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Medical billing company 'confident'

Craneware building on record sales performance

Keith NeilsonMedical billing company Craneware says sales continue to be strong as it builds on its operations in the US health care market.

The total value of contracts signed for the year was $72.5m, building on the previous year’s record sales performance.  

In a trading update, it said the Edinburgh group’s revenue recognition policy retains focus on long term sustainable growth and mitigates against year on year fluctuations in the total value of contracts signed.

“The vast majority of the revenue from these sales has not been recognised in the year to 30 June 2015, and will instead benefit future years. Accordingly the Group expects to report revenues in a range of $44.5m to $45m (FY14: $42.6m) and deliver an adjusted EBITDA in a range of $14.0m to $14.5m (FY14: $13.1m).

“Other key performance indicators for the Group continue to trend well including renewals in the year above 100% (by $ value) with strong cash generation resulting in cash reserves in excess of $40m at 30 June 2015 (2014 $32.6m).

Keith Neilson, chief executive, said: “We are delighted with the continued level of strong sales throughout the period that underpin the group’s financial and operational performance.

“We believe this continues to demonstrate our solutions’ importance in supporting US hospitals as they transition towards value based healthcare.

“Having now defined the “Value Cycle” for US Healthcare providers, Craneware’s leading position in providing solutions to discover, convert and optimise value for them along with the Group’s ongoing financial performance, gives management confidence in its ability to deliver continued and increasing stakeholder value.”

The Company will announce its Full Year Results on 8 September.

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