Shares in Scottish healthcare technology firm Craneware plunged by more than 25% after it said revenue in the current financial year will be sharply lower following delays to contracts and a cyberattack in July.
The Aim-quoted company, whose customer base is made up of thousands of hospitals, clinics and pharmacies in the US, was hit by delays to the 340B drug discount programme, while a post-period cybersecurity incident affected a significant volume of customer and partner records.
Today it said the incident is still under investigation and it has taken a “prudent” approach to its immediate financial outlook, with FY27 revenue expectations reset to approximately $185m, down from the revised $206m posted in the year to the end of June.
It said its remains confident in the long-term outlook because of recurring revenue and new product launches. The proposed dividend remains consistent with the prior year at 32p per share.
Adjusted EBITDA increased 3% to $67.1m, reflecting a 33% margin. Statutory profit before tax rose 7% to $25.8m.
However, shares in the company plummeted, closing 25.78% or 346p lower at 996p, wiping about £115m off investors’ holdings. The stock is 48.48% lower in the year to date.
Analysts are Capital Access said: “The impact of the disruption in the operation of the 340B drug programme in the US has proven much more severe than previously anticipated and the full impact of the cyber security incident has yet to be quantified.”
Investec noted that “340B is simply too critical to hospital profitability to abandon” but noted that it “should ultimately be a driver”.
Chief executive Keith Neilson told Daily Business that investment in a new suite of solutions deals with regulatory requirements, but admitted more certainty was required.
In today’s statement, he said: “Delivering growth consistently over an 18-year period as a public company is rarely straightforward. FY26 was challenging and growth was below our expectations.
“We responded quickly to the evolving 340B environment and the increasingly onerous drugs manufacturers’ requirements by launching the first of a family of software solutions designed to help customers manage these new 340B requirements.
“Recent market developments indicate that 340B conditions should become progressively more supportive for these new offerings through FY27, particularly in the second half, although the timing remains dependent on regulatory clarity and customer adoption.
“The cyber incident has led us to reset our near-term financial expectations to provide certainty to stakeholders, but it does not change our confidence in the group’s long-term opportunity.
“In FY27, our priorities are to renew long-term customer contracts, expand recurring revenue through sales to new and existing customers, ensure our cost base is suitably sized and maintain strong cash generation, providing a platform for growth in FY28 and beyond.
“Looking ahead, our financial resilience, deep integration into core customer workflows and proprietary data provide a strong long-term foundation for sustained value generation, as we support our customers in transforming the business of healthcare.”
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