Craneware

Website: Craneware
Index: AIM
EPIC: CRW
Supersector: Technology
Sector: Software and Computer Services
Subsector: Software
Market Cap: £662.85M
Payout Frequency: Semi-Annual

Craneware Dividend Analysis and Summary

Declared Dividend and Key Dates

Final dividend: 18.5p per share (FY24: 16.0p), up ~15.6%.
Total FY25 dividend: 32.0p per share (FY24: 29.0p), up ~10%.
Ex-dividend date: 27/11/2025.
Record date: 28/11/2025.
Payment date: 18/12/2025.
Currency: paid in GBP by default; optional USD payment via currency election by close of business on 28/11/2025. FX rate to be announced on that date.

Context from Results

Revenue: $205.7m (+9%); Adjusted EBITDA: $65.3m (+12%, margin 32%).
ARR: $184.0m (+7%); NRR: 107%; customer retention >90%.
Cash from operations: $59.9m; operating cash conversion: 94% of Adjusted EBITDA.
Cash: $55.9m; Bank debt: $27.7m ? Net cash (APM): $28.2m.
New unsecured RCF post year-end: $100m on improved terms (+$100m accordion).

Dividend Sustainability and Cover

Earnings cover (approximate, using FY25 EPS and FY25 year-end FX $1.3713/£1):
- Total dividend 32.0p ˜ ~$0.44 per share.
- Cover by Basic EPS ($0.562): ~1.3x.
- Cover by Adjusted Basic EPS ($1.161): ~2.6x.
Cash cover: FY25 dividends paid of $13.3m are well covered by operating cash flow ($59.9m); even after capitalised development and capex (~$15.4m), coverage remains strong.
Balance sheet support: net cash position and reduced finance costs (with the new unsecured, lower-cost RCF) underpin the proposed uplift.
Business quality: high ARR, 107% NRR, and multi-year contracts provide visibility; gross margin at 87% and EBITDA margin at 32% support ongoing distributions.

Growth Trajectory and Policy Signals

Dividend growth: double-digit increase in both the final (+15.6%) and full-year (+10%), consistent with Board commentary on maintaining strong margins and cash generation.
Investment discipline: continued reinvestment of ~25% of revenue into R&D while increasing dividends suggests balanced capital allocation.
Pipeline/backlog: total unsatisfied performance obligations of $326m signal multi-year revenue visibility, supporting future dividends.

Structural or Policy Factors That Could Impact Future Dividends

Financing: post year-end $100m unsecured RCF on improved terms (plus $100m accordion) replaces prior term loan/RCF, lowering interest costs and enhancing flexibility—supportive for dividends.
M&A stance: Company continues to assess acquisitions; while potentially accretive, significant deals could temporarily reprioritise capital away from dividends.
Rejected takeover approach in FY25: no change to dividend policy disclosed, but demonstrates Board’s confidence in standalone growth.
FX and currency election: dividends declared in GBP with optional USD payment; GBP/USD movements will affect USD-equivalent payout and coverage.

Risks and Flags to Dividend Stability

Regulatory exposure: meaningful contribution from 340B-related solutions; changes in US 340B regulation could affect growth and cash flows (flagged by the company as a monitored risk).
Revenue mix: $20.0m of non-recurring platform revenues in FY25; management expects conversion to ARR, but timing is not guaranteed—potential variability in cash generation if conversion lags.
Macro and healthcare policy: US hospital budgets remain sensitive to labour costs, tariffs, and reimbursement complexity; however, current demand for measurable ROI solutions supports resilience.
FX translation: USD reporting vs GBP dividend introduces coverage variability across periods.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
20/03/2025	17/04/2025	Interim	13.50p	GBX
27/11/2025	18/12/2025	Final	18.50p	GBX

Total (Annual Dividends Per Share): 32.00p

Dividend Yield = Annual Dividends Per Share (32.00p) ÷ Share Price (1890p) = 1.69%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/11/2025	18/12/2025	Final	18.50p	GBX
20/03/2025	17/04/2025	Interim	13.50p	GBX
28/11/2024	18/12/2024	Final	16.00p	GBX
21/03/2024	15/04/2024	Interim	13.00p	GBX
23/11/2023	15/12/2023	Final	16.00p	GBX
23/03/2023	14/04/2023	Interim	12.50p	GBX
24/11/2022	16/12/2022	Final	15.50p	GBX
24/03/2022	14/04/2022	Interim	12.50p	GBX
25/11/2021	21/12/2021	Final	15.50p	GBX
18/03/2021	15/04/2021	Interim	12.00p	GBX
19/11/2020	15/12/2020	Final	15.00p	GBX
19/03/2020	16/04/2020	Interim	11.50p	GBX
28/11/2019	19/12/2019	Final	15.00p	GBX
14/03/2019	11/04/2019	Interim	11.00p	GBX
08/11/2018	06/12/2018	Final	14.00p	GBX
29/03/2018	20/04/2018	Interim	10.0p	GBX
09/11/2017	07/12/2017	Final	11.30p	GBX
30/03/2017	20/04/2017	Interim	8.70p	GBX
10/11/2016	08/12/2016	Final	9.00p	GBX
17/03/2016	01/04/2016	Interim	7.50p	GBX
19/11/2015	15/12/2015	Final	7.70p	GBX
26/03/2015	24/04/2015	Interim	6.30p	GBX
13/11/2014	16/12/2014	Final	6.80p	GBX
26/03/2014	25/04/2014	Interim	5.70p	GBX

Year	Interim	Final	Currency	Total	Change
2024	13.000	16.000	GBX	29.000	1.750
2023	12.500	16.000	GBX	28.500	1.780
2022	12.500	15.500	GBX	28.000	1.810
2021	12.000	15.500	GBX	27.500	3.770
2020	11.500	15.000	GBX	26.500	1.920
2019	11.000	15.000	GBX	26.000	8.330
2018	10.000	14.000	GBX	24.000	20.000
2017	8.700	11.300	GBX	20.000	21.210
2016	7.500	9.000	GBX	16.500	17.850
2015	6.300	7.700	GBX	14.000	12.000
2014	5.700	6.800	GBX	12.500

Number of Shares:

Payment	Paid	Amount
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