Strong first half at Craneware

22/02/2010 Robert Tyerman

Craneware CEO Keith Neilson

US healthcare financial software specialist Craneware is feeling acquisitive after lifting interim pre-tax profits 28 per cent to £12.1 million.

Based in Livingston, West Lothian, the AIM-quoted company, whose software is designed to enhance the financial operations of US healthcare groups, increased turnover 25 per cent to $13.3 million (£8.6 million) in the six months to December. Craneware signed $25 million of contracts in the first half year, nearly 15 per cent ahead of a year earlier and increased future revenues under contract nearly 20 per cent to $71.8 million.

The company successfully launched its fifth product, Supplies ChargeLink, during the six months under review, and signed a re-seller agreement with McKesson Provider Technologies, a leading US supplier of software, hardware, automation, services and consulting to hospitals and general practitioners. Craneware, which ended December with nearly $27 million in the bank, is looking for new potential acquisitions ‘with the right opportunities and the right technology’, says chief executive officer Keith Neilson, who today reports a sizeable long-term contract win with North Shore-LIJ, the largest integrated health care system in New York State.

With growth driven by legislation aimed at trimming the expansion of US healthcare costs, the company upped first-half earnings 18 per cent to 9.2 cents (5.9p) a share. Craneware is nearly trebling the interim dividend to 4.7p a share and says it expects the full-year payout to be ‘in line with the stated progressive dividend policy’.

First highlighted by Growth Company Investor at 152p in 2008, Craneware shares now stand at 379p, valuing the company at £96 million. There could be yet more progress to come.