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01 Mar 2021 | 11:15

Revenue and earnings rise in first half at Craneware

(Sharecast News) - US-focussed healthcare software company Craneware reported a 6% improvement in its revenue for the first half on Monday, to $38m (£27.21m). The AIM-traded firm said adjusted EBITDA for the six months ended 31 December rose 5% year-on-year to $13.3m, while its profit before tax rose 3% to $9.9m.

Adjusted basic earnings per share were 5% higher at 32.5 US cents, while the company's cash position improved to $50.7m, from $45.0m a year earlier.

The board declared an interim dividend of 12p per share, a 4% rise over the half-year distribution in the prior year.

It noted further investment in research and development, and innovation, of $11.6m, of which $4.5m was capitalised to take advantage of a growing market opportunity.

On the operational front, Craneware noted continued progress despite the ongoing Covid-19 backdrop, with new sales more than 30% ahead of a "strong" comparable period in the prior year.

The company reported solid growth in metrics for 'Trisus', with more than 500 hospitals now using the platform, and Trisus solutions accounting for around 16% of new sales, up from 10% year-on-year.

There were more than 90 million anonymised aggregated patient encounters included within data on the platform, which was an increase of 30% in the last three months.

Its remaining core solutions, Chargemaster Toolkit and Pharmacy ChargeLink, were on track to be migrated to the Trisus platform within the next 12 months.

Craneware reported strong customer retention rates above 90%, with the dollar value of renewals returning to about 100%.

Looking ahead, the firm said it had a "strong" sales pipeline for the current financial year and beyond.

At the end of December, total visible revenues were $206.4m for the three-year period to June 2023.

The board said it was cognisant of the challenges presented by the current macroeconomic environment, but remained confident in the continued positive performance of the business.

Its expectations for the full year ending 30 June remained unchanged.

"The positive performance in the first half of the year provides a strong foundation for future growth," said chief executive officer Keith Neilson.

"We are making considerable progress on our Trisus expansion strategy and seeing accelerated adoption of this cloud-platform by our existing and new customers.

"Managing the impact of the Covid-19 pandemic has clearly been the top priority for all healthcare-related organisations over the past year and will continue to be the case for many months to come, providing front-line care while adjusting to new methods of healthcare delivery and ensuring their financial operations can respond."

Neilson said the company's customers were continuing to take steps to create further resilience across their financial operations, with the company "committed" to providing them with the tools and insight to do so.

"The first half's positive sales performance has continued with ongoing pipeline growth, a growing Trisus customer base, expanding offering and clear market need.

"While cognisant of the challenges presented by the macro environment, we are confident in the continued positive performance of the business and accelerated growth rates moving forward."

At 1036 GMT, shares in Craneware were down 2.44% at 2,039p.
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