Craneware reports on year of growth

6th Sep 2016 15:16

(ShareCast News) - Provider of 'value cycle' solutions to the US healthcare market, Craneware, announced its results for the year ended 30 June on Tuesday, with the total contract value in the year reaching record levels of $82.3m, up from $72.9m a year earlier.The AIM-traded firm said new sales increased by 63% to $58.6m, with a renewal rate remaining above 100% by dollar value.Its revenue increased 11% to $49.8m, with adjusted EBITDA improving 10% to $15.9m and profit before tax growing by 10% to $13.9m.Basic adjusted earnings per share increased 13% to $0.429, and adjusted diluted earnings per share grew to $0.423 from $0.375.Craneware's continued operating cash conversion remained above 100% of adjusted EBITDA.It reported cash at year-end of $48.8m, compared with $41.8m in the prior year, and after payment of a $6m dividend to shareholders.The board proposed a final dividend of 9p, or 12 US cents, per share giving a total dividend for the year of 16.5p, or 22 cents, per share, up from 14p last year, though due to exchange rate fluctuations that was also 22 cents."Craneware is in a stronger position than ever and we are passionate about the opportunity ahead," said CEO Keith Neilson."The double digit growth in our reported revenue and adjusted EBITDA are only beginning to reflect the record levels of sales which began three years ago."Importantly, the investment we are making in our product suite mean our market opportunity is now several times larger than it was when we joined AIM in 2007," he explained.Neilson said the market was continuing to evolve as anticipated, and US healthcare providers are seeking solutions to address the challenges the new value based reimbursement environment brings to them."We believe the investment we are making to expand the products in our Value Cycle suite addresses these challenges and we are now recognised beyond our original niche within the revenue cycle as a more strategic provider within a hospital's financial operations and their value cycle.""We are confident that the ongoing investment we are making, combined with our continuing sales successes, mean we are well positioned to deliver continued future growth as well as increasing stakeholder value," Neilson commented.