Medical software provider Craneware said it is line to reap the rewards of the company’s biggest-ever acquisition when it reports its year-end results in September.
In a trading update the Edinburgh-headquartered company said revenues for the year to the end of June more than doubled to approximately $165 million (£137m) on the same period a year earlier following an 11-month contribution from Sentry Data Systems. Craneware acquired Florida-based Sentry in a £283m deal that closed in July 2021.
Adjusted earnings are expected to rise by 85 per cent on the previous year to more than $50m (£41.6m). Craneware added that the integration of the two businesses is now complete, with targeted profit margins of 30% achieved ahead of schedule.
The company provides billing platforms and related software to hospitals and other healthcare providers in the US. Chief executive Keith Neilson said professional services revenues from this sector have been impacted by Covid, though the situation is expected to normalise in the “near term”.
READ MORE: Craneware to ‘backfill’ with new Scottish hires to combat higher wage costs
“As the US healthcare market and our customers continue to work tirelessly to overcome the challenges caused by the pandemic, the importance of useable financial and operational data becomes ever clearer,” Mr Neilson said.
“Now, more than ever, hospitals and pharmacies need the insight and capabilities our offerings can give them, to ensure their financial strength and ability to continue to deliver outstanding care to their communities.”
Nearly half of all US hospitals use at least one Craneware or Sentry product. Sentry has a particularly strong presence in the pharmaceutical market.
In March, Craneware posted a 111% increase in revenues for the first half of the financial year, with adjusted profits up by 68%.
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The group had cash reserves of $47.2m at the end of June, up from $41.7m at the start of the year. Net debt fell from $72.9m to $63.1m.
Mr Neilson, who set up the business in 1999 with co-founder Gordon Craig, added: “”It is now just over a year since we acquired Sentry and we are delighted with how the teams have come together behind our shared vision to transform the business of US healthcare.”
Craneware will release its results for the full year on September 19. Shares in the company, which are listed in London, closed 3% lower yesterday down 55p at 1,740p.
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