Craneware recovers momentum with growth in sales
Keith Neilson: ‘confident’
Health care software firm Craneware has recovered its momentum following last year’s slip in sales, according to Keith Neilson, chief executive.
The Edinburgh-based company whose business is focused on the US, said it had as strong sales pipeline for the current financial year. It is currently hiring up to 100 software engineers and other staff in Edinburgh and Glasgow.
As at end of last month it had total visible revenues of $72.2m for this year and $200.8m for the three-year period to June 2022 (H1 2019 same three year period: $190.0m)
The board said it was confident in the outlook for the full year and beyond, ane expectations remain unchanged
Profit before tax for the half year to the end of December increased 3% to $9.6m (H1 2019: $9.3m) on standstill revenue of $35.9m.
The company has increased its interim dividend by 5% to 11.5p per share (H1 2019: 11p per share).
It was hit last year by disruption in the processing of new contracts. The shares fell 34% after it declared in June that sales growth would be slower.
Mr Neilson said: “We are pleased to report on a positive sales performance in the first half of the financial year, with new sales over 30% ahead of the first half in the prior year, reflecting the considerable amount of activity that has taken place across the business since the summer.
“Whilst this increase will take time to flow through into our reported financials, we are confident that momentum is now back in the business and the size of the opportunity ahead of us remains intact.
“Importantly, the level of Trisus sales grew in the half, with sales of all four of our current Trisus solutions and the pipeline for these products increasing.
“The positive sales performance in the first half has continued to date, and our pipeline continues to grow, underpinned by the ongoing transition of the US healthcare market to value-based care.
“The board’s expectations for the full year remain unchanged and we look forward to a return to increased rates of growth in future years. We are focused on execution and with strong operating margins, healthy cash balances and a growing sales pipeline, we continue to be excited by the opportunity ahead.”