New bank support for 'strategic opportunities'
Craneware expecting higher profits for first half
Craneware, the Scottish company which provides billing software for the US healthcare market, said it expects profits and turnover to be higher than previously forecast following a strong performance in the first half of the year.
New sales contracts have risen 15% compared to the same period last year and renewals by dollar value have continued at over 100%.
The Edinburgh-based group now says it will report an increase of more than 10% in adjusted EBITDA and a 7% increase in recognised revenue for the six months ended 31 December.
It continues to generate cash and has reserves of $45m (v $41.8m) and has secured a funding facility from Bank of Scotland of up to $50m for “strategic opportunities”, thought to include acquisitions.
The board said it is confident in meeting market expectations for the full year. It will announce half-year results on 8 March.
Keith Neilson (pictured), chief executive, said: “We are seeing the initial success of the ‘Value Cycle’, our vision for the process and culture by which US healthcare providers pursue quality patient outcomes and optimal financial performance, in our continued strong sales performance.
“The group’s strong financial position allows us to evaluate our options as we look to enhance and add solutions which support our customers in the new value-based reimbursement environment.
“These factors combined with revenue recognition from contracted sales made in prior periods, gives management confidence in its ability to deliver increasing stakeholder value through this year and in the future.”
Ewan Kinnear, Business Development Director at Bank of Scotland, said “This is the next major step in building a strategic partnership with Craneware and its management team and we are pleased to have delivered this substantial new funding package for the business at this important time.
“The company does over 90% of its business in the US, highlighting the real opportunities that exist for Scottish companies to grow their businesses internationally.”