Craneware expects double digit growth in FY revenues and earnings

6th Jul 2016 14:55

(ShareCast News) - Craneware shares rose on Wednesday after the US-focused healthcare company said it has achieved a third consecutive year of record sales.In a trading update for the year to 30 June 2016, the group said it returned to double digit growth in revenues and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).Craneware expects to report an increase of 11% in revenues and 10% in adjusted EBITDA for the year.A 60% increase in the value of new sales contracts signed at $50m, compared to the previous year's $35.9m, provided a boost to revenues.During the period, the company won a five-year contract for a 50 hospital group which will provide an excess of $7.5m revenue over the term. The firm also finished the year with a further multi-hospital group contract win, which is expected to deliver revenue more than $8m over the next five years."We believe our continued sales growth demonstrates the strategic importance of Craneware and its Value Cycle solutions to them as they meet these challenges," said Keith Neilon, chief executive of Craneware."The ongoing investment we are making to develop solutions that discover, convert and optimise value for healthcare providers, combined with our own historical sales successes, double digit revenue and adjusted EBITDA growth, give management confidence in its ability to deliver continued future growth as well as increasing stakeholder value."Shares rose 5.72% to 840.50p at 1509 BST.