Craneware trading in line after first-half growth

4th Mar 2024 11:44

(Sharecast News) - US healthcare software and service specialist Craneware reported an 8% increase in first-half revenue in its interim results on Monday, to $91.2m.

The AIM-traded firm said adjusted EBITDA for the six months ended 31 December was ahead 8% year-on-year to $27.5m, while adjusted profit before tax saw an 8% increase to $17m.

Profit before tax was ahead 13% at $5.9m, while adjusted basic earnings per share experienced a 4% increase to 42.8 cents per share.

Annual recurring revenue (ARR) reached $171.4m, making for a 3% increase from $166.4m in the first six months of the 2023 financial year.

Craneware recorded robust cash conversion, with EBITDA conversion over the last 12 months reaching 91%, compared to 77% a year earlier.

The company reported cash reserves of $63.9m and total bank debt of $59.2m at period end.

On the operational front, Craneware noted a positive response to its recently-launched optimisation suites, which it said offered strategic solutions for healthcare market challenges.

Sales to both existing and new customers significantly increased, reflecting an improving market backdrop.

Customer retention remained strong at over 90%, while the partner programme, facilitated by the Trisus platform, contributed to revenue growth.

Craneware said it was continuing to invest in research and development and innovation to capitalise on market opportunities.

The Trisus platform now boasted nearly 200 million unique patient encounters, enhancing competitive strength and opening avenues for product enhancement and new development.

Looking ahead, Craneware anticipated a strengthening market backdrop with US healthcare and hospital customers refocusing on the future.

The company said it was confident in delivering results for the year in line with current consensus, and saw clear potential for growth acceleration in the near-term.

"Our growth in the first half of the year is tangible evidence of the return of healthcare providers' focus to their strategic priorities and their increasing investment in technology to provide the insights to achieve them," said chief executive officer Keith Neilson.

"Through our investments in the Trisus platform, Craneware is well positioned to support our customers in this transformation of the business of US healthcare, providing us with a sizable opportunity and growth lasting for the long term."

Neilson said the company entered the second half of the year with good sales momentum and focus.

"We remain confident in the delivery of results for the year in line with current consensus, further growth acceleration over the near term, and our ability to create further long-term value for all stakeholders."

At 1115 GMT, shares in Craneware were down 0.24% at 2,105p.

Reporting by Josh White for Sharecast.com.