Edinburgh-based Craneware plc, a provider of software for the US healthcare market, said its revenue rose 8% to $91 million in the six months ended December 31, 2023.
In a trading update, Craneware said adjusted EBITDA increased 8% to $27.5 million, in line with board expectations.
“With much of the sales success in the period still to convert to revenue, Annual Recurring Revenue (ARR) has grown approximately 3% to c.$171.4m (H1 FY23: $166.4m) whilst retaining a Net Revenue Retention of 100%,” said the Edinburgh firm.
“The group has continued to utilise its cash reserves to reduce debt and interest costs.
“The resulting lower interest rate charges combined with the growth in the period, partially offset by increased UK corporation tax, share based payments and amortisation, has seen Adjusted EPS return to growth of c.3%, (H1 FY23 -6%), reversing the reduction experienced in the prior year.
“The group maintains a strong balance sheet, with total bank debt reduced to $59.2m (H1 FY23: $107.9m), and healthy total cash reserves of $63.9m (H1 FY23: $90.8m).”
Craneware said its board has agreed “it is appropriate to extend the share buyback programme, due to expire on 17 January 2024, for a further three months to 17 April 2024, under the same terms as previously announced.”
In its outlook, Craneware said: “The group’s investment in the Trisus platform, along with the recent launch of its optimisation suites and innovative new partnerships, means it has entered the second half of the year in a strong position to benefit from the increasing confidence in its market.
“Craneware continues to see significant new opportunities to support its customers as they strive to deliver better value in US Healthcare.
“The solid foundation of ARR combined with the breadth of solutions within the Trisus platform and the scale of data flowing through it, means the company remains confident in the accelerating growth momentum and the return to double digit growth rates in the near term.”
Craneware CEO Keith Neilson said: “With US healthcare and our hospital customers re-focusing on the future, the drive to better value in healthcare has returned to the forefront of their strategic priorities and we are pleased to see the returning confidence having a positive impact on our financial results.
“The importance of digitalisation, to meet these challenges, has never been clearer.
“With approximately 40% of all US hospitals as customers, our considerable data assets and expanded offering allow us to derive meaningful insights for them to improve their operational efficiency, ensure their financial strength and continue to deliver outstanding care to their communities.
“Our investments made in prior years in the move to the Cloud and our Trisus platform, mean we are well positioned to be the strategic partner US Hospitals and pharmacies need, now and in the future, and we look forward with confidence.”