Acquisition boost

Sentry boosts progress at healthcare firm Craneware

Keith Neilson
Keith Neilson: considerable opportunties

Healthcare billing company Craneware saw its revenue for the half year more than double as the board said integration of Sentry Data Systems, acquired last July, is progressing ahead of plan.

The Edinburgh-based software company, whose sales operations are entirely in the US, said strong progress across all areas of the enlarged group positions the business well for accelerated growth.

It acquired Sentry in a $400 million (£282m) deal that increased its presence in the US pharmacy market. 

Revenue for the six months to the end of December rose 111% to $80.2m, with adjusted EBITDA up 78% to $23.7m and adjusted profit before tax up 68% to $17.1m.

A 4% rise in the interim dividend to 12.5p per share (H1 2021: 12p per share) has been declared. Shares in the group closed 0.9% higher at 1725p.

Craneware’s 180-strong staff, mainly based at its offices in Canon Mills, now serve more than 2,000 US hospitals and nearly 10,000 clinics and retail pharmacies. It produces software that collects, analyses, compares, verifies and corrects data so US hospitals can improve their financial and operational performance as well as patient outcomes.

Keith Neilson, CEO, said: “The combined scale and expertise of the enlarged Craneware Group provides the potential for acceleration in ARR [annual recurring revenue] growth over the medium term, as we unlock the considerable cross and upsell opportunities within our enlarged customer base.

“Through our increased sales and marketing operations and unique breadth of offering we are also well placed to secure increased market share as the US healthcare industry continues its drive towards achieving greater value in healthcare.

“Whilst remaining cognisant of the challenges our customers continue to face; the Group remains on-course to deliver results for the current year in line with management’s expectations.

“With a strong balance sheet, high levels of recurring revenues, high customer retention rates and an ARR of $165m as at 31 December 2021, we have a strong financial foundation from which to accelerate growth and investment to fulfil our potential, thereby increasing shareholder value.

“We are delighted to see our first cross-sales within the enlarged group, which we expect to accelerate once the COVID 19 headwinds fully dissipate. With an expanded opportunity we look to the future with considerable excitement and confidence as we work as one team to transform the business of US healthcare.”

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