16th Sep 2014 10:25
LONDON (Alliance News) - Craneware PLC Tuesday upped its total dividend for the year to the end of June, as the company saw profit rise, driven by "growing customer confidence" in the US healthcare market.
The software company proposed a total dividend of 12.5 pence per share, up from 11.5 pence in the previous year.
Craneware posted a pretax profit of USD11.3 million, up from USD10.6 million, as revenue rose to USD42.6 million from USD41.5 million.
The company said that the market for its product had developed as it had expected, with sales coming from both individual hospitals and larger hospital groups. The total value of contracts signed increased 84% to USD71.0 million, up from USD38.5 million in the previous year; the company said that a "vast majority" of revenue from these sales would benefit future years.
Revenue growth was driven by the return of sales to large hospital networks which had been missing from results in the previous two years, as well as seven and nine year contracts. Professional services revenues were hit by the redeployment of the company's healthcare consultants, although the company expects this hit to be short term.
Craneware said the market environment for its business remains positive, as its product set addresses many problems facing US healthcare organisations.
Following the year-end Craneware acquired technology company Kestros Ltd for USD2.1 million, which it said would provide it with a technology platform in the Patient Access market.
"We have had a strong start to the current year, carrying on the momentum from the previous year and are confident we have the platform to deliver ongoing increased stakeholder value," said Chief Executive Keith Neilson in a statement.
Shares in Craneware were trading down 0.7% at 514.00 pence per share Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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