Craneware, the Scottish software provider, has reported record interim financial figures based on stability in its key US healthcare market.

CEO Keith Neilson said the Edinburgh-based company’s focus on efficiency across the hospitals sector means it falls into line with a key plank of current US government policy.

In a statement with results, he said: “Following the US election, hospitals are now expecting a period where they can focus on their fundamentals and make investments to drive strategic growth, which we anticipate will provide a sustained demand environment for our offerings.”

There was increasing engagement from major players within the US healthcare market and together with the company’s “strong financial foundations” it was well placed to execute its growth strategy.

Adjusted profit before tax for the six months to the end of December rose 21% to $20.6m on a 10% rise in group revenue to $100m.

In a post-results briefing with Daily Business, he said: “Trump is looking for better value… and we are trying to reduce admin costs… and provide greater access to tools.”

He said that as of last week the Trump administration had issued 108 executive orders of which only four related to healthcare. This had left it unscathed from cost-cutting. Craneware was also working with many healthcare facilities in poor areas.

The board has declared a 4% hike in the interim dividend to 13.5p, from 13p. Shares have traded at the lower end of their 12-month range.

Mr Neilson repeated earlier frustrations over the liquidity of its shares. With a current market capitalisation of £640m it is one of the larger companies trading on AIM but he would not be drawn on whether it might trade up to the Official List.

On staffing up the company to meet its growth plans, he said hiring the right people was a “global ” issue and that the company had benefited from greater use of AI.

“We can do more with the same number of people,” he said. “It should be on [the agenda of] every business now.”

Market reaction

Harvey Robinson, analyst at Panmure Liberum, said: “Craneware’s half year results are consistent with the trading update in January.

“Guidance for the year is maintained, conservatively in our view (H2 only needs to grow 6.6% to
hit our forecasts). ARR growth of 3%, should pick up in H2 as they lap some platform sales and will count in ARR. Peer reporting is consistent with a return to double digit growth.

“The new US administration has created a noisy backdrop, but a drive for value and transparency is positive for Craneware.

“Craneware ranks 3rd in our software universe on our growth plus margin KPI and is a top pick within UK Software.”

Roger Phillips and Julian Yates at Investec, said: “Headline numbers are in-line with no forecast changes at this stage, but the detail looks good to us and the outlook is for a possible beat near year-end.

“Messaging around the macro outlook continues to be relatively positive. Share price weakness provides a good entry point in our view, with capitalisation-adjusted valuation at an attractive level (c.19x EBITDA).

… more follows