Craneware’s (CRW) gross profits fell flat in FY2020 at $67m (£52m), as new sales contracted by almost a tenth. The software company was hit by the coronavirus fallout in the US healthcare industry – but is still supported by $200m of visible revenue for the next three years.
Existing customers accounted for 90 per cent of sales in the year, as Craneware built on its ‘land and expand’ strategy. Around 14 per cent of new revenues were generated by its Trisus cloud products, which management noted are on track for a full launch in 2021. Growth projections for this corner of the IT market remain elevated and Craneware has seen some signs that the sales cycle is starting to normalise, as momentum picked up in the first quarter of the current period.
Broker Peel Hunt forecasts adjusted pre-tax profits of $17.9m and EPS of 63 cents in 2021, compared with $19.3m and 64.4¢ in 2020.
| CRANEWARE (CRW) | ||||
| ORD PRICE: | 1,615p | MARKET VALUE: | £ 433m | |
| TOUCH: | 1,580-1,650p | 12-MONTH HIGH: | 2,650p | LOW: 1,300p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 33 | |
| NET ASSET VALUE: | 255¢ | NET CASH: | $45.8m | |
| Year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2016 | 49.8 | 13.9 | 39.4 | 16.5 |
| 2017 | 57.8 | 16.9 | 50.2 | 20.0 |
| 2018 | 67.1 | 18.9 | 59.0 | 24.0 |
| 2019 | 71.4 | 18.3 | 56.1 | 26.0 |
| 2020 | 71.5 | 19.3 | 62.8 | 26.5 |
| % change | +0 | +5 | +12 | +2 |
| Ex-div: | 19 Nov | |||
| Payment: | 15 Dec | |||
| *Includes intangible assets of $36.8m, or 137¢ a share £1=$1.28 | ||||
