1、Craneware plcAnnual Report&Financial StatementsFor the year ended 30 June 2023Registered Number SC196331Craneware plcAnnual Report and Financial Statements 20232Final ResultsSolutions Chairs Statement Strategic Report:Operational and Financial Review Strategic Report:Key Performance Indicators Strat
2、egic Report:Principal Risks and UncertaintiesStrategic Report:Environmental,Social and Governance(ESG)IntroductionStrategic Report:Non-Financial and Sustainability Information StatementStrategic Report:Environmental,Social and Governance(ESG)StatementStrategic Report:Section 172(1)Statement Stakehol
3、der Engagement Directors,Secretary,Advisors and SubsidiariesBoard of Directors Directors ReportCorporate Governance ReportRemuneration Committees Report Independent Auditors Report to the members of Craneware plcConsolidated Statement of Comprehensive IncomeStatements of Changes in EquityConsolidate
4、d Balance Sheet Company Balance Sheet Consolidated Statement of Cash FlowsCompany Statement of Cash Flows Notes to the Financial Statements34-567-1314-1516-242526-3334-4647-5152-555657-5859-6566-7980-9798-103104105106107108109110-151Table of ContentsThe Craneware Groups support is strong,and the ven
5、dor is very prompt in answering questions and finding information.They take time to explain how to do things,and they are very responsive to needs.The vendor has great involvement in our success,and we have regular one-on-one calls with our point person.Director May,2023Craneware plc3Annual Report a
6、nd Financial Statements 2023 Financial Highlights(US dollars)$174.0m$54.9m$169.0m$13.1m92%$78.5m$83.0m87.016.0p(20.19)Revenue increase of 5%to$174.0m (FY22:$165.5m)Adjusted EBITDA1 increased 6%to$54.9m (FY22:$51.8m)Annual Recurring Revenue2 increased to$169.0m(H1 FY22:$166.4m),with an associated Net
7、 Revenue Retention3 value in excess of 100%(FY22:n/a)Statutory Profit before tax$13.1m(FY22:$13.1m)Basic adjusted EPS1 87.0 cents(FY22:89.0)and adjusted diluted EPS 86.3 cents (FY22:88.1 cents)Basic EPS 26.3 cents(FY22:26.8 cents)and diluted EPS 26.1 cents (FY22:26.5 cents)Robust Operating Cash Conv
8、ersion4 at 92%of Adjusted EBITDA(FY22:80%)Total Cash and cash equivalents$78.5m (FY22:$47.2m)Total Bank Debt$83.0m(FY22:$111.6m)Proposed final dividend of 16.0p per share(20.19 cents)(FY22:15.5p,18.80 cents)giving a total dividend for the year of 28.5p per share(35.95 cents)(FY22:28.0p,33.96 cents)u
9、p 2%Migration of customers onto the Trisus platform now complete,providing the foundation for future product and customer expansionTrisus Chargemaster secured first place in the Chargemaster Management category of the“2023 Best in KLAS Awards:Software&Services”a record 13th time for the Group,demons
10、trating the success of the migration process and enhancements made to the underlying application Strong levels of customer retention,maintained at+90%in the yearContinued investment in R&D and innovation to capitalise on the growing market opportunity,including the recent launch of Trisus Labor Prod
11、uctivity,addressing the highest single cost category for any healthcare organsiationTotal R&D costs that have been capitalised are already covered by the total combined value of contracts written for the Trisus related productsFirst third-party partner applications are now accessing the Trisus platf
12、orm,with the potential to add to ARR in future yearsFinal ResultsOperational Highlights26.3 1.Certain financial measures are not determined under IFRS and are alternative performance measures as described in Note 27 of the financial statements.2.Annual Recurring Revenue(“ARR”)includes the annual val
13、ue of license and related recurring revenues including transaction revenues at 30 June 2023 that are subject to the underlying contracts and where revenue is being recognised at the reporting date.3.Net Revenue Retention is the percentage of revenue retained from existing customers over the measurem
14、ent period,taking into account both churn and expansion sales.4.Operating Cash Conversion is cash generated from operations(as per Note 19),adjusted to exclude cash payments for exceptional items and movements in cash held on behalf of customers,divided by adjusted EBITDA.5.When we refer to Cranewar
15、e,or The Craneware Group or Group in the annual report we mean the group of companies having Craneware plc as its parent and therefore these words are used interchangeably.Trisus Pricing TransparencyTrisus Pricing Transparency helps you meet the requirements of the rule and go beyond posting prices
16、by providing valuable analytics to monitor market dynamics.Our applications and industry-leading team of experts contextualize operational,financial,and clinical data,providing insights that clearly demonstrate realistic revenue integrity and 340B compliance opportunities for our customers.Senturion
17、 Professional ServicesAs the leader in value cycle solutions for nearly 20 years,hospitals of all sizes and types rely on The Craneware Groups Professional Services to help address their toughest challenges.We deliver results that lead to improved revenue recognition and retention.Craneware plcAnnua
18、l Report and Financial Statements 20234SolutionsPricingTrisus Pricing AnalyzerTrisus Pricing Analyzer simplifies and automates the price-modeling process.Your organization can readily assess the potential impact of pricing changes,such as revenue shortfalls or changes in payor contracts.Trisus Decis
19、ion SupportTrisus Decision Support goes beyond traditional cost and accounting tools and provides insights into resource consumption on the patient level.Trisus ChargemasterDesigned with the user in mind,Trisus Chargemaster enhances efficiency in workflow,collaboration,and communication across clini
20、cal and financial teams.InSight Medical NecessityInSight Medical Necessity serves all parts of your organization that need instant access to medical necessity requirements,from admissions and order-entry to medical records and external practices.InSight AuditInSight Audit is a powerful application t
21、hat allows your organization to manage and streamline audit reporting,tracking and workflow processes to improve audit results with reduced compliance and financial risks.Trisus Claims InformaticsTrisus Claims Informatics,a retrospective charge capture analytical application,identifies high-impact a
22、reas of risk for your team to investigate.Trisus SupplyAlign data sets from the item master,chargemaster,and operatory with automated reviews to eliminate disparity which can result in lost or incorrect data and revenue.Trisus Supplies AssistantOur proprietary supplies coding search function deliver
23、s HCPCS codes,UNSPSC codes,manufacturer,description,catalog ID,status indicator,reimbursable flag,revenue codes,and other reference information in a single screen.Appeal ServicesThe Craneware Group has the experienced staff you need to review your denials,write successful appeals,and overturn improp
24、er denials.RevenueOur applications and industry-leading team of experts contextualize operational,financial,and clinical data,providing insights that clearly demonstrate realistic revenue integrity and 340B compliance opportunities for our customers.Trisus Labor ProductivityDesigned with the user in
25、 mind,Trisus Labor Productivity enables healthcare providers to strategically manage,analyze,and plan the deployment of their workforce for cost-effective care.Professional Services CatalogOur team members act as an extension of your team,bringing with them 20+years of experience working with thousa
26、nds of covered entities and contract pharmacies.Customer Journey to Value Cycle SuccessHospitals and health systems across the country leverage the passion of our professionals,strength of our data and innovative high-value solutions to drive better outcomes for all.Craneware plc5Annual Report and F
27、inancial Statements 2023Craneware plcAnnual Report and Financial Statements 2023SolutionsCostTrisus Medication Analytic SolutionsPrioritize,diagnose,and resolve issues in your medication systems to impact finances,workflow efficiencies,and patient outcomes while mitigating compliance risks.SentinelS
28、entinel helps you capture more by providing detailed tracking of all drug activity at the 11-digit NDC level for a complete audit trail and more insights into your pharmacy operations.SentrexSentrex is a SaaS-based solution that helps covered entities expand medication access while maintaining compl
29、iance with evolving legislation.Trisus Medication CompareTrisus Medication Compare helps pharmacy leaders leap to value-based care by comparing treatments,medications,processes,and costs to help identify treatment plans that achieve the best patient outcomes340BTrisus Medication ClaimDesigned to hel
30、p you accelerate payment for pharmacy claims and minimize claim denials,while managing complex,government-mandated reporting requirements.Referral Verification SystemOur Referral Verification System(RVS)leverages your existing Sentrex platform to access referrals initially deemed ineligible,helping
31、you reclaim eligible prescriptions and capture more 340B opportunity.Trisus Medication FormularyTrisus Medication Formulary combines data from the formulary,charge transactions,and medication purchases to ensure all purchases are captured in the formulary,coded,and charged correctly.Trisus Medicatio
32、n Financial ManagementTrisus Medication Financial Management assesses purchase,billing,and remittance data sets to provide visibility into margins,at the medication levelServicesCraneware plcAnnual Report and Financial Statements 20236Chairs StatementChairs StatementIn a year marked by the continuat
33、ion of the Public Health Emergency in response to the pandemic,I am pleased to report on a period of robust performance.While we did not achieve the revenue growth we anticipated at the start of the year,due to the Groups services related lines of business taking longer to recover than previously ex
34、pected,the team nonetheless delivered growth in key financial metrics,continued to execute on our product migration strategy,and closed the year on an improving trading trajectory.With the Public Health Emergency in the US now declared over,attention is returning to improving the value and resilienc
35、e of the healthcare system.Through Trisus,our cloud-based data analytics and intelligence platform,we can be a central player in the digitalisation of US healthcare.The team is focused on capturing this opportunity through product expansion and the delivery of value to our extensive customer base.St
36、eady,profitable growthGroup revenues for the year increased 5%to$174.0m(FY22:$165.5m)with an adjusted EBITDA increase of 6%to$54.9m(FY22:$51.8m)maintaining our target EBITDA margin of above 30%.Within this,software and related revenue increased by 5%to$159.1m,accounting for 92%of revenue.This growth
37、,coupled with healthy levels of customer retention,at above 90%,drove growth in underlying ARR to$169.0m(31 December 2022:$166.4m),with an associated Net Revenue Retention value in excess of 100%.As at 30 June 2023,the Group maintained strong total cash and cash equivalent balances of$78.5m(30 June
38、2022:$47.2m)with a reduced total bank debt of$83.0m(30 June 2022:$111.6m).The Groups strong cash generation and high levels of revenue visibility provides the Board with the confidence to maintain our investment levels in the business,to support our growth aspirations.A valuable position from which
39、to buildWe hold an enviable central position within the US healthcare industry,with approximately 40%of registered US hospitals as Craneware customers,including more than 12,000 US hospitals,health systems,affiliated retail pharmacies and clinics,and data sets covering more than 175 million unique p
40、atient encounters.The successful completion in the year of the migration of customers onto Trisus provides the foundation for future growth acceleration.Looking ahead,we will continue to seek ways to extend our Trisus platform,through product development,partnerships and M&A.Increasing our Board exp
41、ertiseWe were delighted to welcome Anne McCune,a new Non-executive Director,to the Board in November.Anne is a recognised leader in the US Healthcare industry,who has served as a senior Executive for several leading academic hospital and physician centres and as a Managing Director in healthcare con
42、sulting firms.Anne is currently a Community Board member of the Strategy and Transformation committee at Salinas Valley Memorial Healthcare System in California.Making a positive contribution to societyOur Purpose is to transform the business of healthcare through the profound impact our solutions d
43、eliver,enabling our customers to deliver quality care to their communities.The tangible positive impact our solutions can make on the lives of others continues to be a great motivator for our talented team.The Craneware Group has always had a strong commitment to social responsibility and community
44、engagement,which has been enhanced by the integration of our 340B offerings in recent years.As a Group,we have developed many initiatives over the past several years which contribute to our sustainability credentials,and we continue to develop a number of programmes and opportunities to positively i
45、mpact the community around us.The Group has always been cognisant of the importance of sustainability and Environmental,Social and Governance(ESG)matters,particularly in the context of the Groups Purpose.However,we recognise that these areas are constantly evolving and that organisations must contin
46、ually strive to do more and as such an ESG Committee has been established.We detail more of the impact the Group makes,within the communities we serve,in our ESG Statement within the Annual Report.On behalf of the Board,I would like to thank all of The Craneware Group team for their continued passio
47、n and commitment to serving our customers.An improving outlookThe breadth of solutions The Craneware Group can provide,as well as the power of its operational and administrative platform and data,give the Board confidence in the Groups ability to provide the insights its customers need to deliver gr
48、eater value healthcare to their communities.With the sales growth experienced in the final quarter of the year delivering incremental revenues,combined with further momentum in the current period,the Group has seen a positive start to trading in the new financial year.The Groups balance sheet streng
49、th,high levels of ARR and early signs of increasing customer confidence,leave the Group well positioned for FY24 and beyond.Will WhitehornChair4 September 2023 Craneware plc7Annual Report and Financial Statements 2023together siloed data from the various existing software systems in a hospital or he
50、althcare system,normalises that data and applies prescriptive analytics to provide insights to support informed decision making regarding a hospitals finances and operations,in one place.This digitalisation of healthcare and improvement of processes through the use of data insights,as opposed to mer
51、ely digitising healthcare,for example recording an individual healthcare encounter in an electronic form such as the recent move to electronic health records,provides the foundation for Value Based Care and enables the transformation of the business of healthcare.We provide customers with the abilit
52、y to build effective strategies related to revenue,pricing,cost,and compliance to mitigate the internal and external challenges described above,delivering real financial returns and freeing up resources that can be re-invested and re-deployed by healthcare providers to support the clinical care of t
53、heir communities and tackle their clinical challenges.Growth Strategy innovation to profoundly impact US healthcare operations which will drive demand and expand our addressable marketTo date,our growth has been driven through increases in market share and product set penetration(land and expand).In
54、 recent years,we have invested in the development of the Trisus platform;a sophisticated cloud delivered data aggregation and intelligence platform which will be the foundation for our future growth.We are building on top of Trisus to strengthen our current products,leverage our data assets to expan
55、d our offering,integrate third party solutions to the platform and benefit from the scalability of cloud-technology.Through our 20+year history in the US healthcare market,we have collected our own unique and extensive data set,which we believe contains the insights that will generate our products o
56、f the future.While we have always had a team analysing this data,the growth in AI means it is now easier and faster to do so.Meanwhile,we are also using AI and machine learning to make our coding more efficient and productive.Two Growth PillarsOur growth strategy has two fundamental growth pillars:1
57、.The transition of our customers to cloud delivered versions of our existing on-premise solutions,to act as a gateway to the benefits and additional applications on the Trisus platformWe are pleased to now have all our customers connected to,and benefiting from,the Trisus platform.Of particular impo
58、rtance has been the migration of our previous flagship application,Chargemaster Toolkit,customers onto our Trisus Chargemaster offering.This has been carried out in phases over the last 36 months,as we have expanded the functionality of Trisus Chargemaster.We were delighted Trisus Chargemaster secur
59、ed first place in the Chargemaster Management category of the 2023 Best In KLAS Awards:Software&Services during the year.For The Craneware Group,this is a record 13th time,more than any other vendor in our space.The award demonstrates Operational ReviewWe are pleased to have delivered a robust finan
60、cial performance in the year,achieving growth in revenue and EBITDA whilst maintaining a strong balance sheet.These results demonstrate the resilience of the Group through a prolonged period of disruption across the US healthcare landscape and I am grateful for the teams hard work and dedication,ami
61、dst a challenging environment.We successfully completed our primary strategic focus for the year-the migration of customers onto Trisus,our cloud-based platform.With the transition complete,we can focus on the continued expansion of the Trisus product offering,which we anticipate will in turn drive
62、customer expansion.While remaining cognisant of the challenges our customers and partners continue to face,we are encouraged by improving prospects across our market.The COVID-19 public health emergency in the US was formally declared over in May 2023,and with the related pressures on hospitals star
63、ting to ease we are seeing attention turn to the improvement of hospitals underlying operations and financial performance.This was reflected in a healthy close to the financial year,as we saw an increasing number of opportunities enter our pipeline in Q4,with momentum carrying over to the new financ
64、ial year.Market supportive underlying trendsThe US healthcare market continues to experience challenges across three broad areas:clinical,financial and operational.The clinical arena is grappling with issues such as the impact of the opioid epidemic,a mental health crisis and an aging population inc
65、reasing the demand for services around chronic conditions and long-term care.Financially the cost of healthcare in the US has been increasing significantly,including the cost of prescription drugs,medical procedures and associated insurance premiums.Meanwhile,against this backdrop,operational pressu
66、res are increasing,with managers having to navigate issues such as a shortage of healthcare professionals and wage inflation.Addressing the challenges through data and insightsThe combination of these factors means our customers are being asked to do more,with less.We believe the key to successfully
67、 achieving that,while improving patient care,is through accurate,accessible and meaningful data and insights,providing the ability to deliver enhanced services,improved infrastructure,governance and the ability to make smarter choices around resource allocation.However,to make those smarter choices
68、our customers need to manage and analyse vast amounts of data,which presents significant and costly considerations for hospitals,like scalability,interoperability,processing costs,security,and compliance.Our vision is for the Trisus platform and its applications to address these challenges,providing
69、 connected technology in the cloud.Our Trisus platform and applications combine revenue integrity,cost management and decision enablement into a single cloud-based platform.Through our Data Foundations programme of work,Trisus brings Strategic Report:Operational and Financial Review Strategic Report
70、:Operational and Financial ReviewCraneware plcAnnual Report and Financial Statements 20238Growth Strategy Contdthe success of the migration process,the enhancements made to the application and the high levels of customer support delivered by our teams.All existing products now available as Trisus so
71、lutions,which will be further enhancedDuring the year we continued to re-engineer our existing offerings into cloud-based applications improving the benefits of our offerings to customers to facilitate the smooth transition onto Trisus.This continual improvement will be an ongoing process.The depth
72、of our product offering continues to grow through the mining of the proprietary and regulatory data that we collect,identifying new ways the data can illuminate and support decision making within the hospital provider environment.We now have datasets for over 175 million unique patient encounters,pr
73、oviding incredibly valuable insights for our customers.Whilst our Revenue Integrity and 340B related applications sit on different technology stacks within the Trisus platform,they both supplement and further enrich the Trisus data sets.Eventually the work we are doing with our Trisus Data Foundatio
74、ns programme will enable the full integration of these stacks,making our offerings yet more attractive to customers as the speed and depth of insights available is increased.The four Medication related Trisus applications launched last year,replacing and adding to our non-340B pharmacy offerings,hav
75、e been well received and we anticipate will support expansion sales in current and future periods.Data Foundations increasing the interoperability of applications to increase speed of entry to the platform and facilitate cross saleAs part of our Data Foundations programme of work,we are utilising th
76、e advances in AI and data processing to increase the interoperability and connectivity of our applications,while making the platforms back-end processes more efficient and effective.For example,new customers coming onto the Trisus platform will only require one data feed,thus accelerating entry to t
77、he platform and its benefits.Six application suitesThe Trisus applications have now been grouped into six Trisus Optimisation Suites,bringing together the applications that address specific strategic issues facing healthcare providers and are powered by the same sub-set of customer data.Through brin
78、ging the applications into suites,we aim to make it easier for our customers to identify which of our multiple additional applications are likely to unlock immediate value and address their challenges most effectively,based on their existing data within the Trisus platform.The product portfolios are
79、:Trisus Pricing Integrity,Trisus Data Integrity,Trisus Business of Pharmacy,Trisus Revenue Protection Optimisation,Trisus Charge Capture Optimisation and Trisus Value-based Margin&Productivity.Launch of Trisus Labor ProductivityTowards the end of the financial year we were pleased to launch a new ap
80、plication,Trisus Labor Productivity,to encouraging early feedback,addressing the concerns of the market around effectively managing the workforce.Staff costs represent the single highest cost for any healthcare organisation.In addition,staffing shortages have resulted in a need to do more with less.
81、Trisus Labor Productivity enables our customers to optimise their staffing by department or organisation,providing insights into daily staffing and productivity outcomes using detailed analytics and predictive modelling,thereby reducing costs and confusion for greater efficiency.The application also
82、 integrates payroll,timecard,hospital EMR/ADT events,and general ledger costs in one location for reporting,analysis,and strategic management of the workforce.2.Value driven Customer ExpansionIt is the intention that the product enhancements and expansion described above will facilitate cross sell a
83、nd upsell to existing customers,alongside an increase in average contract value to new customers.The addition of new customers and the expansion with existing customers will in turn drive growth in ARR.ARR at 30 June 2023 increased in the six months to$169.0m from$166.4m reported at 31 December 2022
84、,demonstrating the Groups continued high levels of contracted revenue visibility.We continue to see the opportunity to accelerate ARR growth over the medium term,as we unlock the considerable cross and upsell opportunities within our enlarged customer base.The Group is now in a position to report a
85、Net Revenue Retention figure,from the point of our first ARR calculation,which was 100%for the six months to 30 June 2023.Customer retention for the year exceeded 90%,which is testament to the value Craneware brings to its customer base.With the first stage of cloud-based enhancements for existing p
86、roducts now complete,we can turn our focus to the development of new applications and the extension of existing applications,to expand our capabilities and provide benefits to our customers.We anticipate this in turn will facilitate a greater level of cross sale and product penetration across our ex
87、tensive customer base over time.We also continue to see considerable cross sale opportunity between our 340B and Revenue Integrity customers and this will be an ongoing area of focus.We are encouraged to see expansion sales to existing customers represent 81%of our total new sales in the year,demons
88、trating the positive response of our customers to the increased ROI derived from the uptake of additional cloud applications.However,this does mean our sales to new customers as a percentage of our total new sales is behind historical norms,consistent with the narrative reported by other vendors tha
89、t support hospitals.We expect to see this mix move back towards our historical norms in the near term,as healthcare is once again returning its focus to Value Based Care now the impacts of the pandemic are dissipating.We also formalised our partnering processes during the year,with the aim of hostin
90、g third party application providers on the platform.In the future,revenue from these partnerships,which are not directly derived from Trisus Strategic Report:Operational and Financial Review ContdCraneware plc9Annual Report and Financial Statements 2023and directly impact the community around us.Thi
91、s has been achieved with our initiatives driven by our employees through Craneware Cares and the Craneware Cares Foundation.Craneware has advanced and supported many social initiatives and continues to do so.However,we are conscious of the need to coordinate all of our ESG-related initiatives and po
92、licies,including environmental considerations,to enable greater alignment to our ESG focus areas and also recognising the general increased interest in ESG-related credentials by our stakeholders.With these considerations in mind,we established an ESG Committee during the year.We provide further det
93、ails of these activities and the ESG Committee with our ESG Statement.Financial ReviewFor the year ended 30 June 2023,The Craneware Group is reporting an increase in revenue of 5%to$174.0m(FY22:$165.5m)and a 6%increase in adjusted EBITDA to$54.9m(FY22:$51.8m).These results reflect a robust revenue p
94、erformance against the backdrop of an industry recovering from and dealing with the aftereffects of the COVID-19 public health emergency.The challenge for our customers has,inevitably,impacted on Craneware,despite the solid performance of our annual software licence revenues,we have not seen the ret
95、urn of our professional services to the expected pre-pandemic levels as a percentage of our revenues.All industries and companies,including US healthcare and Craneware,have had to meet the challenges of the current macro-economic climate,including rising wage,medication,and supply cost inflation as
96、well as key staffing shortages.Craneware has been successful in navigating these inflationary challenges during the year,and as such we have delivered an adjusted EBITDA performance in line with the Boards expectations.Our Adjusted earnings per share,however,has been impacted by the significant incr
97、eases in interest rates that have occurred.With the interest we paid in the year increasing from$3.1m to$6.5m,our interest charge increased by 28%to$6.4m(FY22:$5.0m).In addition,our amortisation charge increased by 32%or$1.9m from the previous year.As a result,we are reporting a 2%reduction in our a
98、djusted earnings per share to 87.0 cents per share(FY22:89.0 cents per share).The increased scale and our enlarged portfolio of products following the successful integration of Sentry Data Systems,mean we can do even more to support our customers as they look beyond the impact of the pandemic and re
99、turn their focus to the delivery of Value Based Care.The need for accurate financial data,supporting analytics and the insights those analytics can bring has never been more important.Underlying Business Model and Professional ServicesThe new contracts we sign with our customers provide a licence fo
100、r the customer to access specified products throughout their licence period.At the end of an existing licence period,or at a mutually agreed earlier date,we look to renew these contracts with our customers.applications,will be categorised as third party revenues while they are in the test phase.Once
101、 their value to customers has been proven,we will seek to transition into recurring revenue models,adding to our ARR.Due to recent hospital fears surrounding cyber security,the market environment is hindering new customer growth by smaller software providers,and we therefore anticipate that this wil
102、l encourage smaller software providers to see the value of their applications being delivered through the Trisus platform,a certified HITRUST partner.In turn,our customers will benefit from complementary applications which will help them derive greater insight into their operations and financial per
103、formance without increasing their exposure to cyberthreats while we will benefit from a revenue share with the partner.While organic growth across our portfolio remains the priority,we continue to evaluate the market for M&A opportunities and will continue to pursue strategically aligned companies t
104、hat will accelerate our growth strategy,although it is unlikely that any acquisitions in the short-term will be of the relative scale of Sentry.We maintain the same four key acquisition criteria of which target companies must fit into at least one,being:the addition of relevant data sets;the extensi
105、on of the customer base;the expansion of expertise;and the addition of applications suitable for the US hospital market.We view our partnering programme as a potential for building a pipeline of future M&A activity based on the mutual benefits derived by both partners.Our People and CommunityCentral
106、 to our Purpose is how we support our customers and,in turn,how they support their communities and how we collectively work towards delivering our strategy as a team within The Craneware Group.Our solutions benefit society;they continue to deliver value for our customers,through the provision of acc
107、urate financial data,insight and analytics,that can be reinvested to support our customers in the provision of care to their communities.In addition,our 340B pharmacy solutions enable our customers to generate cost savings which go directly to the provision of care for the underserved in their commu
108、nities.The Craneware Group is also directly involved with the 340B Matters initiative,which aims to educate the market regarding the importance of the 340B program for the non-profit healthcare facilities that provide accessible and affordable care within their communities.We recognise the value of
109、our employees and that supporting our customers and the achievements of the Group is due to their efforts.Our team is a talented mix of employees from diverse backgrounds,which brings a high level of innovation and collaboration.We believe in the importance of fostering a team environment while also
110、 celebrating the individuals within the team.We continue to invest in the team,our facilities and working practices and we welcome feedback and suggestions for improvements through a range of employee engagement mechanisms.Complementing our Purpose and reflecting the causes which are important to ou
111、r employees,our team,has meant that,for many years,the Group has continually developed a number of programmes and opportunities to positively Strategic Report:Operational and Financial Review Contd Craneware plcAnnual Report and Financial Statements 202310revenues as at the Balance Sheet date that a
112、re subject to underlying contracts and where revenue is being recognised at the reporting date.ARR at 30 June 2023 increased to$169.0m from the$166.4m reported at 31 December 2022,demonstrating the Groups continued high levels of contracted revenue visibility.The Group is also reporting Net Revenue
113、Retention for the first time,from the point of our first ARR calculation,which was 100%for the six months to 30 June 2023.Customer retention for the year exceeded 90%,which is testament to the value Craneware brings to its customer base.Gross MarginsOur gross profit margin is calculated after taking
114、 account of the incremental costs we incur to obtain the underlying contracts,including sales commission contract costs which are charged in line with the associated revenue recognition and the direct costs of professional services employees who deliver the services required to meet our contractual
115、obligations.The gross profit for FY23 was$148.4m(FY22:$142.4m).This represents a gross margin percentage of 85%(FY22:86%)which is in line with the expected Gross Margins of the Group.Operating expensesNet operating expenses(to Adjusted EBITDA)increased 3%to$93.5m(FY22:$90.6m),which is a below inflat
116、ion increase and reflects our ongoing prudent cost control,including our ability to balance our investment between the US and the UK(and the associated Sterling exchange rate).This ultimately allows us to continue to deliver an Adjusted EBITDA margin of+30%.Product innovation and enhancement continu
117、e to be core to this future and our ability to achieve our potential.We continue to pursue our buy,build,or partner strategy to build out the Trisus platform and its portfolio of products.As we are cash generative,we are able to use our cash reserves to further“build”alongside the acquisition activi
118、ties in the year and therefore continue to invest significant resource in R&D.The total cost of development in the year was$50.6m(FY22:$51.1m).We continue to capitalise only the costs that relate to projects(including enhancements to our existing products)that have yet to be released to the market a
119、nd will deliver new“future economic benefit”to the Group.With the total amount capitalised in the year,being$15.0m(FY22:$13.5m)representing 30%of total R&D spend in FY23(FY22:26%)which is still below our historical norms of 35 to 40%of total R&D spend.We continue to believe this investment is an eff
120、icient and cost-effective way to further build out our Value Cycle strategy alongside any acquisition strategy.As specific products are made available to relevant customers,the associated development costs capitalised are amortised and charged to the Groups income statement over their estimated usef
121、ul economic life,thereby correctly matching costs to the resulting revenues.Financial Review ContdUnder the Groups business model,we recognise software licence revenue and any minimum payments due from our other long term contracts evenly over the life of the underlying contract term.In addition to
122、the licence fees,we have a number of 340B customers whose underlying contracts provide for a number of associated transactional services in addition to their licences.These transactional services,whilst highly dependable and recurring over the life of the contract,see some variation period to period
123、 based on the volume of transactions.Transactional services are recognised as we provide the service,and we are contractually able to invoice the customer.In any year,we also expect revenue to be recognised from providing professional and consulting services to our customers.These revenues are usual
124、ly recognised as we deliver the service to the customer,on a percentage of completion basis.As we have previously reported,the challenges US hospitals have had regarding shortages of available staff have continued to impact our ability to deliver professional services throughout the year.As a result
125、,we have not seen the return in our professional services revenues expected and as such we are reporting Professional Service in the year of$13.7m(FY22:$13.9m).This year,for the first time,we are reporting Other Revenue of$1.1m(FY22:$nil).These revenues are derived from our ability to leverage the T
126、risus platform in new and innovative ways.This was both through new ways to use our data assets to directly support our customers,and through hosting third-party applications on the platform.These revenues are recognised at the point we are able to invoice our customers.They are not,initially,deemed
127、 recurring in their nature,however once proven we expect many of these revenue opportunities to deliver future annual recurring revenue.Annual Recurring RevenueBy renewing our underlying contracts,and ensuring we continue to deliver the transactional services to our customers,we sustain a highly vis
128、ible recurring revenue base,which means sales of new products to existing customers or sales to new hospital customers add to this recurring revenue.Annual Recurring Revenue(“ARR”)demonstrates the annual value of licence and transactional revenues that are subject to underlying contracts.At our inte
129、rim results we tightened our definition of ARR to only include the annualised effect of bookings that are subject to an underlying contract and have generated revenue by the reporting date.This was done to better align future growth of ARR to near term revenue growth as well as facilitate the calcul
130、ation of a Net Revenue Retention metric.This change primarily relates to the exclusion of contract pharmacy bookings where go live has not yet happened and therefore they have not contributed to revenue in the year.As a result,ARR is now defined as the annual value of licence and related recurring r
131、evenues including transaction Strategic Report:Operational and Financial Review ContdCraneware plc11Annual Report and Financial Statements 2023EPSThe Group presents an Alternative Performance Measure of Adjusted EPS,to provide consistency to other listed companies.Both Basic and Diluted Adjusted EPS
132、 are calculated excluding costs incurred as a result of acquisition and share related activities,being$0.4m(tax adjusted)in the year(FY22:$1.6m)and amortisation of acquired intangibles of$20.9m(FY22:$20.2m).Adjusted EPS,despite increased levels of Adjusted EBITDA,has decreased 2%to$0.870(FY22:$0.890
133、)as a result of increased bank interest charges and intangible amortisation in the year.Adjusted diluted EPS has decreased to$0.863(FY22:$0.881).Basic EPS in the period reduced to$0.263(FY22:$0.268)and Diluted EPS reduced to$0.261(FY22:$0.265).Prior Year RestatementsAs reported in the prior year Fin
134、ancial Statements,the Group completed its assessment of the fair value of the assets and liabilities acquired and the consolidated balance sheet and on the 12 month anniversary of the Sentry acquisition the“window”to complete this assessment closed.However,during the current year,the Group has ident
135、ified an item of disclosure that requires adjustment and,following the completion of the various US tax returns,two matters relating to the tax balances recorded in the opening balance sheet of the acquired business where the incorrect fair value had been assessed.None of the items impact the Consol
136、idated Statement of Comprehensive Income nor any profit measures reported by the Group in the prior year.Disclosure adjustmentDeferred Income,non-current and current liabilities following a review of deferred income acquired through the Sentry acquisition,we have identified$4.8m of deferred income w
137、hich should have been disclosed as a non-current rather than a current liability,and as such this has been corrected.There is no change to the recorded Total Assets and Liabilities of the Group as a result of these disclosure restatements.Taxation adjustmentsDeferred and Current Taxation Following c
138、ompletion of the current year tax returns it was identified that an asset class included in the opening balance sheet of the Sentry acquisition had incorrectly been given a“tax basis”and as such the deferred tax liability included$3.2m and the tax debtor included$0.4m incorrectly in relation to this
139、 asset class(with the net balance being in Goodwill).To correct this both the deferred tax liability and tax debtor have been reduced and Goodwill has been reduced by$2.8m.Provision for Sales Taxes due In the period since the acquisition of Sentry,we have worked diligently to ensure the acquired com
140、panies were in good standing with all the States in which they operated.As part of this process Net impairment reversal/(charge)on financial and contract assetsThis relates to the movement in the provision for the impairment of trade receivables in the year.Following the considerable efforts in this
141、 year since the acquisition of Sentry and our ongoing relationships with customers across the Group we are seeing a reversal in the year of$2.1m(FY22:charge of$0.5m).Adjusted EBITDA and Profit before taxationTo supplement the financial measures defined under IFRS the Group presents certain non-GAAP(
142、alternative)performance measures as detailed in Note 27.We believe the use and calculation of these measures are consistent with other similar listed companies and are frequently used by analysts,investors and other interested parties in their research.The Group uses these adjusted measures in its o
143、perational and financial decision-making as it excludes certain one-off items,allowing focus on what the Group regards as a more reliable indicator of the underlying operating performance.Adjusted earnings represent operating profits,excluding costs incurred as a result of acquisition,its integratio
144、n and share related activities(if applicable in the year),share related costs including IFRS 2 share-based payments charge,interest,depreciation and amortisation(“Adjusted EBITDA”).In the year,total costs of$0.5m(FY22:$2.1m)have been identified as exceptional.These relate primarily to the one-off co
145、sts associated with the back-office systems integration of Sentry.As such,these costs were adjusted from earnings in presenting Adjusted EBITDA.Adjusted EBITDA has grown in the year to$54.9m(FY22:$51.8m)an increase of 6%.This reflects an Adjusted EBITDA margin of 32%(FY22:31%),confirming we continue
146、 to meet our target of a combined Group adjusted EBITDA margin of 30+%.Following the amortisation charge relating to acquired intangible assets relating to the Sentry acquisition of$20.9m(FY22:$20.2m),profit before taxation reported in the year is$13.1m(FY22:$13.1m).TaxationThe Group generates profi
147、ts in both the UK and the US.The Groups effective tax rate is primarily dependent on the applicable tax rates in these respective jurisdictions.Following the Sentry acquisition,whose profits are solely generated in the US,the Group now generates a higher proportion of its profits there.Following the
148、 substantive enactment of the increase in UK corporation tax rate to 25%effective from 1 April 2023,the UK corporation tax rate for the financial year increased from 19%to 20.5%.Other factors impacting the effective tax rate include tax deductibility of amortisation of acquired intangibles,tax losse
149、s brought forward in the new enlarged group and the number of share options exercised and the associated tax treatment.Reconciliation of the tax charge for the year can be seen in Note 9.As a result the effective tax rate for the year ended 30 June 2023 is 29%(FY22:28%).Strategic Report:Operational
150、and Financial Review Contd Craneware plcAnnual Report and Financial Statements 202312Under this programme we have purchased 223,632 Ordinary Shares(FY22:nil)at a total cost of 3.09m($3.87m).These shares represent 0.63%of the Companys issued Ordinary Shares and are being held in treasury.The Board co
151、nsiders that a share buyback provides an optimal use of cash to deliver value for shareholders by offsetting future dilution from existing employee share plans and as such the share buyback programme continued after 30 June 2023 and is ongoing at the time of approval of this report.Balance SheetWith
152、in the balance sheet,deferred income levels reflect the amounts of the revenue under contract that we have invoiced but have yet to recognise as revenue.This balance is a subset of the Annual Recurring Revenue described above and future performance obligations detailed in Note 4.Deferred income,accr
153、ued income,and the prepayment of sales commissions all arise as a result of our SaaS business model described above and we will always expect them to be part of our balance sheet.They arise where the cash profile of our contracts does not exactly match how revenue and related expenses are recognised
154、 in the Statement of Comprehensive Income.Overall,levels of deferred income are significantly more than any accrued income and the prepayment of sales commissions,we therefore remain cash flow positive in regard to how we account for our contracts.CurrencyThe functional currency for the Group,debt a
155、nd cash reserves,is US dollars.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 clo
156、sely monitor the Sterling to US dollar exchange rate and where appropriate,consider hedging strategies.The average exchange rate throughout the year was$1.2043 as compared to$1.3317 in the prior year.The exchange rate at the Balance Sheet date was$1.2619(FY22:$1.2128).DividendIn proposing a final di
157、vidend,the Board has carefully considered a number of factors including the prevailing macro-economic climate,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
158、 Board proposes a final dividend of 16.0p(20.19 cents)per share giving a total dividend for the year of 28.5p(35.95 cents)per share(FY22:28p(33.96 cents)per share),an increase of 2%.Subject to approval at the Annual General Meeting,the final dividend will be paid on 15 December 2023 to shareholders
159、on the register as at 24 November 2023,with a corresponding ex-Dividend date of 23 November 2023.Financial Review ContdTaxation adjustments Contdwe identified two States where there were amounts due in respect of periods prior to the acquisition.Whilst we continue to work to reduce any liability,a p
160、rovision should have been made in respect of the net amounts that were potentially due being$0.4m and as such this provision has been made as part of this re-statement.Cash and Bank FacilitiesCash generation and a strong balance sheet have always been a focus of the Group.Our business model provides
161、 the basis for high levels of cash generation,and we continue to monitor the quality of our earnings through Operating Cash Conversion,this being our ability to convert our Adjusted EBITDA to“cash generated from operations”(as detailed in the consolidated cash flow statement).In the year,we have mad
162、e improvements in the operating cash conversion of Sentry and as a result achieved Operating Cash Conversion across the combined Group of 92%in the year(FY22:80%).We continue to invest in our future and return funds to our shareholder base via our progressive dividend policy,returning$12.1m in the c
163、urrent year(FY22:$13.0m),the reduction being due to exchange rates and the majority of our dividends being paid in Sterling.Also,as part of the funding for the acquisition of Sentry,the Group entered into a debt facility and during FY22 drew down$120m of secured funding provided by our consortium of
164、 banking partners.This facility was provided on a 3+1+1 year term basis.During the year,$28m(FY22:$8m)of the loan has been repaid,$8m of the term loan on schedule and the amount drawn down on the Revolving Credit Facility was reduced by$20m.All covenants have been met,and the second extension of the
165、 term has been agreed.We continue to thank our banking partners,alongside our shareholders,for their continued support of our growth strategy.Cash reserves at the year-end were$78.5m(FY22:$47.2m).Restricted cash was disclosed separately in the prior year.As the Group is unable to hold these amounts
166、outside of its own treasury facilities,these“restricted cash”balances have now been incorporated within cash and cash equivalents for FY23 rather than being classified separately on the face of the balance sheet(FY22:$1.3m).Total borrowings of$83.0m(FY22:$111.6m)gives the Group both significant liqu
167、idity and a strong balance sheet.Share Buy BackOn 12 April 2023,the Group commenced a share buyback programme(of up to 5m).The shares purchased through this programme are held in treasury and will be used to satisfy employee share plan awards.The programme is being undertaken using a phased approach
168、.The programme is operating under the authority granted to the Company by shareholders at the Companys Annual General Meeting,held on 15 November 2022,and within the regulatory guidance on the quantity of shares the Company may purchase on any single day.Strategic Report:Operational and Financial Re
169、view ContdCraneware plc13Annual Report and Financial Statements 2023The final dividend of 16.0p 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 b
170、y the close of business on 24 November 2023.The exact amount to be paid will be calculated by reference to the exchange rate to be announced on 24 November 2023.The final dividend referred to above in US dollars of 20.19 cents is given as an example only using the Balance Sheet date exchange rate of
171、$1.2619/1 and may differ from that finally announced.OutlookWith the COVID-19 public health emergency in the US formally declared over in May 2023 and the related pressures on hospitals starting to ease,we have begun to see US hospitals return their attention to providing Value-Based Care and invest
172、ing in digitalisation,using data insights provided by the Trisus platform to transform and improve their processes.We remain committed to providing the tools our customers need to manage their operations and finances more efficiently,as we seek to transform the business of US healthcare together.Aga
173、inst this backdrop,we are pleased to have seen the strong sales momentum seen at the close of the year carry through into the start of the new financial year,resulting in a growing sales pipeline.We are confident that our resilient business model,extensive customer base,high levels of Annual Recurri
174、ng Revenue,together with our strategy for delivering growth centred on the expansion of the Trisus platform,will enable us to create further long-term value for all our stakeholders.Keith NeilsonChief Executive Officer4 September 2023Craig PrestonChief Financial Officer4 September 2023Strategic Repo
175、rt:Operational and Financial Review Contd Craneware plcAnnual Report and Financial Statements 202314The key performance indicators listed below are focused on growing our revenues and improving our revenue mix as well as improving earnings growth for our shareholders and generating sustainable cashf
176、lows.Detailed explanation of the movements is contained in the Financial Review on pages 9 to 13.Key Performance Indicator ReviewRevenue Growth20232022Revenue$174.0m$165.5mGrowth5%119%Through the Groups SaaS revenue recognition model,underlying sales levels in the current year combine with prior yea
177、rs sales and continued high levels 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.The Group is reporting Net
178、 Revenue Retention for the first time,from the point of ARR calculation at 31 December 2022,which was 100%for the six months to 30 June 2023.Annual Recurring Revenue30 June 202331 Dec 2022Annual Recurring Revenue$169.0m$166.4mGrowth2%n/aNet Revenue Retention20232022%Net revenue retention100%n/aAnnua
179、l Recurring Revenue includes the annual value of licence and recurring transaction revenues as at 30 June 2023 that are subject to underlying contracts.At our interim reporting,to better align future growth of ARR to near term revenue growth,our definition of ARR was tightened to only include bookin
180、gs that can be contractually invoiced or have generated revenue by the reporting date.As a result,ARR is now defined as the annual value of licence and related recurring revenues including transaction revenues as at the Balance Sheet date that are subject to underlying contracts and where revenue is
181、 being recognised at the reporting date.ARR at 30 June 2023 increased to$169.0m from the$166.4m reported at 31 December 2022,demonstrating the Groups continued high levels of contracted revenue visibility.Adjusted EBITDA20232022Adjusted EBITDA$54.9m$51.8mAdjusted EBITDA margin32%31%Growth6%91%We tak
182、e 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,accelerate this investment whilst delivering Adjusted EBITDA growth.By taking this approach,we aim to release additio
183、nal investment,in line with revenue growth,with the focus on delivering profitable growth to all stakeholders.Adjusted EPS20232022Adjusted EPS87.0 cents89.0 centsGrowth(2)%29%Adjusted EPS growth demonstrates the Groups overall profitability,adjusted for exceptional items,after taking into account th
184、e 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.Strategic Report:Key Performane IndicatorsStrategic Report:Key Performance Indicat
185、orsCraneware plc15Annual Report and Financial Statements 2023The Group continues to maintain healthy cash reserves of$78.5m(FY22:cash(excluding restricted cash):$47.2m).Net Borrowings has reduced to$4.5m at 30 June 2023(FY22:$64.4m Net Borrowings(excluding restricted cash)due to repayments on the te
186、rm loan and a reduction in the outstanding revolving credit facility balance drawn down.This represents a comfortable level of borrowing for the business.Net Borrowings as a percentage of Adjusted EBITDA represents the leveraging of the Groups Balance Sheet and its ability to access future funds to
187、continue its buy,build or partner strategy.At the current levels,the Board is comfortable with the level of debt and leveraging of the Group.The Group continues to convert very high levels of the Adjusted EBITDA reported in the year into operating cash flows.Overall Operating Cash Conversion,at 92%f
188、or the year ended 30 June 2023,is above the prior year of 80%.Key Performance Indicator ReviewNet Borrowings/Cash20232022Net Borrowings$(4.5)m$(64.4)mCash$78.5m$47.2mNet Borrowings/Adjusted EBITDA20232022Net Borrowings/Adjusted EBITDA(8%)(124)%Operating Cash conversion20232022Operating Cash conversi
189、on92%80%Strategic Report:Key Performance Indicators ContdCraneware plcAnnual Report and Financial Statements 202316Risk Management,Principal Risks and Uncertainties Risks and uncertainty(as well as opportunities)are intrinsic factors of conducting a business.To deliver continued sustainable growth,t
190、he Group recognises the need to minimise the likelihood and impact 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 and how we intelligently assume risks t
191、hat will provide for future growth,are key considerations to how we deliver long-term stakeholder value whilst protecting our business,people,assets,capital and reputation.The Board is very much aware that,as a public company,reputational damage is a risk and as such a key concern.Whilst the risks o
192、utlined 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 acquisition of Sentry in July 2021 presented the Group with increased opportunities as well as changes in the risk dynamics which have
193、been carefully assessed and monitored during the years since and included within the risk review and assessment process on an ongoing basis.Risk ManagementThe Directors have carried out a robust assessment of the principal and emerging risks facing the Group,including those that would threaten its b
194、usiness model,future performance,solvency and liquidity.The Group maintains its internal risk register that forms the foundation of the Board and the Audit Committee review process.Executive Directors and senior management meet to review both the risks facing the business and the controls establishe
195、d to minimise those risks and their effectiveness in operation on an ongoing basis.The aim of these reviews is to provide reasonable assurance that material risks and problems are identified and appropriate action taken at an early stage.The Board recognises that the nature and scope of risks can ch
196、ange.Whilst review of the risk register is a scheduled item on the calendar of Board agenda items,the Boards consideration of risk matters is not limited to those occasions.Risks and opportunities are factors which are continually considered when the Board is making decisions about the business and
197、strategy.The Operations Board is chaired by the Chief Executive Officer and also comprises the Chief Financial Officer,the Chief People Officer and seven further members of the Senior Management Team.The risk review is exercised through the monthly management reports and Operations Board meetings an
198、d,due to the importance of this topic,there is a sub-committee of the Operations Board(the Risk and Compliance Committee(“R&C Committee”),chaired by the Chief Financial Officer)to ensure there is specific focus on risk review and risk management.The purpose of this Committee is to function as a sub-
199、committee of the Operations Board focused on Corporate Governance responsibilities and risk management.For each risk identified,the control strategy and who is accountable for discharging that strategy is identified and documented in the meeting minutes.During monthly Operations Board meetings,mater
200、ial emerging risks are reviewed with discussion concerning actions to reduce or monitor Group exposure.In this way,risks are reviewed and updated monthly.The R&C Committee is a sub-committee of the Operations Board that takes the lead responsibility of monitoring and assessing risks across the Group
201、.The Committee usually meets monthly and comprises the Chief People Officer,the Chief Legal Officer,the Chief Technology Officer and the Chief Information Officer.The Head of Risk and Compliance is the secretary to this committee and attends all meetings.The Group also has three further committees t
202、hat report into the R&C Committee;the Security Council,the Health&Safety Committee and the ESG Committee.The Security Council is chaired by the Chief Information Officer and its purpose is to assess current technology risks,approval and implementation of mitigation plans and to inform the Chief Info
203、rmation Officer of future strategy around this key business area.The Health&Safety Committee,chaired by the Chief People Officer,monitors The Craneware Groups compliance with health and safety regulations and develops and monitors the Groups health and safety policies and strategy.The Committee aims
204、 to ensure there is a co-ordinated,compliant approach across all Craneware locations to health and safety matters.The ESG Committee was established during the year and is chaired by the Chief People Officer.Further details regarding the ESG Committee are included in the Non-Financial and Sustainabil
205、ity Information Statement and the ESG Statement sections of this Annual Report.The Corporate Governance Report includes an overview of the Groups internal control systems.We will continue to enhance our risk management processes,prioritising specific areas of focus,including:cyber security risks and
206、 operational resilience,as well as being alert to the identification of emerging risks.Risk AppetiteRisk appetite is not static and is regularly assessed by the Board to ensure it continues to be aligned with the Groups strategy.The Groups risk appetite defines the level and type of risk the Group i
207、s able and willing to accept in order to achieve its strategic aims.The Groups risk appetite influences the Groups culture and operating decisions,and is reflected in the way risk is managed.The Board aims to ensure that the Group is only exposed to appropriate risks which are managed effectively in
208、 accordance with the Groups tolerance to risk.Strategic Report:Principal Risks and Uncertainties Strategic Report:Principal Risks and Uncertainties Craneware plc17Annual Report and Financial Statements 2023The Group assesses,scores,ranks and then manages individual risks.For each identified risk it
209、is characterised,estimated how often the specified events could occur and a judgement is made regarding the magnitude of their likely consequences.For each identified risk,the risk management priorities are decided by evaluating and comparing the level of risk.This allows each risk to be quantified
210、as to the:effect of the risk and its impact;likelihood of the risk occurring;consideration of any advantage associated with the risk;action to avoid or mitigate the risk;action to take if the risk occurs.Principal Risks and Uncertainties The risks outlined here are those principal risks and uncertai
211、nties that are material to the Group.They do not include all risks associated with the Group and are not set out in any order of priority.For each risk an indication is also provided for the estimated trend in the risk exposure being increased,decreased or relatively unchanged compared to the prior
212、year.The principal financial risks are detailed in Note 3 to the financial statements.How the Board determines and manages risks is detailed in the Corporate Governance Report.In summary,and as explained in the Operational Review section of this Strategic Report,the US healthcare market is not immun
213、e to the macro-economic climate and,with the increasing focus and requirements of the evolving healthcare marketplace,the Group expects the market to continue to be competitive.The US Public Health Emergency was formally declared over in May 2023,however,this has not completely relieved the pressure
214、 on healthcare providers.Our customers continue to take steps to create further resilience across their financial operations.We are committed to partnering with our customers by providing the platform,regulatory information and data to enable them to do so.The Group aims to remain at the forefront o
215、f product innovation and delivery,through a combination of in-house development and specific acquisition opportunities.This requires the recruitment,retention,and reward of skilled employees,alongside responsiveness to changes and the opportunities that result,as they arise.Strategic Report:Principa
216、l Risks and Uncertainties ContdUkraine conflict Craneware does not have any operations or customers in Ukraine or any bordering countries and the Board considers that the risk of direct operational issues for Craneware,as a result of this situation,is therefore relatively low based on current knowle
217、dge.This situation is,however,having geopolitical and macro-economic adverse impacts in the UK and in the US where Craneware operates.The Board continues to keep this situation under review,including the following risks:increasing cyber threat;escalating energy and fuel costs will increase Craneware
218、s costs to power its offices and operations and travel costs;a period of high inflation and longer-term economic downturn may have a detrimental impact on the financial performance of The Craneware Group.Craneware plcAnnual Report and Financial Statements 202318Data&Cyber SecurityTrend since last ye
219、ar:IncreasedIssue:Security 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 and variety of cyber and data-
220、related threats presents a significant challenge in terms of securing data and systems against attack.Craneware continues to strengthen its cyber security and information safeguarding capabilities,however it is recognised that the global threat of cyber-attack is increasing along with a larger targe
221、t area in the Group.The Craneware Groups utmost priority is the reliable protection of customer data,especially the large amounts of Protected Health Information being processed.If our systems become compromised,this may result in the loss of sensitive data and/or the interruption of services for ou
222、r customers.This could also lead to a significant Financial risk that can only be partially mitigated through insurance,as well as significant reputational risk.It is important to continually reinforce the level of awareness of these risks across all personnel within the Group.While its important to
223、 have up to date policies and procedures in place,human error and increasing sophistication of the potential attackers will always pose a risk to organisations.Mitigating Actions:Security of our systems and data is critical to our business and we strive for strong,effective and comprehensive securit
224、y and governance aligned to the nature of the data the Group is handling and relevant and evolving regulations.Our systems are monitored and actively managed to mitigate and address any threats.Whilst it is impossible to completely eliminate data and cyber security risk,it is clear that effective mi
225、tigation now goes beyond building and operating security controls.The Group continues to invest in strict physical and data security systems and protocols with multiple layers of defences,including data loss prevention systems,internal and external threat monitoring.We deploy comprehensive auditing
226、of our controls and processes targeted in these areas.The Group has a Security Council,chaired by the Chief Information Officer,which assesses current technology risks,approval and implementation of mitigation plans as well as to inform the Chief Information Officer of future strategy around this ke
227、y business area.The Group has a dedicated Information Security team to focus efforts on security across the business.The Group also recognises and supports(including through ongoing employee training and applicable policies and procedures)a sustained evolution of culture within the organisation that
228、 embeds security across the business.Along that vein,as many studies suggest that employees and contractors are the most common cause of data breaches,with phishing attacks being the predominant cause,the Group requires mandatory data security training to be completed by all employees on at least an
229、 annual basis and when employees join the Group.There is ongoing development and investment in additional training.The effectiveness of this training is regularly tested and,where any shortcomings are identified,employees are required to reperform and supplement their mandatory training.In view of t
230、he importance of the procedures,security,regulation and controls around Cranewares solutions and customer data,since 2019 Craneware has met the requirements for and has maintained the HITRUST CSF certification for its Trisus and InSight solutions and corporate services.Health Information Trust Allia
231、nce(HITRUST Alliance)is a collaboration with healthcare,technology and information security organisations which develops,maintains and provides broad access to its widely adopted common risk and compliance management and de-identification frameworks;related assessment and assurance methodologies;and
232、 initiatives advancing cyber sharing,analysis and resilience.HITRUST has established a common security framework(CSF)to address the multitude of security,privacy and regulatory challenges facing organisations.The scope of the HITRUST CSFs requirements is wide and requires a very high standard of dat
233、a 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 Information)and impacts in some way all areas of the business(at least in respect of the required enhancement to the Group-wide I
234、T and data security policies).This serves to inform IT Security roadmaps and significant investments with continued compliance being an ongoing focus.Adherence to HITRUST security requirements go beyond basic government regulationsSentinel,Sentrex,and Trisus Decision Support applications meet Americ
235、an Institute of Certified Public Accountants(AICPA)Service Organization Controls(SOC)requirements,completing the external audit verified SOC Type II assessments annually.We reconfirm our audit certifications on an annual basis,and regularly evaluate to ensure our certification selections continue to
236、 be the best measure of security controls.Further details regarding the Groups information security arrangements are contained in the Environmental,Social and Governance Statement in this annual report.Principal Risks and Uncertainties Contd Strategic Report:Principal Risks and Uncertainties Contd C
237、raneware plc19Annual Report and Financial Statements 2023Data protectionTrend since last year:IncreasedIssue:The Group maintains a large amount of customer data and also holds and processes employee data,which is protected and subject to legislative requirements in multiple jurisdictions.We have an
238、obligation to protect the data we hold,whether it is customer or employee data.Loss and/or misuse of this data could result in a loss of reputation,and regulatory sanctions or fines.The protection of customer data,which includes Protected Health Information,falls under the provision of the Health In
239、surance Portability and Accountability Act(HIPAA)and the Health Information Technology for Economic and Clinical Health(HITECH)Act.Any data breach must be reported and,depending on the size of the breach,it may be made public which could damage the Groups reputation.In addition to the regulations fo
240、r protection of Protected Health Information and also General Data Protection Regulation(GDPR)compliance,over the past few years States across the US have been negotiating and passing data privacy legislation.As legislation is occurring at the State level,there are now a considerable number of varia
241、tions on data privacy to be addressed,increasing the complexity of compliance and therefore resulting in a higher possibility of non-compliance.Mitigating Actions:The Mitigating Actions described above for Data and Cyber Security risks are relevant for Data Protection risks too.The Craneware Group m
242、aintains a detailed Information Security Program,which aligns with applicable laws and regulations.This program governs how The Craneware Group employees and applications interact with sensitive,protected customer data.All employees and contractors are required to undertake regular mandatory trainin
243、g in key topics.The Chief Legal Officer is certified in privacy law in the US and the UK.We continue to ensure we address current and evolving regulations.The Data and Cyber Security section above contains details regarding the HITRUST CSF certification for Trisus and InSight solutions and also AICP
244、A SOC Type II certification in place for Sentinel,Sentrex,and Trisus Decision Support applications.HITRUST is expanding their security and data privacy controls to cover key legislation.Intellectual Property RiskTrend since last year:No ChangeIssue:The Groups intellectual property is centred around
245、the software solutions and services it develops for customers.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
246、 well as increasing numbers of customers using outsourced partners to operate parts of their finance departments,results in a larger number of third parties having access to the Groups Intellectual Property.Mitigating Actions:The Group will continue to register its trademarks and protect access to i
247、ts confidential information,as appropriate.The Group continues to include appropriate legal protections in its contractual relations with customers,suppliers,and employees.There are developed processes and procedures for the management and control of contractors as well as their access to informatio
248、n.The Group would vigorously defend itself against a third-party claim should any arise.The Group also has in place strict physical and data security processes and encryption to protect its intellectual property.Strategic Report:Principal Risks and Uncertainties ContdCraneware plcAnnual Report and F
249、inancial Statements 202320US Healthcare:Complexity,Evolution,&ReformTrend since last year:No ChangeIssue:The US healthcare industry,already a complex and highly regulated environment,continues to evolve,with a drive for increased value from healthcare spend and a shift towards consumerisation.The US
250、 healthcare market is subject to continual change and as such could impact the Groups market opportunity.Mitigating 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 devel
251、op significant industry expertise,across revenue cycle and 340B program aspects,at all levels 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
252、the Group,both at operational and strategic levels;having independent industry experts attend and speak at internal and external Company events;regular attendance and speaking engagements by senior management at healthcare forums and industry education events;and customer forums.The Groups Value Cyc
253、le strategy,delivering revenue integrity visibility and optimisation as well as 340B program management,together with the ongoing expansion of the Trisus platform strengthens our position as a trusted financial performance partner to hospitals.In addition,the Group continues to innovate and develop
254、further new products to meet evolving market needs,such as the ongoing development of the Groups new products in the medication area.Our focus on the core themes for data gathering,regardless of reimbursement model,enables Craneware to be flexible in assisting hospitals to run more efficiently and a
255、dapt to evolving models.These strategies,in addition to the customer engagement activities outlined on pages 36 to 37,keep the Group at the forefront of industry developments.The reimbursement environment is constantly evolving.While the threat exists and ongoing changes continue to occur,the situat
256、ion has been ongoing for some time.Healthcare reform is a point of political focus and fluctuation;reform measures occur in varying directions depending on the political party in power and their success in passing new legislation while in power.Principal Risks and Uncertainties ContdRegulatory Envir
257、onmentTrend since last year:IncreasedIssue:The Group operates in an increasingly complex and heavily regulated market environment at both the federal and state levels.This includes very specific requirements and policies in dealing with,for example,data privacy,security,labour/employment,anti-kickba
258、ck statutes,compliance with and operation of the 340B program.This risk is also driven by new state-level data privacy legislation which is coming into play on a rolling basis across the US,in addition to existing 340B and GDPR and HIPAA regulations.The US regulatory environment is driven by three a
259、reas of government focus that includes Congressional actions(federal and state),Judicial decisions,and Administration actions.When there is uncertainty in regulatory oversight or a desire for change in policy,it drives either judicial or congressional engagement or the opportunity for constituents t
260、o provide comments to the Administration.In the case of healthcare,there is a current drive to lower drug pricing,create transparency,and reduce the total cost of care.An increasing number of drug manufacturers(24)have been excluding their products from 340B contract pharmacies or placing further da
261、ta requirements on covered entities in order to alleviate these exclusions.These exclusions are reducing covered entities 340B benefits and,as a result,potentially curtailing their ability to provide services in their underserved communities.These restrictions and their implications have led to liti
262、gation(which is ongoing)both on and from the manufacturers with the federal government agency Health Resources and Services Administration(HRSA).Additionally,legislation is ongoing in some states that have enacted protections for their covered entities.The outcome of these actions or any legislation
263、 to limit the scope and benefit of 340B could result in a fundamental change(reduction)in potential revenue.Additionally,we continue to monitor the annual changes to the hospital outpatient prospective payment system(OPPS)that is administered by the Centers for Medicare and Medicaid Services(CMS)and
264、 any regulatory changes that can impact healthcare reimbursement and payer strategies.The Group operates in both the UK and the US and is therefore exposed to the changes in the political and economic environments of both jurisdictions.Mitigating Actions:The Group has a Risk&Compliance Committee,com
265、prised of the Chief Information Officer,Chief People Officer,Chief Financial Officer,Chief Technology Officer,and the Chief Legal Officer to oversee activities and concerns pertaining to the strict regulatory environment.All employees and contractors are required to undertake regular mandatory train
266、ing in key topics.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.Legislative changes are occurring on a regular basis.The Risk&Compliance Committee,which is made up of senio
267、r management from both countries,oversee activities and concerns pertaining to the strict regulatory environment.Strategic Report:Principal Risks and Uncertainties Contd Craneware plc21Annual Report and Financial Statements 2023Complex Market DynamicsTrend since last year:IncreasedIssue:The global e
268、conomic environment continues to be uncertain.Factors such as the post-pandemic environment,staffing shortages,inflation,Russias invasion of Ukraine and supply chain issues,along with increased legislation around healthcare and healthcare reform in the US require healthcare organisations to continuo
269、usly shift in response to the changing environment.While the critical health risks of the pandemic have subsided,the pressure on healthcare providers continues and the drive for increased value from healthcare spend and the shift towards consumerisation remains.Consolidations and the scrutiny around
270、 some of those mergers among healthcare providers have increased.Continued consolidation around technology service providers has accelerated.The evolving market in US Healthcare continues to place significant pressure on healthcare providers,which is resulting in ongoing market consolidation.As a re
271、sult,the Groups market 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.Mitigating Actions:Healthca
272、re economies are increasingly challenged in terms of cost relative to outcomes.Providers need to adjust to achieve margins that allow them to re-invest in clinical care.The continued move to value-based care is consistent with The Craneware Groups Value Cycle strategy and the ongoing expansion of th
273、e Trisus Platform including our 340B product portfolio.The Group continues to innovate and develop further new products to meet market needs.The Group has taken steps to ensure it stays at the forefront of how the healthcare organisations are interpreting current proposals and the actions they are t
274、aking,including continually adding to and developing industry expertise at all levels of management including the Board of Directors.Competitive LandscapeTrend since last year:No changeIssue:New entrants to the market or increased competition from existing competitors and those with vertical growth
275、strategies could significantly impact the Groups market opportunity.Mitigating 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
276、content built over the Groups history that exists within 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.The Trisus platform continues to evolve and expand,w
277、ith new modules being released and a growing customer base.Our longer-term contracts help limit any unexpected customer departures.We also monitor customer satisfaction to ensure delivery of services meets customer expectations.The Groups combined suite of applications and industry-leading team of e
278、xperts help our customers contextualise operational,financial and clinical data,providing valuable insights and best practice.These value cycle insights deliver revenue integrity and 340B compliance,as well as margin and operational intelligence something no other single partner can provide.Manageme
279、nt of GrowthTrend since last year:No ChangeIssue:Significant growth,both organically and through acquisition,can place strain on the current management bandwidth and other resources across the Group.There is a risk that significant reliance can be placed on a few members of the senior management tea
280、m,the retention of which cannot be guaranteed.If the correct level of investment in people and technology is not maintained it is possible that the quality of the Groups service offering could drop and/or cost control and operational effectiveness will deteriorate.Mitigating Actions:Organisational d
281、evelopment and design,including Lean initiatives,and aligning the corporate infrastructures are helping drive accountability to the most appropriate levels.Management bandwidth continues to be built at all senior levels of the organisation,this includes the Transformation Office.The Transformation O
282、ffice supports current and future significant initiatives as the Group grows and evolves.The Operations Board has also benefitted during the year from the addition of the new Chief Technology Officer.Ongoing leadership development programs ensure that the next generation of Craneware leadership is e
283、quipped to manage the growth of the organisation.The Group has a programme of continual investment in all aspects of the business including:operational,financial and management controls,procedures and training programmes.This is constantly reviewed and monitored to ensure that the Group can continue
284、 to maintain the high standards of customer service and product development activities.Strategic Report:Principal Risks and Uncertainties ContdCraneware plcAnnual Report and Financial Statements 202322Acquisition RiskTrend since last year:No ChangeIssue:The Group has a stated acquisition strategy,as
285、 explained within the Operational and Financial Review section of the Strategic Report.Any acquisition carries with it an inherent risk,including failure to identify material matters that could adversely affect future Group performance and failure to effectively integrate an acquired business in ord
286、er to realise the anticipated benefits(including strategic goals,synergies and cost savings).Mitigating Actions:The Group and Board members individually have relevant experience in regard to completing acquisitions and this experience has been added to in recent years through key appointments to the
287、 Operations Board.The Craneware Group continues to mature and has both wider management bandwidth and more experience to manage and integrate an acquisition.In addition,and where appropriate,the Board appoints independent professional advisors to assist in the consideration of potential acquisitions
288、 and to assist management in the due diligence process.The integration of the Sentry business,following its acquisition by Craneware in July 2021,was managed on a phased basis,using established change management controls and strong leadership support across the organisation.Experience gained from th
289、at integration process will assist with the management of the integration of any future acquisitions.Principal Risks and Uncertainties ContdMacro-economic EnvironmentTrend since last year:IncreasedIssue:The Group has significant operations in the UK and,predominantly,the US and is therefore exposed
290、to the changes in the political and economic environments of both as well as relevant aspects of the global environment.The current macro-economic environment has several compounding influences which are resulting in headwinds and challenges for many businesses globally.These factors include(but are
291、 not limited to):widening political divide;climate of social instability and increased industrial actions;increase in interest rates;rise in food and commodity prices;resulting cost of living increases and salary inflation pressures;increased employee attrition globally;supply chain issues;instabili
292、ty and uncertainties caused by the Russia/Ukraine conflict.The compounding influences of these factors are setting the stage for significant inflation and higher interest rate environment over a currently unknown timeframe.Any worsening of economic conditions could lead to further cost inflation and
293、 reduced healthcare budgets which could impact demand for the Groups solutions and services.Employee retention is an increasing challenge to all businesses.This issue is compounded by the ability to attract talent with specific skillsets and experience.Globally there is a restricted supply of qualif
294、ied personnel within the technology sector.There are also associated costs of recruitment,onboarding and training.The potential impact is that we will have a gap in the required resources needed to deliver on our short-term strategic goals.Falling short of these will impact customer contracts and re
295、venue.High levels of attrition can have a negative impact on the performance of the business,on customer service and on organisational culture.Mitigating Actions:Macro-economic risks are outside the Groups control,but the Group will continue to focus on ensuring it has effective measures in place to
296、 identify and react quickly to changes in macro-economic conditions,including robust planning,forecasting and resource allocation procedures.The Groups current financial position includes a strong balance sheet and cash generation.There is regular monitoring of economic trends,review of financial fo
297、recasts and scenarios and tracking contract prices.This supports regular forecast updates that allow the Board to monitor the performance of the Group on a timely basis and respond accordingly.The Group has experienced Board members and senior management in both the UK and in the US.There is close m
298、onitoring of the inflationary environment and the impact of inflationary increases is being assessed by financial modelling.Our long term contracts with customers often contain annual increases which provide an element of annual increased revenue to offset increasing costs.With operations across bot
299、h the UK and the US,we are able to recruit from talent pools in both geographies.We continue to develop and enhance our employee value proposition,specifically the balance between investing in reward and other factors which are important to our employees such as learning and development,employee eng
300、agement initiatives and our Dynamic Working Framework.These are outlined in the Environmental,Social and Governance Statement.We conduct monitoring of salary and total compensation structures compared to benchmarks.Regular reviews are performed and benchmark data obtained to understand and manage sa
301、lary trends.Further monitoring of attrition rates and exit interviews provide insight into the impact on the Group and help to direct actions.Strategic Report:Principal Risks and Uncertainties Contd Craneware plc23Annual Report and Financial Statements 2023Compliance with debt finance facility coven
302、antsTrend since last year:No ChangeIssue:As part of the funding for the acquisition of Sentry,the Group entered into debt facility arrangements which provide up to$140m of secured funding.This secured committed debt facility,comprises a term loan and a revolving credit facility.Details of these borr
303、owings are provided in Note 21 to the financial statements.The loan agreements require specific bank covenants and quarterly reporting to ensure compliance with the conditions of the loan facilities.If the covenants were breached,the lenders could take action against the Group.This could include the
304、 lenders using their security over the Groups assets to repay the outstanding debt,thus adversely impacting shareholders.It is necessary that the borrowings are appropriately managed to ensure the Group continues meet all obligations as they fall due,to ensure the Group has sufficient headroom to ex
305、ecute on our strategy and to deliver returns for our shareholders.Mitigating Actions:There is regular monitoring of financial information across the organisation,including monitoring of compliance with the loan covenants.The forecasting process enables evaluation of projected financial information a
306、gainst the bank covenant requirements and this is kept under review.The Group benefits from high levels of recurring revenues leading to strong cash generation which is improving levels of headroom against the borrowing facilities and reducing leverage.The Groups loan facility is provided by a broad
307、 and supportive banking syndicate and the business is operating well within the loan covenants.The loan facility has been drawn down to the extent of$120m of which$84m was outstanding at 30 June 2023 comprising a$24m term loan and a$60m revolving loan facility.These facilities were originally due to
308、 expire on 30 June 2026 and on 7 June 2024 respectively.We retain regular and detailed dialogue with our lenders.During the year ended 30 June 2023,we have completed the second extension of our banking facilities,as described on page 12.Based on the relationships we have developed and regular engage
309、ment,each of the banks were supportive and agreed the requested extension of the facilities.This demonstrates the positive support we continue to receive from our banking partners.Banking EnvironmentNew RiskIssue:The financial services industry,and notably banking,have faced significant challenges t
310、hat have led to increased risk impacting cashflow and lending products.In 2023,the unexpected collapse of a large US Bank resulted in issues with access to assets,employee credit cards,cash receipts,and the stability of significant loans.Many businesses,including The Craneware Group,were impacted by
311、 the situation.This risk of contagion to other banks remains a possibility.Further industry risks exist with increased threats of security breaches,exacerbated by global conflicts and national tensions.Mitigating Actions:Insurance measures are already in place,along with good relationships with a nu
312、mber of financial institutions allows the Groups cash reserves being“spread”across multiple banks.We continue to implement process improvements,including increasing visibility on high-value contracts which result in significant payments into a single account.Insurance measures have also been reviewe
313、d to ensure as effective coverage as is possible.We retain regular and detailed dialogue with our lenders,and these relationships continue to be supportive.Emerging RisksEmerging risks are newly developing risks that cannot yet be fully assessed but that could,in the future,affect the viability of o
314、ur strategy.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,as part of our existing risk management processes.These processes include the identification of relevant internal and external fact
315、ors and are designed to capture those emerging risks which are current and those that will impact future periods.Climate ChangeThe Group is aware that,for all businesses,the profile and therefore impact of climate-related risks are likely to change not just in terms of physical impacts but also as a
316、 result of evolving government policy to enable transition to low carbon economies.Climate change has both immediate effects and progressive,long-term effects on the risk profile of all businesses.In the short-term there is an increasing frequency of extreme weather events(wind/rain/flood);this may
317、lead to significant changes in certain costs,including but not limited to taxation e.g.on emissions.In addition to any physical impacts,Governments may seek to introduce new regulations in this area to accelerate the transition to a low carbon economy.The profile and therefore impact of climate-rela
318、ted risks are set to alter as government policy evolves.The actions required to reduce carbon usage and to mitigate the impacts of climate change may be wide-ranging,resulting in an increase in operational costs or capital expenditure.Climate-related risk considerations,including governance arrangem
319、ents,are disclosed within the Groups Non-Financial and Sustainability Information Statement.Strategic Report:Principal Risks and Uncertainties ContdCraneware plcAnnual Report and Financial Statements 202324Emerging Risks ContdClimate Change ContdThe nature of Cranewares operations,i.e.not manufactur
320、ing or transporting goods,means its environmental impact is relatively low compared with other sectors and our overall risk from climate change is assessed as low.However,all businesses,including Craneware,must recognise the importance of responding appropriately and reducing their contribution to g
321、lobal climate change.Also,as the size of the Group grows,we are conscious of the impact our operations may increasingly have on the environment.Craneware aims to manage its environmental impacts responsibly and this is further outlined within the Environmental,Social and Governance Statement.In rega
322、rd to specific risks to Craneware;existing resilience plans include mitigation strategies for extreme weather events;energy costs are a relatively small proportion of its costs and likely regulatory interventions are seen as manageable;and we already rely on video conferencing technology,thereby red
323、ucing our travel requirements.The Group also remains cognisant of the significant reputational risk if it does not continue to respond appropriately to global climate change.Viability Statement In accordance with the UK Corporate Governance Code,the Directors have considered the viability of the Gro
324、up over the three-year period from 30 June 2023.Considerations that impact this assessment include the Groups current financial position,including the addition of the bank facility and other available financial resources,the Groups SaaS business model as outlined within the Strategic Report,the Grou
325、ps strategic initiatives,the financial forecasts,the Groups cost base and annual forecast.In the current year this assessment has also included consideration of the continuing impact of the current macro-economic climate on viability.With regard to the current economic climate,significant increases
326、in inflation and the increased cost of current interest rates have been modelled as part of this assessment for their impact on the Groups cost base.In addition,the Directors assessed the current banking facilities and the Groups ability to satisfy the terms and covenants of the loan agreements,effe
327、ctive from July 2023.The Directors also considered several other factors including the Groups risk management and internal control effectiveness and the principal risks and uncertainties and their likelihood of occurrence within the period of assessment.The Directors consider that three years is an
328、appropriate period for this assessment as it corresponds with the outlook used internally and for strategic planning.The SaaS business model with its underlying long-term contracts(as described earlier in the Strategic Report),high levels of associated cash generation and long-term focus on customer
329、 success provides a foundation of revenue for future years.This foundation of contracted revenue forms the basis of the scenarios considered by the Directors in making this assessment,including a scenario which envisages no revenue growth and a reduction in revenues during the assessment period.The
330、Group also has a committed but undrawn facility available to it of$60m.The Directors confirm that they have a reasonable expectation that the Group will be able to withstand the impact of this severe adverse scenario,should this occur during the three-year assessment period.The Directors have theref
331、ore considered,in making this assessment,the Groups current financial position and future prospects and have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the three-year period from 30 June 2023.However,future assessments
332、 of the Groups prospects are naturally subject to uncertainty that increases with time and therefore future performance cannot be guaranteed.Strategic Report:Principal Risks and Uncertainties Contd Craneware plc25Annual Report and Financial Statements 2023ESG Committee Chairs IntroductionAt the hear
333、t of our culture is our aim to operate in an ethical way that allows us not only to meet the needs of our stakeholders,but most importantly have a profound and positive impact on the communities in which we operate and the wider society.Our Purpose is to transform the business of healthcare through the profound impact our solutions deliver,enabling our customers to provide quality care to their co
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
