Craneware sees confidence return to care market
Scottish tech company Craneware, which supplies billing software to the US healthcare market, has seen an acceleration in revenue growth amid growing confidence in the sector.
Revenue for the six months to the end of December has grown by 8% to c.$91m (H1 FY23: $84.7m), and adjusted EBITDA has increased 8% to c.$27.5m (H1 FY23: $25.5m), in line with board expectations.
With much of the sales success in the period still to convert to revenue, annual recurring revenue has grown approximately 3% to c.$171.4m (H1 FY23: $166.4m).
The group is using its cash reserves to reduce debt and interest costs and it maintains a strong balance sheet, with total bank debt reduced to $59.2m (H1 FY23: $107.9m), and healthy total cash reserves of $63.9m (H1 FY23: $90.8m).
The board has extended the share buyback programme, due to expire today, for a further three months to 17 April, under the same terms as previously announced
Chief executive Keith Neilson said: “With US healthcare and our hospital customers re-focusing on the future, the drive to better value in healthcare has returned to the forefront of their strategic priorities and we are pleased to see the returning confidence having a positive impact on our financial results.
“The importance of digitalisation, to meet these challenges, has never been clearer. With approximately 40% of all US hospitals as customers, our considerable data assets and expanded offering allow us to derive meaningful insights for them to improve their operational efficiency, ensure their financial strength and continue to deliver outstanding care to their communities.
“Our investments made in prior years in the move to the Cloud and our Trisus platform, mean we are well positioned to be the strategic partner US Hospitals and pharmacies need, now and in the future, and we look forward with confidence.”