Edinburgh's Craneware sees new business surge but forecasts flat turnover

Craneware, the Edinburgh-headquartered software firm working predominantly in the US market, has revealed flat revenues for the first half despite recording a jump in new business.

Craneware CEO Keith Neilson pointed to a renewed momentum. Picture: Contributed

In a trading update, the company, which is quoted on London’s junior Alternative Investment Market, reported new sales were up by 30 per cent in the six months to 31 December, driven by a strong performance from its core products.

However, the hospital billing software provider expects to report first-half revenues “similar to the previous year”, at around $35.8 million (£27.3m).

The group, which currently serves around one third of US hospitals, said this is in line with management expectations as it works through a backlog of delayed contracts from earlier in the year, caused by “sales indigestion” from the roll out of its latest Trisus software.

Shares lost more than 9 per cent in early trading.

Craneware is forecasting 10 per cent growth in adjusted underlying earnings, which stood at $11.6m a year earlier.

The tech firm indicated it would continue to pursue potential acquisitions opportunities.

Chief executive Keith Neilson said: “This trading performance and progress with the Trisus platform demonstrate the renewed momentum we are experiencing in the business.

“The positive sales performance in the first half, combined with our extensive customer base, innovative product offering, high recurring revenues and financial strength, mean the board expects to meet market expectations for the year and is confident in our ability to deliver long-term, sustainable growth.”

Craneware is scheduled to announce results for the six months ended 31 December on 3 March.