On course for double digit growth
$6m contract boost as Craneware hits new record
Keith Neilson: ‘increasingly strategic role’
Healthcare software company Craneware has secured a significant new contract, with a large hospital network in the Eastern US which is expected to deliver in excess of $6m of revenue over its initial five year term.
The new contract was announced in a trading update ahead of year end results which states that the Edinburgh-based company – which provides billing systems for hospitals – is enjoying record sales growth. Renewals by dollar value have continued at over 100% in the period.
The US-focused group expects to a 16% rise in revenue and 20% in adjusted EBITDA for the year ended 30 June, extending the run of organic double digit growth delivered in prior years.
Having returned $15m to shareholders and invested a further $4m in the Employee Benefit Trust during the year, the group’s cash conversion has resulted in the cash balances returning to similar levels to those seen at the end of 2017 ($53m).
Keith Neilson, CEO, said: “These record results demonstrate the ongoing momentum we are seeing across all strata of hospitals including large and complex health systems as they embrace the realities of value-based economics within healthcare.
“The strength of our solutions and the value they deliver to our customers, 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 to deliver better healthcare through sustainable 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 continuing ability to deliver increasing stakeholder value year on year whilst investing in our future.”