Edinburgh-based Craneware, a software firm that specializes in US healthcare, said on Tuesday its profit before tax increased 3% to $9.6 million on flat revenue of $35.9 million in the six months to December 31, 2019.

Interim dividend increased 5% to 11.5p per share.

Craneware shares fell about 3.6% to around £18.70 to give the firm a current stock market value of around £508 million, according to Reuters data.

In its outlook, Craneware said it has a strong sales pipeline for the current financial year.

“As at end of February 2020, total visible revenues of $72.2m for the current financial year and $200.8m for the three-year period to June 2022 (H1 2019 same three year period: $190.0m),” said the Edinburgh firm.

Craneware CEO Keith Neilson said: “We are pleased to report on a positive sales performance in the first half of the financial year, with new sales over 30% ahead of the first half in the prior year, reflecting the considerable amount of activity that has taken place across the business since the summer.

“Whilst this increase will take time to flow through into our reported financials, we are confident that momentum is now back in the business and the size of the opportunity ahead of us remains intact …

“The positive sales performance in the first half has continued to date, and our pipeline continues to grow, underpinned by the ongoing transition of the US healthcare market to value-based care.

“The board’s expectations for the full year remain unchanged and we look forward to a return to increased rates of growth in future years …”