Shares fall 35% at Edinburgh healthcare firm Craneware

Shares of Edinburgh-based Craneware, a software firm that specializes in US healthcare, plummeted 35% on Friday after it said in a trading update that its sales in the second half of the year “have been lower than anticipated.”

Craneware said: “The group has continued to make progress on its long-term strategic aim to become ubiquitous in US hospitals, as the intelligence layer sitting across all other systems, delivering the information required to improve financial and operational performance.

“This has included the launch of three new products on the Trisus platform.

“However, whilst the group continues to sign new contracts with hospitals of all strata, the timing and quantity of sales closed in the second half of the year have been lower than anticipated, as the market processed these launches.

“As a result, revenue growth for the 12 month period over the prior year is expected to be approximately 6% and adjusted EBITDA growth approximately 10%.

“As flagged at the time of the group’s interim results, capitalised R&D has increased.

“In the year this will be approximately $9m (FY18: $4.7m), reflecting the group’s ongoing commitment to new product development (both recently released products and further development for the future).

“The EBITDA figure has also been adjusted for one-off exceptional costs of approximately $1.5m relating to professional fees for a significant and well-advanced acquisition opportunity that the group decided not to pursue in the period.

“Renewal levels remain within our historic range and the group maintains healthy cash reserves.”