Craneware reports solid revenue growth
Business software specialist reported double-digit revenue growth for the six months ended 31 December on Monday.
The AIM-traded company said it achieved a 10% increase in revenue to exceed $100m, compared to $91.2m in the same a year earlier.
Adjusted EBITDA rose to about $30.3m from $27.5m in the first half.
The firm said annual recurring revenue (ARR) grew 3% to $177m, supported by continued sales momentum and a net revenue retention rate exceeding 100%.
Notable sales in the period included further success with the Trisus Platform Partner offerings and the first major customer contract secured via the Microsoft Azure Marketplace.
High levels of operating cash conversion allowed Craneware to invest in its product portfolio, reduce debt, and cut interest costs.
Total bank debt decreased to $31.6m from $59.2m, while cash reserves grew to $72.2m from $63.9m a year earlier.
Craneware also announced the appointment of Susan Nelson as a non-executive director, effective 16 January.
Nelson, currently executive vice-president and chief financial officer at MedStar Health, would bring experience in US healthcare finance and strategic operations to the board.
The company said it expected a stable demand environment following the US elections, as hospitals focussed on strategic growth.
It said it remained confident in its ability to execute its growth strategy while absorbing cost pressures such as UK National Insurance increases.
The firm said it was trading in line with market expectations for the full year ending 30 June, and saw its accelerated growth as a positive indicator for future performance.
"We are pleased to have delivered another healthy first half performance, demonstrating our continued progression to sustainable double-digit growth, as customers increase their use of our Trisus platform and platform partner offerings," said chief executive officer Keith Neilson.
"The pace of innovation taking place across our organisation in collaboration with Microsoft and Oracle is considerable, and we look forward to stepped increases in our joint marketing initiatives in the coming months.
"With our prior sales successes now converting into ARR growth, continued strong cash generation and an increasingly strategic position as a powerful source of independent data and insights at the heart of the US healthcare market, we look to the future with confidence."
Craneware said it would announce its results for the six months ended 31 December on 11 March.
At 0922 GMT, shares in Craneware were up 6.08% at 2,180p.
Reporting by Josh White for Sharecast.com.
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