Strong half-year for Scots firm
Craneware in good health amid Trump reforms
Donald Trump’s plans to overhaul the US healthcare programme may prove beneficial to Scottish healthcare billing company Craneware.
The Edinburgh business derives the vast bulk of its revenues from the US and chief executive Keith Neilson said that the need to drive value remains unchanged despite changes in the White House.
Commenting after unveiling strong half-year figures, he said: “The first half of the year has been a period of successful execution against our stated growth strategy, delivering accelerated growth at both the revenue and adjusted EBITDA level.
“We are well positioned to deliver against a market opportunity that is now considerably larger than at any other point in our history.
“Against a backdrop of the recent US Presidential election, the overriding consensus for the need to drive value in US Healthcare has been re-affirmed.
“There is ongoing support for the move to value- based care and increasing consumerism.”
Chairman George Elliott said some details may change under the new president but “it is clear that the fundamentals driving the reform are consistent with those of the previous administration.
“A greater number of people need access to the healthcare system regardless of any pre-existing medical condition, a greater proportion of the population will soon reach the end of their working life and the cost of delivering healthcare is increasing, all putting an unsustainable burden on the US and its citizens.
“This is driving the need for hospitals to have additional insight into their operational, clinical and financial data.”
Mr Elliott said Craneware has continued to invest in its teams, organisation and infrastructure in the US and UK.
“With over 75% of our investment in the US and our continued commitment to grow both our US and UK operations, we remain positive that the business environment in the US will continue to be supportive of our group.”
The company unveiled a 23% rise in pre-tax profits for the half year to the end of December and declared a 16% uplift in the dividend.
Financial Highlights (US dollars)
- Revenue increased 16% to $26.8m (H1 2016: $23.1m)
- Adjusted EBITDA increased 16% to $8.2m (H1 2016: $7.1m)
- Profit before tax increased 23% to $7.5m (H1 2016: $6.1m)
- Adjusted basic EPS increased 15% to 21.6 cents per share (H1 2016: 18.8 cents per share)
- Strong cash position maintained at $45m (H1 2016: $45m) following dividend payment of $3.2m
and investments of $4.5m made during the period
- Proposed interim dividend increased 16% to 8.7p (H1 2016: 7.5p per share)
- Consensus for the need to drive value in US Healthcare provides supportive market dynamics
- Continued growth supported by underlying sales and sales pipelines
- Expansion of the Value Cycle solution suite on track with initial components of the cloud-based
Trisus Enterprise Value Platform being rolled out during the calendar year
- Positive progress with Craneware Healthcare Intelligence, a new solution set developed to
address the significant market opportunity for healthcare cost analytics
- Total visible revenue of over $55.4m for the current year and $155.5m for the three year period
to June 2019 (H1 2016 same three year period: $128.1m)
- Board confident in outlook for the year