Craneware up 12% on strong sales, new contract

Shares of Edinburgh-based Craneware, a software firm that specializes in the US healthcare market, rose about 12% on Tuesday after it issued a trading update for the year ended June 30, 2018, which detailed “strong underlying new sales growth that increased by approximately 100%” and included a “significant” new contract.

“The group is pleased to announce continued outstanding performance, as it executes on its growth strategy,” said Craneware.

“There has been strong underlying new sales growth that increased by approximately 100%.

“This includes a further significant new contract signed at the end of the year.

“This contract with a large healthcare provider network in the Eastern US is for the company’s Pharmacy ChargeLink solution …

Renewals by dollar value have continued at over 100% in the period.

“In accordance with the company’s revenue recognition policy, the majority of the revenue resulting from both new and renewal sales successes will be recognised over future periods, adding significantly to the acceleration of the group’s long term visibility of revenue under contract.”

Craneware CEO Keith Neilson said: “These record results demonstrate the ongoing momentum we are seeing across all strata of hospitals including large and complex health systems as they embrace the realities of value-based economics within healthcare.

“The strength of our solutions and the value they deliver to our customers, 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 to deliver better healthcare through sustainable 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 continuing ability to deliver increasing stakeholder value year on year whilst investing in our future.”