Health care billing software company Craneware is confident of a strong second half following a solid start to the year which saw a 20% rise in underlying profits.
Craneware is headquartered in Edinburgh, with offices in Atlanta and Pittsburgh employing over 320 staff.
Keith Neilson, CEO, pictured, said: “We are delighted to report another strong set of results, delivering against our growth strategy. The strength of our trading performance to date and double-digit rate of growth demonstrate the ongoing momentum we are experiencing in the business and the growing market opportunity we see.
“As we enter the second half of the financial year we do so with excitement as we continue to build the business in line with the large market opportunity available to us. We believe that the breadth of our customer base and the quantity and quality of data within our solutions gives us the opportunity to sit at the heart of the move to value-based economics; collating and analysing the information that will support hospital-wide decision making and ultimately have a positive impact on the quality of healthcare.
“Our growing market opportunity, the strength of our sales pipeline and increasing long-term revenue visibility, mean we enter the second half of the financial year with great confidence for the future and the ongoing success of Craneware.”
Chairman George Elliott said that the company’s product range combined with the data that the Craneware software has collected over the past 20 years and the strong relationships forged with customers “gives us the opportunity to sit at the heart of the transition taking place in the US healthcare industry. Our solutions are providing genuine insight into the economics of healthcare provision.”
Financial Highlights (US dollars) for half year to 31 December
· Revenue increased 15% to $35.8m (H1 2018: $31.1m)
· Adjusted EBITDA increased 20% to $11.6m (H1 2018: $9.7m)
· Profit before tax increased 7% to $9.3m (H1 2018: $8.7m)
· Adjusted basic EPS increased 19% to 30.2 cents per share (H1 2018: 25.4 cents per share)
· Cash position of $38.7m (H1 2018: $52.2m), following significant returns to shareholders and investments in the period
· Interim dividend increased 10% to 11p (H1 2018: 10p per share)
Operational Highlights
· Supportive market environment as the US healthcare market evolves towards value-based care, with a critical dependency on accurate financial and operating data
· Strong sales activity and opportunities across the product suite and across all classes of hospital providers
· Increasing market engagement with our newly launched cloud-based platform, Trisus
o With 600 hospitals represented at the Craneware Healthcare Summit, 50% of customers that attended are looking to transfer to the Trisus platform within twelve months
· First three Trisus products are now available on general release with a fourth scheduled for release in the second half of the financial year
Market reaction
John Moore, Senior Investment Manager at Brewin Dolphin Scotland, said: “Craneware has delivered another strong set of figures – 15% growth in revenues and a 20% increase in cash generation, which adds to a robust balance sheet that supports not only investment in the business, but a 10% increase in the dividend.
“The company has a solid sales pipeline, with $196.2 million in visible revenues for the next three years – up on $174.3 million – and the fourth of its Trisus products is scheduled for release in the second half of this financial year. Craneware has real trading momentum behind it and, although its share price is well off last year’s peak, this is more a reflection of the general sell-off of AIM-listed shares than the business itself.”
Source: Daily Business