Craneware has reported adjusted earnings before tax rising 10% from $30.3m to $33.4m, on the back of revenue increasing 6%, from $100m to $105.7m.
The Edinburgh-headquartered healthcare financial software group’s unaudited results for the six months ended 31 December 2025 also showed an adjusted earnings margin of 32% – up from 30% year-on-year.
Total bank debt fell from $31.6m to $23.4m during the period, ending with $71.2m of cash and cash equivalents, including cash in transit of $30.3m.
The “strong sales performance and continued high levels of customer retention” delivered growth in annual recurring revenue of 4%, from $177.3m to $184.2m, alongside net revenue retention at 103%, “reflecting continued expansion sales and low levels of churn”.
The financial update noted that “current market presents interesting opportunities for M&A, however the relative valuations of private companies remain above the depressed valuations of public companies and restricts our ability to deliver accretive transactions”.
Craneware continues to assess the market for aligned companies that will accelerate the growth strategy. Its acquisition criteria mean a target company must satisfy at least one of the following: “the addition of relevant data sets; the extension of the customer base; the expansion of expertise; and the addition of applications suitable for the US hospital market.”
There was an increase in the annual value of new sales in the period, with sales to new customers increasing from 2% to 12% of sales, reflecting increased competitive take-out rate, “with each new customer providing future significant expansion opportunity”.
The company intends to commence a share buyback programme of $25m, with an announcement with details of the buyback, and its commencement, set to be made in due course.
Chief executive Keith Neilson commented: “The increasing levels of competitive wins and take-outs we have seen in the first half of the year demonstrate the importance of the Trisus platform, the benefit of our independence to our hospital customers and our ability to leverage AI in combination with our extensive proprietary data sets to deliver the solutions our customers need, when they need them.
“The US healthcare market continues to evolve at pace, and with each new piece of legislation or change, the need for data-led insights and a secure and scalable technology partner grows.
“We have never been more confident in the vital role we play in enabling our customers to navigate these changes with confidence, while maintaining their financial strength and delivery of care.
“With our wealth of proprietary data, deep industry expertise, longstanding and extensive customer base, and growing AI capabilities, the board looks to the future with confidence.”