Craneware eyes record sales after contract wins

Edinburgh-based healthcare software company Craneware today said it was on track for its third consecutive year of record sales after picking up two new 'significant' contracts.

Craneware chief executive Keith Neilson. Picture: Contributed

The Aim-quoted firm, which develops billing software for US hospitals, has won a deal with a “multi-hospital group” that it set to bring in revenues of more than $8 million (£6.2m) over the coming five years.

The latest win follows a five-year deal in February, worth more than $7.5m, spanning 50 hospitals.

As a result, Craneware said the value of “new sales” contracts signed during the year ending 30 June has risen more than 60 per cent to about $58m, compared with $35.9m a year earlier, with the average new contract length maintained at five years.

This performance puts the company on track to deliver an 11 per cent in full-year revenues and a 10 per cent rise in adjusted underlying pre-tax profits when it announces its annual results on 6 September.

Chief executive Keith Neilson said: “US healthcare providers continue to address the challenges the new value based re-imbursement environment brings. We believe our continued sales growth demonstrates the strategic importance of Craneware and its Value Cycle solutions to them as they meet these challenges.

“The ongoing investment we are making to develop solutions that discover, convert and optimise value for healthcare providers, combined with our own historical sales successes, double-digit revenue and adjusted Ebitda growth, give management confidence in its ability to deliver continued future growth as well as increasing stakeholder value.”