Market opportunity

Craneware ‘confident’ after inflation set back

Keith Neilson
Keith Neilson: healthy cash reserves

Craneware, the Edinburgh-based software company focused on the US health sector, said it remains confident of delivering accelerated growth despite wage-driven inflation eating into its b business last year.

As previously announced, professional services revenue has not returned to pre-pandemic levels and has impacted the full year revenue expectations.

However, the board sees a growing market opportunity, with the need for Craneware products greater than ever. 

The board is confident of delivering results for the year in line with current market consensus, it said in half-year figures published yesterday.

Keith Neilson, CEO, said: “We remain acutely conscious of the ongoing challenges faced by our customers and partners, in particular the impact of inflationary pressures and staffing shortages.

“The pressures they are experiencing strengthens our commitment to providing the tools to more accurately manage their operations and finances, as we seek to transform the business of US healthcare together. 

“We are financially strong, with healthy cash reserves and a solid foundation of Annual Recurring Revenue.

“This, combined with our market leading solutions, breadth of customer base, the scale of data flowing through our platform and the industry drive to achieve better value in healthcare, means we remain confident in our ability to deliver acceleration in our growth rates as the current pressures within the US healthcare market abate.”

The company posted an 8% uplift in EBITDA to $25.5m for the half year to the end of December on a 6% rise in turnover to $84.7m.

It said customer retention rates remain high, at above 90%.

The group has maintained its interim dividend at 12.5p (15.13 cents) per ordinary share (FY22 Interim dividend 12.5p).

Shares closed 30p higher at 1530p.

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