CRANEWARE, the Scottish software company targeting the US healthcare sector, has unveiled a modest rise in first-half profits to $9.6 million and hailed a lift in new sales of almost a third.
The Edinburgh-based healthcare revenue management specialist flagged financial highlights including stable revenue of $35.9m and an adjusted Ebitda of 10 per cent to $12.7m, as well as the profit before tax increase of 3% to $9.6m.
It reported strong growth in new sales with expansion sales to existing customers including increasing product cross-sell and sales to new hospitals joining existing healthcare network customers.
READ MORE: Edinburgh health tech firm Craneware's 30% sales hike signals return to growth
Craneware said its new cloud based Trisus solutions accounted for about 10% of new sales against 6% in the previous first-half and also an increase in total value of renewals and high number of customer renewals, although renewal statistics dipped to 73% owing to the loss of one customer.
It increased investment in R&D to $10.3m, against $9.1m, “to take advantage of the growing market opportunity”.
In its outlook it pointed to a strong sales pipeline for the current financial year and at the end of last month total visible revenues of $72.2m for the current financial year and $200.8m for the three-year period to June 2022, against $190m for the same three year period.
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It said there is “a return to increased rates of growth” ahead.
Keith Neilson, Craneware chief executive, said: “We are pleased to report on a positive sales performance in the first half of the financial year, with new sales over 30% ahead of the first half in the prior year, reflecting the considerable amount of activity that has taken place across the business since the summer.
“Whilst this increase will take time to flow through into our reported financials, we are confident that momentum is now back in the business and the size of the opportunity ahead of us remains intact.
“Importantly, the level of Trisus sales grew in the half, with sales of all four of our current Trisus solutions and the pipeline for these products increasing.
“We are focused on execution and with strong operating margins, healthy cash balances and a growing sales pipeline, we continue to be excited by the opportunity ahead.”
Craneware shares were 1,870p, a dip of 3.6%, or 70p.
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