Craneware order book is reason to be cheerful

STOCK market darling Craneware will begin rebuilding investor confidence in its business model this week when the Edinburgh-based software firm releases its full-year results.

Chief executive Keith Neilson is expected to 
reveal the hospital billing specialist’s order book for the next three years is 
already 80 per cent full as he tries to restore the City’s faith in the technology stock, which in the past was hotly tipped by analysts.

Shares in the firm have halved in value since October after a lack of big contracts in the United States triggered a series of broker downgrades.

The stock plunged by a third on one day alone in January after the company failed to sign any big contracts with American hospitals during the first half of its financial year.

Paul Morland, an analyst at house broker Peel Hunt, said: “It has been a tough year for Craneware, but – with activity levels still high, as confirmed by recent strong results from US peer Medassets – we expect the order book to recover in the first half of 2013.

“We expect forward three-year visibility at end June to show that over 80 per cent of our 2013 forecast is already covered.

“Although the main reason for this is that forecasts have been reduced, it should help to start rebuilding confidence in the Craneware model.”

An industry insider said that interest in the stock was at record levels as the City shows a renewed appetite for Craneware.