Tightening budgets, soaring costs and changing regulations have weighed on hospitals and clinics in the US. Craneware (CRW) is helping them tackle those challenges with 'value cycle' software, which mines organisational data to determine which treatments are both cost-effective and deliver quality patient outcomes. Brisk trading drove adjusted cash profit up 12 per cent to $7.1m (£5m) in the six months to 31 December.
Strong demand for money-saving solutions meant the value of new contracts swelled 15 per cent. Moreover, renewal rates were north of 100 per cent as customers snapped up additional products. The upshot was a record revenue pipeline that will be recognised over the coming years.
Craneware's gains continued after the period ended. Management inked a $7.5m contract with an operator of more than 50 hospitals. It also struck a reselling agreement with US peer VestaCare that has broadened its range of patient engagement and payment products. And the group is hard at work on Trisus, a platform that integrates revenue integrity, cost management and data analytics solutions.
Robust cash generation meant Craneware's cash pile ballooned by nearly a quarter to $45m, creating rich scope for acquisitions and investments.
Broker N+1 Singer expects adjusted pre-tax profit of $14.1m in the year to June, giving EPS of 39.3¢ (from $13.3m and 37.7¢ in 2015).
| CRANEWARE (CRW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 755p | MARKET VALUE: | £202m | |
| TOUCH: | 735-775p | 12-MONTH HIGH: | 830p | LOW: 530p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 184¢* | NET CASH: | $45m | |
| Half-year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 21.6 | 5.3 | 14.9 | 6.3 |
| 2015 | 23.1 | 6.1 | 17.2 | 7.5 |
| % change | +7 | +17 | +15 | +19 |
Ex-div: 17 Mar Payment: 1 Apr *Includes intangible assets of $16.5m, or 62¢ a share £1=$1.42 | ||||
