Craneware, the Scottish software company said it expects to benefit from a period of stability and investment in its key US healthcare market following the presidential elections.

The strength of its balance sheet, high levels of recurring revenue and strong cash generation provide Edinburgh-based Craneware with “solid foundations, and the ability to fully absorb the impact of National insurance increases in the United Kingdom”, it said in a trading update.

The group continues to trade in line with current market expectations for the year ending 30 June 2025 and is pleased with the accelerated growth delivered in the period.

The first half to the end of December showed double-digit growth of about 10% to exceed $100m of revenue, from $91.2m in the corresponding period last year.

Adjusted EBITDA of c.$30.3m compares with $27.5m last time. Annual Recurring Revenue has, so far, grown by approximately 3% to c.$177m (H1 FY24: $171.4m), with continued sales momentum and net revenue retention above 100%.

These sales have included the first major customer contract secured via the Microsoft Azure Marketplace.

The group continues to deliver high levels of operating cash conversion, which has been used to invest in its product portfolio, reduce debt and interest costs, with total bank debt reduced to $31.6m (H1 FY24: $59.2m), whilst retaining healthy total cash reserves of $72.2m (H1 FY24: $63.9m). 

Keith Neilson, CEO, said: “We are pleased to have delivered another healthy first half performance, demonstrating our continued progression to sustainable double-digit growth, as customers increase their use of our Trisus platform and platform partner offerings.

“The pace of innovation taking place across our organisation in collaboration with Microsoft and Oracle is considerable, and we look forward to stepped increases in our joint marketing initiatives in the coming months.

“With our prior sales successes now converting into ARR growth, continued strong cash generation and an increasingly strategic position as powerful source of independent data and insights at the heart of the US healthcare market, we look to the future with confidence.”  

Susan Nelson, an experienced senior US healthcare executive, has joined the board as a non-executive director. She is currently executive vice president and chief financial officer at MedStar Health, an $8.3 billion integrated healthcare system in the Maryland and Washington DC.

Craneware will announce results for the six months ended 31 December 2024 on 11 March.