Craneware has refinanced its banking facilities, providing “increased flexibility to execute its growth strategy”.
A stock exchange update confirmed that the group’s revolving credit facility has been renegotiated on improved terms, for a further three years, with the option to extend for two further one-year terms.
This new, unsecured, $100m facility consolidates the previous term loan and credit. It is also at lower interest rates than the previous facilities, and provides a further $100m accordion facility that could support potential acquisition activities.
The facilities have been provided by a consortium of HSBC, Barclays, NatWest and Santander.
Alongside the refinancing, the board has initiated a proposed reduction of capital which would create additional distributable reserves of $284.2m, if ultimately approved by a court process, giving “further flexibility to deliver shareholder returns over the coming years”, either in the form of distributions and/or purchases of its shares.
Following the approval of resolutions to approve the proposed capital reduction on 20 August, the first court hearing for initial direction is expected to be held shortly.
In July, Craneware confirmed it had experienced positive trading throughout the fiscal year ended 30 June, delivering continued revenue growth and a double digit increase to profitability, ahead of prior expectations.
The group continued to deliver high levels of operating cash conversion, which have been invested in the product portfolio and reducing debt, with total bank debt reduced from $35.4m to $27.7m year-on-year, while retaining total cash reserves of $55.9m – up from $34.6m at the same time in 2024.
Final results for the year ended 30 June 2025 will be published on 15 September.
Chief executive Keith Neilson commented: “We would like to thank our banking partners for their continued support of the business and belief in our growth strategy.
“Our strategic position at the heart of the US healthcare market, strong balance sheet and positive trading provides us with a strong position from which to explore multiple avenues for growth, as we support our customers in the transformation of the business of healthcare.”
Source: Insider