![\"Keith](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2023\/10\/Keith-Neilson-portrait.png\")
Healthcare technology firm Craneware says it expects lower revenue in the current financial year following delays to contracts and a cyberattack in July.<\/p>\n
The Aim-traded Edinburgh company, which sells software to the US medical market, said income for the year to the end of June came in at $206 million, in the middle of revised expectations.<\/p>\n
The company, whose customer base is made up of thousands of hospitals, clinics and pharmacies, was hit by delays to its 340B drug discount programme, while a post-period cybersecurity incident affected a significant volume of customer and partner records.<\/p>\n
Craneware today said the incident is still under investigation and it has taken a \u201cprudent\u201d approach to its immediate financial outlook, with FY27 revenue expectations reset to approximately $185m.<\/p>\n
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.<\/p>\n
Adjusted EBITDA increased % to $67.1m, reflecting a 33% margin. Statutory profit before tax rose 7% to $25.8m.<\/p>\n
Chief executive Keith Neilson said: \u201cDelivering growth consistently over an 18-year period as a public company is rarely straightforward. FY26 was challenging and growth was below our expectations. <\/p>\n
\u201cWe responded quickly to the evolving 340B environment and the increasingly onerous drugs manufacturers\u2019 requirements by launching the first of a family of software solutions designed to help customers manage these new 340B requirements. <\/p>\n
\u201cRecent 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.<\/p>\n
\u201cThe 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\u2019s long-term opportunity. <\/p>\n
\u201cIn 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.\u00a0<\/em><\/p>\n \u201cLooking 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.\u201d<\/p>\n Daily Business Bulletin<\/strong>:\u00a0Subscribe here for our free morning bulletin of breaking news<\/em><\/strong><\/p>\n \t <\/div>\n