Craneware revenue growth accelerates in first half

17th Jan 2024 14:18

(Sharecast News) - Healthcare software specialist Craneware said in a trading update on Wednesday that it saw accelerated revenue growth in the six months ended 31 December, reflecting an improving market environment as US hospitals and healthcare institutions refocussed their strategic goals.

The AIM-traded firm said revenue jumped 8% to $91m, aligning with its expectations.

Adjusted EBITDA also rose 8%, reaching around $27.5m, up from $25.5m in the first half of the 2023 financial year.

Despite sales success yet to be converted into revenue, annual recurring revenue (ARR) increased about 3% to $171.4m, as the company maintained a net revenue retention rate of 100%.

Craneware said it had continued to employ its cash reserves to reduce debt and interest costs, resulting in lower interest rate charges.

That, coupled with growth in the period, led to a return to growth in adjusted earnings per share, with a 3% increase, compared to the 6% decrease seen in the same period a year earlier.

The company said it maintained a robust financial position, with total bank debt reduced to $59.2m from $107.9m year-on-year, while total cash reserves slid to $63.9m from $90.8m.

Its board said it had decided to extend the share buyback programme, originally set to expire on 17 January, for an additional three months to 17 April under the same terms as previously announced.

Looking ahead, Craneware said its investments in the Trisus platform, as well as the recent launch of optimisation suites and innovative partnerships, positioned it strongly for the second half of the year.

The firm said it anticipated benefiting from growing confidence in its market, and saw substantial new opportunities to support its customers in delivering better value in US healthcare.

"With US healthcare and our hospital customers re-focusing on the future, the drive to better value in healthcare has returned to the forefront of their strategic priorities and we are pleased to see the returning confidence having a positive impact on our financial results," said chief executive officer Keith Neilson.

"The importance of digitalisation, to meet these challenges, has never been clearer.

"With approximately 40% of all US hospitals as customers, our considerable data assets and expanded offering allow us to derive meaningful insights for them to improve their operational efficiency, ensure their financial strength and continue to deliver outstanding care to their communities."

Craneware said it would release its results for the six months ended 31 December on 4 March.

At 1352 GMT, shares in Craneware were up 1.77% at 1,837p.

Reporting by Josh White for Sharecast.com.