3rd Mar 2020 11:15
(Alliance News) - Healthcare software firm Craneware PLC expressed a positive outlook on Tuesday despite reporting no revenue growth.
For the six months to December Craneware's revenue was flat at USD35.9 million, but pretax profit did increase 3% to USD9.6 million due to lower cost of sales.
Craneware has lifted the interim dividend by 5% to 11.5 pence per share.
Despite the lack of revenue growth, Edinburgh-headquartered Craneware said new sales rose by over 30% year-on-year, most of which was expansion sales to existing customers.
The sales pipeline for the rest of its financial year ending June is "strong", the company continued, with total visible revenue for the year of USD72.2 million. For the three years to June 2022, visible revenue is USD200.8 million.
Chief Executive Keith Neilson said: "We are pleased to report on a positive sales performance in the first half of the financial year, with new sales over 30% ahead of the first half in the prior year, reflecting the considerable amount of activity that has taken place across the business since the summer. Whilst this increase will take time to flow through into our reported financials, we are confident momentum is now back in the business and the size of the opportunity ahead of us remains intact.
"The positive sales performance in the first half has continued to date, and our pipeline continues to grow, underpinned by the ongoing transition of the US healthcare market to value-based care.
"The board's expectations for the full year remain unchanged and we look forward to a return to increased rates of growth in future years. We are focused on execution and with strong operating margins, healthy cash balances and a growing sales pipeline, we continue to be excited by the opportunity ahead," Neilson continued.
Shares were 1.8% lower in London on Tuesday morning at a price of 1,905.00 pence each.
By George Collard; [email protected]
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