Craneware Shares Plunge After Cybersecurity Incident and Lowered Outlook

Shares of healthcare software provider Craneware (CRW.L) fell by as much as 23.8% on Monday after the company announced a more cautious financial outlook following a cybersecurity incident.

Revised Financial Expectations

Craneware stated it is resetting its near-term financial expectations due to the cyberattack, the full financial impact of which has not yet been quantified. For the fiscal year ending June 2027, the company now anticipates revenue to be approximately $185 million, in line with its current annual recurring revenue.

"The cyber incident has led us to reset our near-term financial expectations," Chief Executive Keith Neilson said in a statement. The incident, first disclosed in July, involved unauthorized access and the exfiltration of some data, though Craneware reported that customer services and core operations were not disrupted.

Full-Year Results and Headwinds

Alongside the revised outlook, the company reported results for the year ended June 30. Key figures include:

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• Revenue: $206 million, nearly flat compared to $205.7 million in the prior year.
• Adjusted EBITDA: Rose 3% to $67.1 million.
• Pretax Profit: Increased 7% to $25.8 million.

The company said revenue growth fell short of expectations primarily because its hospital clients were unable to realize expected benefits from the U.S. 340B drug pricing program, which limited related transaction revenue.

Balance Sheet and Shareholder Returns

Craneware's bank debt increased to $43.5 million from $27.7 million a year earlier, a move the company attributed to drawing down funds to finance a $25 million share buyback program completed during the fiscal year. The company's cash position stood at $54.8 million.

Despite the challenges, Craneware proposed a total dividend of 32 pence per share, unchanged from the previous year. The company also noted it has begun a review of its cost base to maintain its overall EBITDA margin.