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Craneware PLC on Thursday said it remains well-placed to deliver growth, as overall revenue rose over the first half despite a drop in professional services income.
Craneware is an Edinburgh, Scotland-based company which develops, licences, and provides computer software for the US healthcare industry.
For the six months ended December 31, Craneware expects revenues to increase 5.6% to $84.7 million, from $80.2 million a year prior.
Earnings before interest, tax, depreciation and amortisation are also expected to rise, up 7.6% to $25.5 million from $23.7 million.
While software revenues remained ‘robust’ over the first half, the company noted that professional services revenues continue to be impacted by the effects of inflationary revenues, and remained at 8% of total revenues rather than returning to the ‘more typical’ level of 15%.
At the end of the first half, the company had cash reserves of $38.6 million, down 7.4% from $41.7 million last year, and total bank debt of $107.9 million, down 5.8% from $114.6 million.
Craneware said that it expected to deliver full year adjusted Ebitda in line with board expectations, but added that revenue was likely to take a hit from the reduction in professional services contribution.
‘Healthcare providers, both globally and in the US, continue to face many challenges, building back post pandemic and coping with inflationary pressures. Against this backdrop, we have delivered another robust performance, growing revenues and adjusted Ebitda, while maintaining a strong balance sheet and high levels of recurring revenue. Through the increased financial and operational insight our offerings provide our customers, we are well placed to support them through these difficult times and ultimately deliver on our growth ambitions,’ said Chief Executive Officer Keith Neilson.
Craneware shares were trading 11% lower at 1,705.00 pence each in London on Thursday morning.
The company will announce its interim results on March 6, 2023.
By Holly Beveridge; Alliance News reporter
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