wide and requires a very high standard of data security arrangements as these have been set in the context of the accreditation being relevant to US healthcare providers with handling sensitive data(Protected Health In

190、formation)and impacts in some way all areas of the business(at least in respect of the required enhancement to the Group-wide IT and data security policies).This serves to inform IT Security roadmaps and significant investments with continued compliance being an ongoing a focus.Intellectual Property

191、 Risk Issue:Failure to protect,register and enforce(if appropriate)the Groups Intellectual Property Rights could materially impact the Groups future performance.The use of third party contractors within the Groups software development organisation as well as increasing numbers of customers using out

192、sourced partners to operate parts of their finance departments,results in a larger number of third parties having access to the Groups Intellectual Property.Actions:The Group will continue to register its trademarks and protect access to its confidential information,as appropriate.The Group continue

193、s to include appropriate legal protections in its contractual relations with customers,suppliers,and employees to ensure legal protections available are taken advantage of.The Group would vigorously defend itself against a third-party claim should any arise.The Group also has in place strict physica

194、l and data security processes and encryption to protect its intellectual propertyUS Healthcare Evolution and ReformIssue:The US healthcare industry continues to evolve,with a drive for increased value from healthcare spend and a shift towards consumerisation.The US healthcare market is subject to co

195、ntinual change and as such could impact the Groups market opportunity.Actions:The Group has taken steps to ensure it stays at the forefront of how the industry is interpreting current proposals and actions they are taking.It has and it continues to develop significant industry expertise at all level

196、s of management including the Board of Directors.It actively promotes developing further experience throughout the wider organisation by,amongst other things:key hires adding to the industry expertise across the Group,both at operational and strategic levels;having independent industry experts atten

197、d and speak at internal and external Company events;regular attendance by senior management at healthcare forums and industry education events;and customer forums.The Groups Value Cycle strategy and the ongoing expansion of the Trisus platform strengthens our position as a trusted financial performa

198、nce partner to hospitals.In addition,the Group continues to innovate and develop further new products to meet evolving market needs,such as the ongoing development of the Groups new product in the cost analytics area.These strategies,in addition to the customer engagement activities outlined on page

199、 22,keep the Group at the forefront of industry developments.Regulatory EnvironmentIssue:The Group operates in an increasingly complex and heavily regulated market environment.This includes very specific requirements in dealing with,for example,data privacy,security,labour/employment,anti-kickback s

200、tatutes.Actions:The Group has a Risk and Compliance Committee,comprised of the Chief Information Officer,Chief People Officer,Chief Financial Officer,and the Chief Legal Officer to oversee activities and concerns pertaining to the strict regulatory environment.All employees and contractors are requi

201、red to undertake regular mandatory training in key topics.The Chief Legal Officer is certified in privacy law in the US and UK.In addition to utilising external experts in the relevant areas,senior management regularly attend educational events and forums to keep up to date with evolving regulations

202、.Political and Macroeconomic ChangesIssue:The Group has significant operations in both the UK and the US and therefore is exposed to the changes in the political and economic environments of both.This includes the ongoing Brexit negotiations and any changes in freedom of movement and international t

203、rade.Actions:The Group has experienced Board members and senior management in both countries.The Groups operations are currently evenly balanced between the two,contributing positively to both economies.Globally there is a restricted supply of qualified personnel within the technology sector.Politic

204、al uncertainty in the world can exacerbate this situation within specific geographies.To ensure the ongoing availability of qualified personnel,the Group continues to support training programs both internally and externally as well as develop third party partnerships.The current multi-15Cranewareplc

205、 AnnualReport2020Strategic Report:Key Performance Indicators and Principal Risks and Uncertainties Contd.jurisdictional operations of the business substantially mitigate the Groups exposure to foreign exchange rates and risk to cross border trade which can be volatile in times of uncertainty.The Gro

206、up continues to monitor emerging news and trends to stay alert to any potential future impacts.Market ConsolidationIssue:The evolving market in US Healthcare continues to place significant pressure on Healthcare providers,which is resulting in ongoing market consolidation.As a result,the Groups mark

207、et is increasingly dominated by larger hospital networks.Failure to enhance products,ensure scalability or add to the current product suite could significantly limit the Groups market opportunity and leave it unable to meet its customers evolving needs.Actions:The Groups value cycle strategy and Tri

208、sus platform,combined with the ongoing investment in the product suite,positions the Group to provide scalable solutions to US Healthcare providers of all sizes.Competitive LandscapeIssue:New entrants to the market or increased competition from existing competitors could significantly impact the Gro

209、ups market opportunity.Actions:The Group continually monitors its competitive landscape,including both existing and potential new market entrants.Significant barriers to entry continue to exist,including but not limited to the significant data content built over the Groups history that exists within

210、 its products.The Group continues to expand and develop its product portfolio and to ensure its products are platform agnostic,and actively seeks partnerships with other healthcare IT vendors.Acquisition RiskIssue:The Group has a stated acquisition strategy.Any acquisition carries with it an inheren

211、t risk,including failure to identify material matters that could adversely affect future Group performance.Actions:The Group and Board members individually have relevant experience in regards to completing acquisitions and this experience has been added to in recent years through key appointments to

212、 the Operations Board.In addition,and where appropriate,the Board appoints independent professional advisors to assist in the consideration of potential acquisitions and to assist management in the due diligence process.The principal financial risks are detailed in Note 3 to the financial statements

213、.How the Board determines and manages risks is detailed in the Corporate Governance report on pages 35 to 44.In summary,and as explained in the Operational Review section of this Strategic Report,the US healthcare market is not immune to the macro-economic climate and,with the increasing focus and r

214、equirements of the evolving healthcare marketplace,the Group expects the market to continue to be competitive.The Group aims to remain at the forefront of product innovation and delivery,through a combination of in-house development and specific acquisition opportunities.This requires the recruitmen

215、t,retention,and reward of skilled employees,alongside responsiveness to changes,and the opportunities that result,as they arise.Emerging Risk In addition to known risks,we are consistently reviewing and re-assessing other emerging risks and the need for mitigation,as well as reporting to the Board,a

216、s part of our existing risk management processes.These processes include the identification of relevant internal and external factors and are designed to capture those emerging risks which are current and those that will impact future periods.Viability Statement In accordance with the UK Corporate G

217、overnance Code,the Directors have considered the viability of the Group over the three year period from 30 June 2020.Considerations that impact this assessment include the Groups current financial position and available financial resources,the Groups Annuity SaaS business model as outlined within th

218、e Strategic Report,including Revenue Visibility,the Groups strategic initiatives,the financial forecasts,the Groups cost base and annual forecast.In the current year this assessment has also included consideration of the potential impact of COVID-19 on viability.The current impact of this so far,has

219、 been the lengthening of sales cycles especially in the last quarter of the year ended 30 June 2020 including renewals and associated upsell and cross sell.The Directors also considered a number of other factors including the Groups risk management and internal control effectiveness and the principa

220、l risks and uncertainties and their likelihood of occurrence within the period of assessment.The Directors consider that three years is an appropriate period for this assessment as it corresponds with the Three Year Revenue Visibility key performance indicator,as explained in the Strategic Report an

221、d the strategic planning horizon.The Annuity SaaS business model with its underlying long-term contracts(as described in the Strategic Report on page 7),high levels of associated cash generation and long-term focus on customer success provides a foundation of revenue for future years.This foundation

222、 of contracted revenue forms the basis of the stress testing considered by the Directors in making this assessment,including a scenario which envisages no further sales or renewal activity during the assessment period.The Directors confirm that they have a reasonable expectation that the Group will

223、be able to withstand the impact of this severe adverse scenario,should this occur in the course of the three-year assessment period.The Directors have therefore considered,in making this assessment,the Groups current financial position and future prospects and have a reasonable expectation that the

224、Group will be able to continue in operation and meet its liabilities as they fall due over the three year period from 30 June 2020.However,future assessments of the Groups prospects are naturally subject to uncertainty that increases with time and therefore future performance cannot be guaranteed.16

225、Cranewareplc AnnualReport2020s172(1)considerations:Further information at page(s)Likely long-term consequences 4 to 15Interests of the Companys employees19 to 21;33Business relationships with suppliers,customers and others22,24,25,32 and 33Impact on the community and the environment24,25 and 32Reput

226、ation for high standards of business conduct33 and 35 to 44Acting fairly as between members of the company23,34,40 and 41In accordance with the Companies Act 2006,each director of a company has a duty to promote the success of the company.Section 172(1)(a)to(f)of the Companies Act 2006(s172(1)requir

227、es a director of a company to act in the way he/she considers,in good faith,would be most likely to promote the success of the company for the benefit of its members as a whole and,in doing so have regard(amongst other matters)to:a.the likely consequences of any decision in the long-term;b.the inter

228、ests of the companys employees;c.the need to foster the companys business relationships with suppliers,customers and others;d.the impact of the companys operations on the community and the environment;e.the desirability of the company maintaining a reputation for high standards of business conduct;a

229、ndf.the need to act fairly as between members of the company.Strategic Report:Section 172(1)StatementThis statement intends to set out how the Directors,both individually and collectively,have had regard to the above factors when undertaking their duties during the year ended 30 June 2020.The Direct

230、ors consider,both individually and collectively,that they have taken these factors into account when exercising their duty to promote the success of the Group and of the Company during the year.In addition,more information is provided in this annual report relating to matters relevant to the section

231、 172 statement in the following pagesIn discharging their section 172(1)duty,the Directors have regard for these factors and take them into consideration when making decisions.Induction materials provided on appointment include an explanation of Directors duties,and the Board is regularly reminded o

232、f their duties.The Directors have oversight of stakeholder matters and have regard for these matters when making decisions.The Board,led by the Chairman,ensures that its processes have regard for key stakeholders and that there is sufficient time,information and understanding to properly take into a

233、ccount their interests when making decisions and considering their long-term implications.The Board recognises that every decision it makes will not always result in a positive outcome for each of the Groups stakeholders.By considering the Groups purpose,vision and values,together with its strategic

234、 priorities and having a process in place for decision-making the Board does however,aim to make sure that its decisions are consistent and aligned.A key consideration of the Board in making its decisions is to balance the sometimes conflicting needs of the Groups and the Companys stakeholders to en

235、sure they are all treated consistently and fairly.This was demonstrated through the decisions made in response to the COVID-19 pandemic which are outlined,in the context of stakeholder considerations,on page 17.By understanding our stakeholders,the Directors can factor into Board discussions the pot

236、ential impact of decisions on relevant stakeholder groups and consider stakeholder needs and concerns,in accordance with section 172(1)of the Companies Act 2006.Details of the Groups key stakeholders and how we engage with them are set out on pages 19 to 25.The following table summarises some of the

237、 significant decisions made by the Board during the year ended 30 June 2020 and the stakeholder group(s)impacted by these decisions.17Cranewareplc AnnualReport2020Strategic Report:Section 172(1)Statement Contd.Principal decisions/eventsActions and impactKey Stakeholder group(s)affectedRe-organisatio

238、n of the Product functionThe decision to evolve our organisational design relating to,and focusing on,our product areas was implemented during the year and this was explained in our interim results announcement on 3 March 2020.The business now has four functional solution divisions for developing an

239、d enhancing product,each with defined objectives,talented teams and clear KPIs.The aim of this evolution was to promote innovation,operational excellence and customer intimacy,while providing us with the structure to continue to scale.This is described further in our Strategic Report on pages 5 to 1

240、1.CustomersEmployees COVID-19 responseFurther details of actions in response to the COVID-19 pandemic are on page 13.The health,safety and well-being of our employees is a primary focus of the Board and senior management in response to the pandemic.This focus had to be balanced with maintaining exce

241、llent levels of service to our customers.Craneware instigated an immediate response,focusing primarily on both employees and customers,by putting measures in place to assist and alleviate issues raised by the significantly challenging situation facing our customers and the restrictions in response t

242、o the pandemic imposed in both the UK and the US.The Risk and Compliance Committee chaired by the Chief Financial Officer and joined by the CEO,was given the responsibility of being the COVID-19 response Committee.Regular updates are provided from the Committee to the Board of Directors of the Compa

243、ny.As all office-based employees moved into a new working from home environment,various steps were taken to ensure the safety and wellbeing of these colleagues.Employees were further supported through this period including the ability to work reduced hours to fit in with their personal circumstances

244、.Regular Q&A sessions,conducted by the COVID-19 Response Committee by virtual meetings,provided a forum for employees to receive updates,ask questions and raise concerns.A dedicated section on the Groups intranet is being maintained by the Committee with up to date information.We have continued to s

245、upport to our US healthcare customers to assist them,where we can,with their challenges and adding value by ensuring they can maximise their reimbursements and maintain their financial stability.This in turn gives them the ability to better serve their communities.The Directors maintained an ongoing

246、 dialogue with shareholders throughout the period.The Trading Update published on 8 July 2020 included an explanation of the impact,as assessed by the Board at that time,of the pandemic on the Group.During the financial year ended 30 June 2020,notwithstanding the challenges of the COVID-19 pandemic,

247、the Group has retained all employee positions and maintained employee remuneration at all levels across the Group.The Group was able to do this through its own resources and chose to utilise only a minimal amount of COVID-19 related UK or US government support.The Group has continued to pay supplier

248、s in accordance with agreed terms and has not sought to delay or refuse payment of valid invoices.EmployeesCustomersShareholdersCommunityGovernmentSuppliersDividend Policy(proposed final dividend for year ended 30 June 2020)The Board considered the current and future liquidity and financial position

249、 of the business and potential impact on dividend policy,particularly in view of the prevailing macroeconomic effects of the COVID-19 pandemic.Based on the financial position and cash reserves of the Group,the Trading Update published on 8 July 2020 stated the intention of the Board to pay a final d

250、ividend for the year ended 30 June 2020.As explained on page 11,the Directors are recommending the payment of a final dividend of 15p(18.45 cents)per share based on the results for 2020.Subject to approval at the Annual General Meeting,the final dividend will be paid on 15 December 2020 to sharehold

251、ers on the register as at 20 November 2020.Shareholders18Cranewareplc AnnualReport2020Share option participationIn order to provide a wider population of employees with an opportunity to become Craneware shareholders,which promotes alignment to shareholder interests and aids with recruitment and ret

252、ention,the Board decided to implement the SAYE and ESPP all employee share option plans which had been established,and adopted by shareholders,in 2018.The Remuneration Committee approved the first grant of share options under the all employee SAYE(UK)and ESPP(US)share option plans in the year ended

253、30 June 2020,as summarised in Note 8 to the financial statements and as outlined on page 48 of the Remuneration Committees Report.EmployeesShareholdersAppointment of Non-executive DirectorsAs stated in the 2019 Annual Report,the Board had identified from its Board evaluation process that adding furt

254、her non-executive experience could complement the Board.During the year ended 30 June 2020,Alistair Erskine and David Kemp were appointed to the Board as independent non-executive directors.As announced in September 2019,George Elliott stepped down as Chairman of the Board at the Companys AGM on 12

255、November 2019,having served as Chairman since August 2007,and William Whitehorn was appointed to the Board as Chairman on 1 January 2020.The Board considered each of these appointments in the context of the Boards balance(including the provisions of the UK Corporate Governance Code 2018),experience,

256、skills and expertise.Further details regarding the director appointments during the year are contained within the Corporate Governance Report on pages 35 to 44 and the biographies of the directors are on pages 27 and 28.ShareholdersCraig Preston Chief Financial Officer 18 September 2020Strategic Rep

257、ort:Section 172(1)StatementPrincipal decisions/eventsActions and impactKey Stakeholder group(s)affected19Cranewareplc AnnualReport2020 Stakeholder EngagementThe Board is responsible for leading stakeholder engagement,ensuring that we fulfil our obligations to those impacted by the business.We believ

258、e that considering our stakeholders in key business decisions is fundamental to our ability to drive value creation over the longer term.Our key stakeholder groups and how we engage with them are summarised in the tables below.The views of stakeholders have been considered in the scheduled Board and

259、 Operations Board meetings as well as in the context of the response to the COVID-19 pandemic.By understanding our stakeholders,we can factor into the Boards discussions the potential impact of our decisions on each key stakeholder group and consider their needs and concerns,in accordance with secti

260、on 172(1)of the Companies Act 2006,as outlined on page 16.Not all information is reported directly to the Board and not all stakeholder engagement takes place directly with the Board.However,the output of this engagement informs business decisions,with an overview of developments and relevant feedba

261、ck being reported to the Board.More material matters require the Boards consideration,with the Board engaging directly with,primarily,our employees and shareholders.EMPLOYEES We recognise the value of our employees and that the success of the Group is due to their efforts.Employee engagement is base

262、d on Cranewares Framework and core values of honesty,integrity,hard work to the highest quality,service and enjoying the challenge.Driving employee engagement,empowerment and execution by prioritising the Framework and Lean principles was one of our strategic themes and outcomes for the year.How we

263、engageAnnual employee engagement survey:We conduct an annual employee survey which is hosted by an external survey vendor.Our employee engagement survey gathers employee views,with anonymised responses,on topics including:culture,understanding strategy,working environment,morale,reward,work-life bal

264、ance.The survey conducted this year achieved a very high level of response from employees.Satisfaction scores are evaluated to provide a breadth of context about how employees are feeling and an Employee Engagement Index is also collated and monitored.The annual employee engagement survey is supplem

265、ented by further pulse surveys during the year.Going forward into FY21,our employee engagement survey will be quarterly with updated questions.Employee Advisory Committee(EAC):We launched our EAC during the year which comprises a diverse panel of employees who were selected,based on interested appli

266、cants,to represent a cross-section of teams.The mission of the EAC,which meets monthly,is:to enable a high contribution culture where employees feel empowered,valued,achieve personal development and contribute effectively.The EAC has been established,with the full support of the Operations Board(whi

267、ch includes the executive Directors and other members of the senior management team),as a forum through which employees can meaningfully and responsibly participate in an advisory capacity to the Group.The EAC is not a decision-making body.The EAC provides a platform for information and discussions

268、about issues that are of interest to employees and provide recommendations back to the Operations Board and,if appropriate,to the Board of Directors.Annual all-employee meeting:a key part of this meeting is the explanation and roll out of Group-wide strategic themes and outcomes,as agreed by the Boa

269、rd,and related deliverables(with key performance indicators)to all employees at the start of the financial year.The team is then provided with regular updates on these strategic themes and progress with deliverables during the year.All-employee update meetings:on a minimum six monthly basis,usually

270、following the full and half year financial results announcements,an all employee update meeting is hosted by the CEO and CFO to provide an update to employees on the business.There is always a question and answer section at the end of these meetings which provides the opportunity for employees to as

271、k the Directors questions.Ongoing communication:We use the Group-wide intranet,as a main point of communication to share information and updates with employees.The intranet hosts the employee handbook of policies and procedures in addition to employee,company,and industry news and other departmental

272、 and Group-wide information such as employee wellness activities and Craneware Cares initiatives.The intranet also played an important role during the COVID-19 pandemic as home to the COVID-19 Information Hub(explained further below).Each week a 30 minute Craneware Information Mini Series is held.Th

273、e presenter and topic change each week,and is a way for employees to understand what other employees and teams are working on across the business.20Cranewareplc AnnualReport2020How we engage(continued)Craneware Spaces:Towards the end of this year we launched a new initiative called Craneware Spaces

274、which are hosted sessions creating safe spaces for conversation and community on the topic of racism,diversity,and inclusion.The sessions are led by and involve employees and guest speakers.COVID-19 response:Appropriate adaptations have been made to employee engagement mechanisms,including employee

275、communications,policies and wellness initiatives,during the year ended 30 June 2020(and ongoing at the time of compiling this annual report)with the changes to working practices required due to the COVID-19 pandemic.Employees required regular updates on steps being taken by Craneware,support to unde

276、rstand key policies and procedures which might be helpful,links to guidance from the government and local authorities,and general wellness support.Created by the COVID-19 Response Committee,the COVID-19 Information Hub on the Groups intranet provided a one stop shop for employees to access latest in

277、formation.In addition,a 30 minute COVID Q&A is hosted on a bi-weekly basis in order for employees to ask live questions of the COVID-19 team.Framework:Cranewares Framework has been at the core of the company since it was first formed.The Framework provides the organisation with a clear definition of

278、“who we are and how we perform”.It is part of employees onboarding when they join Craneware and underlies,and is interlinked to,contribution management.The Framework comprises:Cranewares characteristics and values connecting to each competency,strengthening the way in which the organisation recognis

279、es the Craneware Ethos within employee contribution management.LEAN Initiatives:Lean methodology is a way of optimising people,resources,effort and energy of an organisation toward creating value for the customer.It is based on two guiding tenets:continuous improvement;and respect for people.LEAN Me

280、thodology reinforces Cranewares trust,respect and desire to empower its employees who are responsible for the achievement of the business objectives through their daily work.The program was introduced at Craneware in financial year 2017 and continues to be utilised to drive accountability and discov

281、er value in our process to deliver on commitments and business goals with balanced throughput that matches customers needs and sustains company growth.Contribution management:This links the contribution of each individual to the overall strategic direction of the organisation and provides clarity an

282、d transparency around expectations.The process aims to drive a high contribution culture and it has a direct impact on reward,strategy alignment,organisational development and the Company ethos.Employees are encouraged to maintain a personal development plan,linked to an employees role and goals,as

283、part of the contribution management process.Learning and development:Cranewares employee learning management system(LMS)called the Academy,hosts on demand learning solutions,covering a wide range of subject matter.Each Craneware employee has a personal log-on and account within the portal system whi

284、ch allows the allocation and tracking of training for each employee.The system also enables the control of(and tracking of completion of)mandatory and annual training modules.In addition,a technology specific learning platform called Pluralsight is available for employees in technical roles.The plat

285、form delivers training in many areas of technology,such as coding languages.Three different types of leadership programs exist to bring together and further develop internal leaders.For a number of years,Craneware has supported a Masters Degree in Business Administration(MBA)program in partnership w

286、ith University of Strathclyde to provide employees,who are interested in pursuing an MBA,a way of further developing their business knowledge and leadership potential.Induction:We have a comprehensive induction programme in place for new members of the team.This includes being assigned a“buddy”,a su

287、ite of introductory information and mandatory training hosted on the LMS.The induction experience is monitored by HR through 30,60 and 90-day check-ins with the new employee.Recognition:Employee recognition is embedded into Cranewares culture,and includes a broad range of opportunities from casual r

288、ecognitions to formal annual peer-nominated awards.Stakeholder Engagement Contd.EMPLOYEES Contd21Cranewareplc AnnualReport2020How we engage(continued)All-employee share plans:In order to provide a wider population of employees with an opportunity to become Craneware shareholders,which promotes align

289、ment to shareholder interests and aids with recruitment and retention,we have established a Save As You Earn(SAYE)share option plan for UK employees and an Employee Stock Purchase Plan(ESPP)for US employees.Share options were first granted under these two share option plans in the year ended 30 June

290、 2020,as summarised in Note 8 to the financial statements.There was a good level of participation in the plans this year,in terms of the numbers of employees who chose to join.Wellness:We have enhanced our employee wellness programmes again during the financial year.Employees have volunteered to be

291、Wellness Ambassadors to provide wellness information on the Groups intranet and support employee wellness events.Community initiatives:Craneware Cares,an employee committee,links an element of employee engagement with relevant community engagement in an ongoing and active mechanism.Further details a

292、re contained in the Community section below.How this was considered in Board discussions and decision makingThe results and anonymised feedback received from the annual employee engagement survey are collated and rated to identify any aspects for improvement,which then guide initiatives to address t

293、hose areas.The results and anonymised feedback are reviewed and considered by both the senior management team and also by the Board.The Board receives regular reports about a range of factors and issues affecting our employees to ensure that appropriate consideration is given and early action taken

294、where necessary.The Board also regularly considers matters and initiatives as part of its commitment to promote diversity and equality across all of our teams.The Remuneration Committee approved the first grant of share options under the all employee SAYE(UK)and ESPP(US)share option plans in the yea

295、r ended 30 June 2020,as summarised in Note 8 to the financial statements and as outlined on page 48 of the Remuneration Committees Report.Measures exist for the Board and senior management to evaluate Cranewares workforce structure and to ensure that these trends align with objectives around diversi

296、ty and inclusion.Stakeholder Engagement Contd.EMPLOYEES Contd22Cranewareplc AnnualReport2020 Stakeholder Engagement Contd.CUSTOMERS Craneware prioritises customer engagement as a critical component to our long-term success.We recognise the importance of,and are fully committed to,engaging with our c

297、ustomers in meaningful,two-way conversations.Craneware is also improving our customers experience via several initiatives,in addition to our extensive engagement during implementation,professional services,and from ongoing customer support.How we engageCraneware Advisory Council(CAC):This forum repr

298、esents leadership from both within Craneware,as well as key leaders from our customer organisations.Through innovative and collaborative focus groups,we collect qualitative feedback,which is prioritised and refined into application features and services.This enables us to add value for our customers

299、.In addition to scheduled meetings,ongoing Craneware Advisory Council member feedback is collected through surveys,mastermind sessions,and thought leadership projects.Craneware Financial Performance Summit:This event is a broader opportunity to engage customers,providing users of Craneware applicati

300、ons and services with educational and networking opportunities.All current customers are invited to attend this live event,which is held in a different location each year.In October 2020,the event is being delivered virtually.LEAN Principles:We employ a consultative approach across all solutions to

301、measurably improve customer financial and operational performance.This approach is founded upon LEAN principles for effective process development,and includes utilising voice of the customer exercises to develop Critical-To-Quality trees,discovery questionnaires,role assessments,and application-spec

302、ific value scorecards.Educational webinars:Craneware regularly offers complimentary live webinars providing training across our solutions.Webinars also cover educational industry topics including billing,coding and regulatory changes which impact hospitals revenues and costs.As noted on page 13,thes

303、e webinars were integral to Cranewares response to the COVID-19 pandemic.Cranewares professionals quickly released new insights that were critical to customers management of these coding and operational changes.Using an existing customer engagement channel for webinars,new sessions,specifically desi

304、gned to support hospitals and healthcare organisations,were offered to both customers and non-customers as a collaborative measure to support the industry.Craneware Academy:Craneware Academy is the knowledge centre of Craneware,with a triple aim:professional development,Craneware knowledge,and indus

305、try knowledge.Customer proficiency with their Craneware applications is assessed through courses that provide testing scenarios and hands-on practice within the system.These courses contribute to levels of Craneware certification,which are celebrated annually.Customer Care Team:This is a designated

306、team of problem-solving,relationship specialists.Their focus includes partnering with select customers to engage and optimise the value of the Craneware relationship,including our solutions,services,webinars,and expert advice.This level of service contributes to customers renewing existing contracts

307、 and purchasing additional opportunities.How this was considered in Board discussions and decision makingCustomer feedback regarding the value of Cranewares applications and services,as well as sales data,is regularly presented to the Board of Directors.These insights inform strategic decisions.23Cr

308、anewareplc AnnualReport2020 Stakeholder Engagement Contd.SHAREHOLDERS The Company engages in full and open communication with both institutional and private investors and responds promptly to all queries received.How we engageIn conjunction with the Companys nominated adviser,all relevant news is di

309、stributed in a timely fashion through the regulatory news service of the London Stock Exchange to ensure shareholders are provided with material information on the Companys progress.The primary point of contact for shareholders on operational matters is the CEO and the CFO.The primary point of conta

310、ct for shareholders on corporate governance and other related matters is the Chairman.The Senior Independent Director is available as a point of contact should a shareholder not wish to contact the Chairman for any reason.Annual General Meeting:All shareholders are invited to attend the Annual Gener

311、al Meeting(AGM)of the Company and are encouraged to take the opportunity to ask questions to the Directors.The proxy voting,for the resolutions proposed for the AGM,can be submitted to the Companys Registrar online,through CREST or by paper forms submitted by post.The Board sought feedback from shar

312、eholders during the year to understand the reasons for proxy votes cast against three of the resolutions proposed at the AGM in November 2019(further information is provided on page 41).Meetings:The CEO and the CFO meet regularly with shareholders,normally immediately following the Companys half yea

313、r and full year financial results announcements,to discuss Cranewares performance and answer any questions.Investor conferences:The CEO and/or the CFO regularly attend investor conferences which provide an opportunity to meet with both existing and potential shareholders.Capital Markets Day:These ev

314、ents are typically arranged by the Company for institutional investors and analysts.The last Capital Markets Day was held in November 2018 and was attended by all of the Directors of the CompanyWebsite:The Companys website at ,in compliance with the AIM Rules,has a section for investors which contai

315、ns all publicly available financial information and news on the Company.How this was considered in Board discussions and decision makingThe Board monitors the success of CEO and CFO meetings with shareholders through anonymous evaluations from both shareholders and analysts performed by the Companys

316、 Corporate Broker and Financial PR advisor.Unfortunately,different arrangements are having to be made for the AGM in November 2020,due to the current public health guidelines in relation to COVID-19;and consideration for the safety and well-being of our shareholders,the Directors and employees of th

317、e Company.This is explained on page 34.All Board decisions are made with regard for the long-term success of the Group and the Company,which are ultimately aligned to our shareholders interests.24Cranewareplc AnnualReport2020 Stakeholder Engagement Contd.COMMUNITY As part of the commitment to corpor

318、ate social responsibility and community engagement,Craneware has continued to develop a number of programs and opportunities to positively impact the community around us.How we engageCraneware Cares The focus of Craneware Cares is to raise awareness and funds for charity in both the UK and the US co

319、ordinated through an employee committee,with donations to US organisations approved and distributed through the Craneware Cares Foundation,an official charitable foundation in the US.With these initiatives being co-ordinated by an employee committee,Craneware Cares thereby links an element of employ

320、ee engagement with relevant community engagement in an ongoing and active mechanism.In addition to the four focus charities supported in the year(two in the UK and two in the US),Craneware Cares also supported a number of employees personal charity efforts and celebrated global charity initiatives.F

321、rom March 2020 onwards,the UK and US Craneware Cares committee responded to the pandemic by moving social event funds that could no longer be used into our donation budget to help support groups in our communities particularly affected by the virus.Volunteer Time Off program The fund raising activit

322、ies of Craneware Cares supplement the Volunteer Time Off program where Craneware employees take paid leave to support projects and charities in their communities.How this was considered in Board discussions and decision makingThe Board continues to support the operation of Craneware Cares and ensure

323、s that budgeted expenditure,to provide donations and matching employee sponsorship,is included in the financial plan.25Cranewareplc AnnualReport2020 Stakeholder Engagement Contd.OTHER STAKEHOLDER GROUPS SUPPLIERS Relationships with suppliers and subcontractors are based on mutual respect,and Cranewa

324、re seeks to be honest and fair in its relationships with suppliers and subcontractors,and to honour the terms and conditions of its agreements in place with such suppliers and contractors.ENVIRONMENT The Group is committed to maintaining a high level of social responsibility.It is the Groups policy

325、to support and encourage environmentally sound business operations,with aspects and impact on the environment being considered at Board level.How we engageSuppliersOur teams interact with our main suppliers on a regular basis to strengthen trading relationships and to ensure that supplier engagement

326、s continue to operate well to support the business.Our vendor contracts review and monitoring procedures aim to ensure that fair and reasonable contract terms are in place with suppliers.It is the Groups normal practice to make payments to suppliers in accordance with agreed terms and conditions,gen

327、erally within 30 days,provided that the supplier has performed in accordance with the relevant terms and conditionsEnvironmentWe engage in recycling programmes where possible within the parameters of building management for our offices.In the UK,we participate in Cyclescheme,an employee benefit prog

328、ramme which helps facilitate cycling to work by offering discounts on bikes and equipment.As an office-based operator using leased facilities,our environmental impact is relatively low compared with other sectors.We do not manufacture or transport goods and the Group does not provide company vehicle

329、s to employees or Directors.Recognising that the Groups operations have minimal direct environmental impact,the Group aims to ensure that:it meets all statutory obligations;where sensible and practical,it encourages working practices,such as teleconferencing,teleworking and electronic information ex

330、change that reduce environmental impact;and recycles waste products wherever possible,encouraging use of environmentally friendly materials,and disposing safely of any non-recyclable materials.Our energy use reporting for the year ended 30 June 2020 is on page 32.How this was considered in Board dis

331、cussions and decision makingThe Board receives any significant information regarding our suppliers,payment practices and environmental matters in the Board reports.26Cranewareplc AnnualReport2020 Directors,Secretary,Advisors and SubsidiariesDirectorsW Whitehorn(non-executive,Chairman)K Neilson C T P

332、reston R F Verni(non-executive)C Blye(non-executive)R Rudish(non-executive)A Erskine(non-executive)D Kemp(non-executive)Company Secretary&Registered OfficeC T Preston1 Tanfield Edinburgh EH3 5DANominated AdvisorsPeel Hunt LLP120 London Wall London EC2Y 5ETRegistrarsLink Asset Services LtdThe Registr

333、y 34 Beckenham Road Beckenham Kent BR3 4TUStockbrokersPeel Hunt LLP120 London Wall London EC2Y 5ETInvestec Bank plc30 Gresham Street London EC2V 7QPBankersBank of ScotlandThe Mound Edinburgh EH1 1YZThe Royal Bank of Scotland plc36 St.Andrew Square Edinburgh EH2 2YBClydesdale Bank20 Waterloo Street Glasgow G2 6DBBarclays Commercial BankAurora House 120 Bothwell Street Glasgow G2 7JTHSBC Bank plc7 W