Strong first half performance
$16m contract win for billing firm Craneware
Keith Neilson: ‘ongoing momentum’
Healthcare billing company Craneware has secured a contract worth in excess of $16m over five years as it continues to perform strongly.
In an update on the first half of the financial year the Edinburgh-based business has seen strong underlying sales growth.
This has been underpinned by a “significant” new contract with one of the largest healthcare provider networks in the US.
The unnamed customer has been trialling Craneware’s software in a small number of hospitals which has now been rolled out.
Craneware expects to report increases in both revenue and adjusted EBITDA in the range of 15% to 18% for the six month period ended 31 December 2017, continuing the double digit growth delivered in the prior year.
The group maintains healthy cash reserves of over $50m (H117: $45m) and has a further funding facility available from the Bank of Scotland of up to $50m. It continues to investigate opportunities to deploy these reserves.
The board is confident in meeting market expectations for the full year.
Keith Neilson, CEO said: “These results, including a contract with one of the largest healthcare providers in the US, demonstrate the ongoing momentum we are experiencing in the business.
“The strength of our solutions and the value they deliver to all strata of customers, including large and complex health systems, allows us to support our customers as they address the challenges resulting from the continued evolution of the US Healthcare market.
“We are playing an increasingly strategic role in assisting healthcare providers as they look to improve and sustain their financial performance, whilst mitigating operational and compliance risks.
“These factors combined with our financial strength and high levels of visible revenue for future years, gives management confidence in its ongoing ability to deliver increasing stakeholder value this year and in the future.”
Craneware will announce first half results on 6 March.