Craneware, the Scottish company providing software to the US healthcare market, said trading remains positive and profitability is ahead of market expectations. 

Continued sales momentum means the board expects a 12% increase in adjusted EBITDA  to over $65m (FY24: $58.3m.

Revenue is expected to growth by 9% to $205.7m (FY24: $189.3m) and annual recurring revenue by 7% to c.$184m (FY24: $172.0m).

In its trading update, the group said it continues to generate cash which has been used to invest in the product portfolio, reduce debt and interest costs.

Craneware’s partnership with Microsoft is progressing well, raising the profile of The Craneware Group and its AI-powered offerings with hospital CIOs across the US, providing the basis for increased market penetration in future periods. AI development in conjunction with Microsoft continues as planned.

Chief executive Keith Neilson made no mention of the recent bid approach from Bain Capital which the board rejected.

“We are pleased to see our growth rates accelerating and profitability exceed expectations, with this year’s performance supporting a move to sustainable, double-digit growth,” he said.

“With continued strong cash generation, and a strategic position as a source of independent data and insights at the heart of the US healthcare market, we are excited by the opportunity ahead, for us and our customers, and look to the future with confidence.” 

Craneware will announce results for the year ended 30 June on 15 September.