Craneware on acquisition look-out as profits rise

Keith NeilsonSoftware billing company Craneware is “actively” looking at potential acquisitions after delivering strong sales growth and making steady progress in expanding its product range.

The US-focused group, headquartered in Edinburgh’s Canonmills, said in a statement with half-year results that it “continues to assess opportunities to complement the group’s organic growth strategy and increase speed to market for new products through acquisition.

“The $50 million funding facility provided by the Bank of Scotland announced previously, provides the company with the firepower to carry out strategic acquisitions when these criteria are met.”

Speaking today to Daily Business, chief executive Keith Neilson, said:  “We are actively looking at things at the moment. The opportunities in the US are phenomenal. We are only scratching the surface”

He said he would be worried about using the word recession-proof to describe the sector but it was fairly “robust”.

The company reported a 12% rise in adjusted EBITDA to $7.1m for the six months to the end of December and revenue up 7% to $23.1m (H1 2015: $21.6m).

High levels of cash generation in the period resulted in cash reserves of $45m (H115: $36.4m) having returned $3.1m to shareholders in dividends.

The board declared an interim dividend of 7.5p  (FY15 Interim dividend 6.3p).

Chairman George Elliott said: “With growth in the period in line with management’s expectations, high levels of cash generation and a clear strategic vision, the board is confident in meeting market expectations for the full year and delivering significant growth.”

Mr Neilson (pictured), added: “Major changes in reimbursement and care delivery models have made understanding and reducing the cost of care, while providing quality patient outcomes, mission-critical for every healthcare provider in the US.

“With 50% of healthcare payments anticipated to have a value-based component by 2018, our offerings are expanding to meet the challenges of this value-driven healthcare market and pioneer the value cycle.

“We are confident that our position as a trusted financial performance partner will strengthen and provide us with the opportunity for accelerated long term growth. 

“The strong sales performance in the first half of the year, and our high levels of recurring revenues coupled with a record sales pipeline provide us with confidence for the second half of the year and beyond.”

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