Shares in Craneware have fallen by over 23% after the firm stated that its revenue expectations have been reset to the equivalent of $185m in the current financial year.

The healthcare financial performance solutions firm reported that in the year to 30 June, its revenue remained stable year-on-year, totalling $206m, while its annual recurring revenue (ARR) increased by $1m to $185m.

Furthermore, its adjusted earnings increased by 3% to $67.1m. Craneware described the results as a "robust sales performance", with strong customer retention of over 90%.

However, the group announced that post-year-end, it had identified and responded to a cyber security incident. While there was no disruption to customer services or the group’s core operations, and with an independent investigation verifying that all systems are secure, the process has now entered the remediation phase.

This involves an investigation into the data involved and associated customer and regulatory reporting requirements ongoing.

The financial outcomes are yet to be quantified, including the impact of future customer engagement.

While it remains confident in its long-term outlook for the group and its growth opportunities, it is taking a "prudent view" of its revenue expectations in the current financial year, resetting them to an equivalent of its ARR at $185m.

It added that a comprehensive review of the cost base has been initiated to provide a "solid foundation for future growth", with an expectation that its overall earnings margin will be maintained in the medium term.

CEO at Craneware, Keith Neilson, said that "delivering growth consistently over an 18-year period as a public company is rarely straightforward".

He concluded: "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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