Hospital-focused software firm Craneware flags healthy outlook despite H1 profit retreat

Edinburgh-based software firm Craneware has said it expects to deliver full-year results in line with current market consensus after seeing a drop in interim profit amid challenges in its core US healthcare market.

The Aim-quoted company has posted group revenues for the period ending December 31 of $84.7 million (£70.5m), a 6 per cent year-on-year jump, while adjusted earnings before interest, taxes, depreciation, and amortisation increased 8 per cent to $25.5m,

Pre-tax profit came in at $5.2m, down from $6.2m 12 months previously, with adjusted basic earnings per share 41.0 cents, dropping from 43.5, “reflecting the impact of increased interest rates”, with an interim dividend flat at 12.5p. However, the business – which in November announced key senior appointments after in 2021 inking a major acquisition – also highlighted annual recurring revenue of $166.4m, which it said mirrored its “continued high levels of contracted revenue visibility”.

Chief executive Keith Neilson said: “We remain acutely conscious of the ongoing challenges faced by our customers and partners, in particular the impact of inflationary pressures and staffing shortages. The pressures they are experiencing strengthens our commitment to providing the tools to more accurately manage their operations and finances, as we seek to transform the business of US healthcare together.

'We are financially strong, with healthy cash reserves and a solid foundation of annual recurring revenue,' says boss Keith Neilson. Picture: contributed.

“We are financially strong, with healthy cash reserves and a solid foundation of annual recurring revenue. This, combined with our market leading solutions, breadth of customer base, the scale of data flowing through our platform, and the industry drive to achieve better value in healthcare, means we remain confident in our ability to deliver acceleration in our growth rates as the current pressures within the US healthcare market abate.”