Uplift in sales sees Craneware return to growth
Keith Neilson: positive sales performance
Healthcare billing company Craneware has reported a return to revenue growth after a strong increase in sales.
The Edinburgh-based firm which is focused on the US health sector, said sales have benefitted from an increased number of contracts being secured, as it worked through the backlog of contracts delayed from the second half of 2019.
It also saw an increase in sales of the company’s new cloud base platform, Trisus, and a strong performance from the company’s core product, Chargemaster Toolkit.
Profits are also expected to be up 10% on the first half of the prior year. The board expects full year results to be in line with forecasts.
The upgrade follows a setback last year. Shares in the company fell 34% after it declared in June that sales growth would be slower.
In September the company reported adjusted EBITDA up 11% over the year to the end of June and profit before tax fell from $18.9m to $18.3m as a result of $1.2m one-off costs related to a significant proposed acquisition that the board decided not to enter into during the year.
In today’s update Keith Neilson, CEO said: “We have been pleased by the strong new sales performance and have seen an indication that sales cycles are shortening, which bodes well for continued sales momentum in the second half of the year. This trading performance and progress with the Trisus platform demonstrate the renewed momentum we are experiencing in the business.
“The ongoing transition to value-based care is a powerful underlying driver for our existing solutions and Trisus platform. We are committed to providing our customers with the tools they require to continue to deliver outstanding care to their communities and are passionate about the central role we will play in the ongoing evolution of the US healthcare market.
“The positive sales performance in the first half, combined with our extensive customer base, innovative product offering, high recurring revenues and financial strength, mean the board expects to meet market expectations for the year and is confident in our ability to deliver long-term, sustainable growth.”