Edinburgh-based Craneware plc, a provider of software for the US healthcare market, published a positive update on trading for the six months ended December 31, 2024, and said it appointed a Non-Executive Director.
“The Group has enjoyed another period of positive trading, meeting management’s expectations of double-digit growth of c.10% to exceed $100.0m of revenue (H1 FY24: $91.2m), and adjusted EBITDA of c.$30.3m (H1 FY24: $27.5m),” said Craneware.
“Annual Recurring Revenue (ARR) has, so far, grown by approximately 3% to c.$177m (H1 FY24: $171.4m), with continued sales momentum and Net Revenue Retention above 100%. These sales have included continuing success of the Trisus Platform Partner offerings, and the first major customer contract secured via the Microsoft Azure Marketplace.
“The Group continues to deliver high levels of operating cash conversion, which has been used to invest in our product portfolio, reduce debt and interest costs, with total bank debt reduced to $31.6m (H1 FY24: $59.2m), whilst retaining healthy total cash reserves of $72.2m (H1 FY24: $63.9m).”
Craneware also announced the appointment of Susan Nelson as Non-Executive Director, with effect from January 16, 2025.
“Susan is an experienced senior US healthcare executive currently holding the role of Executive Vice President and Chief Financial Officer at MedStar Health, an $8.3 billion integrated healthcare system in the Maryland and Washington, D.C. region,” said Craneware.
“MedStar Health is the medical education and clinical partner with Georgetown University. Susan’s role includes responsibility for the health care system’s finances, including reporting, planning, revenue cycle, capital management and investment activities, managed care contracting, business transformation, business development, enterprise analytics and performance improvement.”
On its outlook, Craneware said: “Following the election, US hospitals are now expecting a period of stability and investment in strategic growth, which the Board anticipates will provide a sustained demand environment for Craneware’s offerings.
“The strength of the Company’s balance sheet, high levels of recurring revenue and strong cash generation provide Craneware with solid foundations, and the ability to fully absorb the impact of National insurance increases in the United Kingdom, as it executes on its growth strategy, capitalising on its strategic position at the heart of the US healthcare market.
“As a result, the Group continues to trade in line with current market expectations for the year ending 30 June 2025 and is pleased with the accelerated growth delivered in the period.”
Craneware CEO Keith Neilson said: “We are pleased to have delivered another healthy first half performance, demonstrating our continued progression to sustainable double-digit growth, as customers increase their use of our Trisus platform and platform partner offerings.
“The pace of innovation taking place across our organisation in collaboration with Microsoft and Oracle is considerable, and we look forward to stepped increases in our joint marketing initiatives in the coming months.
“With our prior sales successes now converting into ARR growth, continued strong cash generation and an increasingly strategic position as powerful source of independent data and insights at the heart of the US healthcare market, we look to the future with confidence.”