Craneware

US-focused healthcare financial software specialist Craneware says interim results should show ‘strong growth’, as it launches a new product.

Based in Livingston, Scotland and with offices in Florida, Arizona and Kansas, AIM-quoted Craneware says it expects profits before share-based payments, depreciation and amortisation for the first half to December to show an increase of more than 30% over the previous year’s first-half $2.54m (£1.56m). The company, which seeks to enhance the financial operation of US hospitals and boosted pre-tax profits 40% to $5.9m in the year to last June, on turnover up 21% to $23m, adds it has seen a 15% rise in the value of contracts signed in the first six months.

Towards the end of the first half year, Craneware launched Supplies ChargeLink, software to help hospitals ‘better manage and optimise reimbursement for chargeable items'. The product won its first customer in the shape of Washington County Regional Medical Center, East Georgia, USA.

Chief executive officer Keith Neilson points out increased fiscal and legislative pressures in the USA are making Craneware’s software increasingly relevant to healthcare companies there. First recommended by Growth Company Investor in 2008 at 152p, Craneware shares peaked at 370p and now trade at 354, down 9.5p this morning.

Partial profit taking looks appropriate. But it makes sense to hold on to a chunk for potential further growth.