Sales climb as Craneware capitalises on US healthcare trends

Software provider Craneware has revealed a jump in revenues and pre-tax profits as the healthtech reported increased momentum in its key US market.

Craneware chief executive Keith Neilson called the interim results good evidence of its momentum. Picture: Contributed

The Edinburgh-headquartered firm unveiled a 15 per cent increase in turnover to $35.8 million (£27m) for the six months to the end of December, while profits before tax rose 7 per cent to $9.3m.

Speaking to The Scotsman, chief executive Keith Neilson said the results were “good evidence of the momentum that’s built up the business and is pointing to ongoing acceleration and growth.”

Neilson pointed to a “supportive market environment” as the firm has aligned its software with an upcoming transition in US healthcare.

He said: “We’re seeing the major insurance players and the US government, with bipartisan support, wanting hospitals to move to value-based payment. Rather than reimbursements being done on a volume-based metric, it will be tied into the quality of care that they deliver as well.”

This depends on accurate financial and operating data, which the firm’s product suite supports.

The Aim-quoted firm reported $196.2m in visible revenues for the next three years, up from $174.3m last year, and is due to release the fourth of its cloud-based Trisus products in the second half of the year.

“The second half is not only about delivering the products onto the Trisus platform but making sure we have the processes to onboard as many customers as possible onto that platform. It’s all about the scaleability and getting that right. We’re very excited about the next few months.”

Craneware now serves around one-third of all US hospitals and employs more than 320 staff at its sites in Edinburgh, Atlanta and Pittsburgh.

It proposed an interim dividend of 11p, a 10 per cent increase year-on-year.

Analysts at Investec said the firm had revealed its “best-ever” sales pipeline, while John Moore, senior investment manager at Brewin Dolphin Scotland, said: “Craneware has delivered another strong set of figures which adds to a robust balance sheet that supports not only investment in the business, but a 10 per cent increase in the dividend.

“Craneware has real trading momentum behind it and, although its share price is well off last year’s peak, this is more a reflection of the general sell-off of Aim-listed shares than the business itself.”