Sales, contract news lift Craneware shares

Shares of Edinburgh-based Craneware, a software firm that specializes in the US healthcare market, rose again after it said it enjoyed “a third consecutive year of record sales performance” and delivered two significant contract wins.

Craneware shares have risen almost 30% in the past year, giving the Tanfield, Canonmills-based firm a current stock market value of about £220 million.

In a trading update for the year ended June 30, Craneware said it had seen more than 60% growth in the value of “new sales” contracts signed of about $58 million  — compared to $35.9 million in 2015 — with the average new contract length being maintained at five years.

Craneware said the first new contract announced on February 2, 2016, was for a 50-hospital group in excess of $7.5 million revenue over its five year life. 

Further, Craneware said it finished the year with a further multi-hospital group contract win, which is expected to deliver revenue greater than $8 million during the next five years.

Craneware said it expects to report an increase of 11% in revenues and 10% in adjusted EBITDA for the year ended June 30, 2016.  

The firm said it had cash reserves in excess of $47 million at June 30, 2016.

“The ongoing investment we are making to develop solutions that discover, convert and optimise value for healthcare providers, combined with our own historical sales successes, double digit revenue and adjusted EBITDA growth, give management confidence in its ability to deliver continued future growth as well as increasing stakeholder value,” said Craneware CEO Keith Neilson.

Craneware describes itself as “the market leader in Value Cycle solutions for the US healthcare market.”

Founded in 1999, Craneware has headquarters in Canonmills, Edinburgh, and offices in Atlanta, Boston and Phoenix employing over 200 staff.

Craneware will announce full year results on September 6.