US contracts driving Craneware

Hospital billing software firm Craneware unveiled two US contracts yesterday as it reported that revenues grew by a third in the last year.

The Edinburgh-based company said it made two "substantial" sales to multi-hospital groups in June.

Shriners signed a five year contract to use three of Craneware's products at its 20 hospitals across America while an unnamed ten-hospital group signed a three year contract.

Values for the contracts were not given but analysts at Numis said they were likely to be worth between $5 million (3.1m) and $8m.

Craneware, which bought a US rival in December, said revenue for the year ended 30 June is expected to have grown by about 34 per cent from the $28.4m reported in 2010, while profit excluding depreciation and other exceptional charges would be up 30 per cent to around $10m.

Chief executive Keith Neilson, pictured, said: "We are delighted to have closed the year in such a positive manner, securing strong competitive wins with two large multi-hospital groups."

He said that a drive to regulate hospital billing in the US should favour the business. The US is Craneware's key market.

"The drivers for our business continue to grow and we look to the future with confidence," he said.

Numis analyst Will Wallis said: "The group's market position and proposition remain very strong, in our view."