Craneware stock up on strong sales, contract win

Shares of Edinburgh-based Craneware, a software firm that specializes in the US healthcare market, rose about 6% on Monday after a positive trading update for the six months ended December 31 that included a significant contract win.

“There has been strong underlying sales growth which has been extended by a significant new contract with one of the largest healthcare provider networks in the US …” said Craneware.

” … the group expects to report increases in both revenue and adjusted EBITDA in the range of 15% to 18% for the six month period ended 31 December 2017, continuing the double digit growth delivered in the prior year.

“The group maintains healthy cash reserves of over $50m (H117: $45m) and has a further funding facility available from the Bank of Scotland of up to $50m. 

“The group continues to investigate opportunities to deploy these reserves.

“With the growth in contracts signed in the period, continued sales momentum and high levels of revenue visibility, the board is confident in meeting market expectations for the full year.”

Craneware said the new contract is expected to deliver in excess of $16 million of revenue over its initial five year term.

Craneware CEO Keith Neilson said: “These results, including a contract with one of the largest healthcare providers in the US, demonstrate the ongoing momentum we are experiencing in the business.

“The strength of our solutions and the value they deliver to all strata of customers, including large and complex health systems, allows us to support our customers as they address the challenges resulting from the continued evolution of the US Healthcare market.

“We are playing an increasingly strategic role in assisting healthcare providers as they look to improve and sustain their financial performance, whilst mitigating operational and compliance risks.

 “These factors combined with our financial strength and high levels of visible revenue for future years, gives management confidence in its ongoing ability to deliver increasing stakeholder value this year and in the future.”