Increasing visibility of forward sales has been the big story recently at Craneware, which provides software to US healthcare companies to improve their billing. This is reinforced by the latest figures which show that forward sales have jumped 48 per cent to $89.8m (£58.3m).
Craneware now expects a tonic in the shape of US healthcare reforms, which will open healthcare to 40m US citizens not covered by insurance and thus focus the minds of its customers on improving efficiency. The expected trend for US hospitals to move back into the ownership of doctors' practices should also benefit Craneware.
Meanwhile, contract renewal rates remain high; Craneware has brought new products onto the market, with the sixth, Value-based Pricing Analyzer, to be launched before the year-end; the sales team has been strengthened; and the network of alliances in the US market has been boosted with the addition of major players Premier and McKesson.
Broker KBC Peel Hunt expects full-year 2011 adjusted pre-tax profits of $9.5m and EPS of 25.4c.(from $7.5m and 19.7c in 2010).
CRANEWARE (CRW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 399p | MARKET VALUE: | £101m | |
| TOUCH: | 392-405p | 12-MONTH HIGH: | 426p | LOW: 239p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 56p | NET CASH: | $29.4m | |
| Year to 30 Jun | Turnover (US$m) | Pre-tax profit (US$m) | Earnings per share (US¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 15.1 | 1.84 | 6.0 | nil |
| 2008 | 18.7 | 4.19 | 13.7 | 3.10 |
| 2009 | 23.0 | 5.87 | 17.7 | 4.70 |
| 2010 | 28.4 | 7.26 | 21.8 | 8.00 |
| % change | +23 | +24 | +23 | +70 |
Ex-div: 10 Nov Payment: 08 Dec £1 = $1.5439 | ||||
