CRANEWARE, the billing software specialist focused on the US healthcare market, has underlined the strength of its long-term prospects across the Atlantic as it signalled expectations of delivering revenue growth at the upper end of forecasts.
The Edinburgh-based company highlighted the potential of its new alliance with Microsoft, its independence in the US market, balance sheet strength and “high levels of revenue visibility” as evidence of its growth potential for the years to come.
It came as the business declared revenue for the year ended June 30 was expected to have exceeded $188 million, at the upper end of market expectations and 8% higher than the prior year. Craneware also expects to deliver underlying earnings of at least $58m, up 6% and also at the top end of expectations.
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Chief executive Keith Neilson said: “The drive for better value in healthcare continues to dominate strategic priorities within the US healthcare market. Our positive financial results reflect the demonstrable impact the Craneware Group can make, in helping our customers meet these priorities.
“The exciting growth and expansion opportunities that our new alliance with Microsoft brings to the group, combined with our continued investment in the Trisus platform, the considerable data assets we maintain, and our independence within the US healthcare market mean we are uniquely placed to support all US hospitals.
“Supported by a strong balance sheet, high levels of revenue visibility and the partnerships and alliances we are developing, we are confident this year’s healthy performance is evidence of the expanded and long-term opportunities that are ahead of us.”
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Craneware noted that its high levels of cash generation have allowed it to invest in the future of the business while reducing its bank debt to $35.4m from $83m and return $12.8m to shareholders through dividends, up from $12.1m. It also said has completed around $3.3m of share purchases through a share buyback and purchase of shares by the employee benefit trust.
The group had cash reserves of $34.6m at June 30, compared with $78.5m last year.
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