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Tuesday 20 September 2022

Acquisitions lift Craneware to new heights

LogoBuilding on its strong first half top line performance (see here), AIM-listed Scottish provider of software to the US healthcare market, The Craneware Group saw its revenue more than double during FY22. Turnover for the twelve months ended 30th June increased by 119% yoy to $165.5m on the back of the $400m purchases of Sentry Data Systems and Agilium Healthcare Intelligence completed in July last year. Adjusted EBITDA for the period expanded at a slower rate up by 91% to $51.8m. Profit before tax remained all but flat yoy at $13.1m after of the amortisation of acquired intangibles and bank interest payments resulting from the acquisitions

Absent of Sentry’s $94.7m contribution to full year turnover, however, Craneware experienced an organic decline in sales of 6% yoy during the last fiscal. A significant chunk of this shortfall resulted from continuing shortages of available staff at hospitals which impacted the company’s ability to deliver professional services.

Good progress was, nevertheless, made towards Craneware’s objective of becoming a fully cloud-based provider. Annual Recurring Revenue (ARR) jumped by 164% yoy to over $170m at the end of the period (30 June 2021: $64.5m) with four fifths of this being delivered from cloud-based solutions.

Underpinned by a robust balance sheet, high recurring revenues and strong customer retention, Craneware is both  upbeat on its growth prospects and anticipates accelerated levels of sales moving forward. Investors would seem to share some of this confidence. The company’s share price is up 7% at the time of writing this morning on the previous close.

Posted by: Duncan Aitchison at 09:10

Tags: results   software   healthcare   pharmacy  

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