Shares of Edinburgh-based Craneware, a provider of software for the US healthcare market, fell as much as 10% after it published a trading update saying it is prudent to presume “that professional services contribution will not recover in the current year to historic levels, impacting the overall level of group revenue growth.”

In a trading update for the six months ended December 31, 2022, Craneware said: “Adjusted EPS (earnings per share) continues to be impacted by the recent significant increases in interest rates and we expect this to continue in the second half.”

Craneware said its group revenues in H1 of FY23 are expected to increase 6% to $84.7 million and adjusted EBITDA by 8% to $25.5 million.

“Software revenues remain robust and we have seen bookings across our product offerings, despite our end market suffering the effects of inflationary pressures as it continues to recover from the pandemic,” said the Edinburgh firm.

“Professional services revenues, however, continue to be impacted and have remained at 8% of total revenues, rather than seeing growth back to the more typical level of 15%. 

“Our ongoing cost control across the group has delivered growth in adjusted EBITDA in line with our expectations and we expect to deliver full year adjusted EBITDA in line with board expectations.”

Craneware CEO Keith Neilson said: “Healthcare providers, both globally and in the US, continue to face many challenges, building back post pandemic and coping with inflationary pressures.

“Against this backdrop, we have delivered another robust performance, growing revenues and adjusted EBITDA, while maintaining a strong balance sheet and high levels of recurring revenue.

“Through the increased financial and operational insight our offerings provide our customers, we are well placed to support them through these difficult times and ultimately deliver on our growth ambitions.”