Craneware (CRW) shares fell on the release of these ‘in-line’ half-year numbers and it’s quite puzzling why. The healthcare billing software group posted a 15 per cent rise in half-year revenues to $35.9m (£27.1m), while adjusted cash profits rose by a fifth to $11.6m. Perhaps it was the group’s cash position – now $38.7m, compared with the last half-year’s $52.2m – which caught investors off guard. This was the result of shareholder returns and research and development (R&D) investments in the period, although an extra $10m in collected receivables means analysts at Investec see “no lasting issue” with future cash outflows.
It would seem the shares’ premium rating makes them vulnerable to even the slightest disappointment. But a “supportive” US market – one that is moving towards value-based care – should play to Craneware’s advantage, while roughly 50 per cent of customers who attended its recent healthcare summit are said to want to transfer to the new Trisus platform within the next 12 months. The first three Trisus products are already available to customers, with a fourth due for release in the second half.
Investec expects pre-tax profits of $23.2m for the year ending June 2019, giving EPS of 67.6¢, compared with $19.9m and 59.1¢ in FY2018.
| CRANEWARE (CRW) | ||||
| ORD PRICE: | 2,475p | MARKET VALUE: | £ 661m | |
| TOUCH: | 2,450-2,500p | 12-MONTH HIGH: | 3,635p | LOW: 1,725p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 52 | |
| NET ASSET VALUE: | 211¢* | NET CASH: | $38.7m | |
| Half-year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2017 | 31.1 | 8.7 | 24.8 | 10.0 |
| 2018 | 35.9 | 9.3 | 28.9 | 11.0 |
| % change | +15 | +7 | +17 | +10 |
| Ex-div: | 14 Mar | |||
| Payment: | 11 Apr | |||
| *Includes intangible assets of $26.4m, or 99¢ a share £1 = $1.32 | ||||
