Craneware signs $1.5m US hospital contract

CRANEWARE, one of Scotland's most successful flotations of recent years, has signed a "significant" $1.5 million (£950,000) contract with a US hospital as it continues its assault on the highly lucrative American healthcare market.

The four-year contract is for the Livingston-based software firm's fifth product, Supplies ChargeLink.

The software helps hospitals in the US keep better track of the medical supplies on which they are entitled to claim reimbursement.

Craneware, founded by Keith Neilson, a former Balerno High School pupil, and his childhood friend Gordon Craig, says many hospitals in North America still calculate what they are owed manually.

The contract is the largest to date for ChargeLink and comes ahead of the launch of the firm's next product later this year.

Craneware is considered a rising star on the Scottish business scene although the firm sells its products to the US.

It recently unveiled bumper annual sales, which rose 23 per cent to $28.4m in the 12 months to 30 June while pre-tax profits also soared 24 per cent to $7.3m.

Neilson believes recent reforms by US President Barack Obama will deliver a further boost to the company as Washington seeks to add an additional 40m uninsured citizens to the healthcare system by 2014.

Neilson is on the hunt for potential acquisitions worth up to $30m.

Shares in the firm have gained 330 per cent in value since the firm floated on AIM at 128p in 2007 to great demand - Craneware's 20m placing was twice oversubscribed. The stock closed yesterday at 551p.

Neilson said: "This is a significant deal for us, validating our recent investment into both product development and our sales team."