Craneware warns over sales slump

Craneware chief executive Keith Neilson said the group has 'a significant and growing pipeline'. Picture: Contributed.

Shares in Edinburgh-based hospital billing software provider Craneware came under pressure after it warned of slower sales in the second half.

In an update to the market, the Aim-quoted group said new business flows have disappointed in the last six months of its financial year, which ends in June, due to “the timing and quantity of sales”.

Revenue growth for the 12-month period is now expected to be around 6 per cent, while earnings have been hit by one-off costs of around $1.5 million (£1.2m) relating to professional fees for an acquisition opportunity that it decided not to pursue.

Chief executive Keith Neilson remained confident, adding: “We have a significant and growing pipeline, which we are focused on converting.”

Russ Mould, AJ Bell investment director, said that the update implied “a marked deceleration in earnings growth after the double-digit increases generated over the past four or five years”.