Craneware first-half revenue up 16% to $26.8m

Edinburgh-based Craneware, a software firm that specializes in the US healthcare market, said its first half revenue to December 31 increased 16% to $26.8 million and profit before tax increased 23% to $7.5 million amid “supportive market dynamics.”

Craneware is proposing to increase its interim dividend 16% to 8.7p.

Craneware said it had “total visible revenue of over $55.4 million for the current year and $155.5 million for the three year period to June 2019 …”

Craneware chairman George Elliott pointed to healthy levels of cash generation in the period resulting in cash reserves of $45 million after returning $3.2 million to shareholders in dividends and investing $4.5 million in new product development and the firm’s employee benefit trust.

Craneware shares have soared more than 50% in the past year to give it a stock market value of more than £320 million.

Craneware CEO Keith Neilson said: “The first half of the year has been a period of successful execution against our stated growth strategy, delivering accelerated growth at both the revenue and adjusted EBITDA level.

“During the period we have taken significant strides forward in terms of delivering our expanded product suite, educating our market place and also further investing in our people. 

“These ongoing achievements mean we are well positioned to deliver against a market opportunity that is now considerably larger than at any other point in our history. 

“Against a backdrop of the recent US Presidential election, the overriding consensus for the need to drive value in US Healthcare has been re-affirmed. 

“There is ongoing support for the move to value-based care and increasing consumerism.

“Our Value Cycle software suite will continue to help US healthcare providers meet the challenges they will face as they navigate the ongoing re-imbursement model changes.  

“These supportive market drivers, our investment for the future and our continued profitable growth give us confidence in continuing to deliver value for our stakeholders.”