Healthcare-focused Craneware outlines strong prognosis despite profit dip

Edinburgh-based software firm Craneware has said it is confident of returning to double-digit organic growth, after seeing a dip in full-year profit due to its acquisition of Sentry Data Systems.

The Aim-quoted firm, which is focused on the US healthcare market, announced in June that it had sealed a $400 million (£292m) takeover and raised millions from investors to help fund the purchase of the Florida-based firm.

Craneware has now revealed that pre-tax profit in the year ending June 30 fell to $13.2m from $19.3m in the prior year, reflecting exceptional costs related to funding the deal, which it added will “significantly” expand its “scale, offering and opportunity”. However, core earnings increased 8 per cent to $27.1m

Basic earnings per share fell to 48.1 cents from 62.8 cents, while the business flagged a proposed final dividend increase to 15.5p per share from 15p, giving a total dividend for the year of 27.5p per share, a year-on-year jump of 4 per cent.

'We look to the future with considerable excitement and confidence,' says Craneware boss Keith Neilson. Picture: contributed.

Revenue reached $75.6m, representing a year-on-year jump of 6 per cent, while year-end cash amounted to $235.6m, up from $47.9m, after raising $187.3m net via a share placing and prior to the completion of the Sentry acquisition.

Looking ahead, Craneware – whose US base is in Atlanta – forecast continued sales momentum across the group, with the integration of Sentry “proceeding faster than original expectations”.

Chief executive Keith Neilson said: “Our team delivered a positive performance in the year, against the ongoing backdrop of the pandemic, supporting our customers through an incredibly challenging period while continuing to execute on our strategy. We experienced continued sales momentum and strong adoption of our Trisus cloud-based platform, paving the way for accelerated future growth.”

He also deemed the Sentry deal a “transformational point” in Craneware’s journey. “Together, we will offer healthcare organisations innovative new ways to measurably improved operational and financial performance to generate sustainable margins that they can re-invest to provide better care for those underserved communities.

“We have enjoyed early sales momentum across the now-enlarged group and with our expanded opportunity we look to the future with considerable excitement and confidence as we work with the Sentry team to transform the business of US healthcare.”

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