Aim 100 

The Aim 100 2019: 20 to 11

The Aim 100 2019: 20 to 11

20. Craneware

Craneware (CRW) is engaged in the development, licensing and ongoing support of software for the US healthcare industry. Uncle Sam accounts for a hefty portion of global healthcare spending, which will rise 5.4 per cent annually through 2017-22 to around $10 trillion, according to research from Deloitte.

Consistently strong cash generation has been a feature of group performance, with analysts expecting operating cash flows to rise by 50 per cent in the coming year. Annual earnings growth has run at 13.1 per cent over the past five years and return on equity is estimated at around 33 per cent over the next couple of years. There is also an unusual degree of predictability here – total visible revenue for the three-year period from 1 July 2018 to 30 June 2021 has grown 13 per cent to $196m ($157m of which is ‘Revenue under Contract’) against $174m for the same three-year period at 31 December 2017.

And yet the shares pulled back at the half-year mark, despite metrics in line with consensus forecasts and adjusted cash profits up by a fifth to $11.6m, presumably a reflection of the toppy valuation of 52 times forecast earnings. Hold. MR

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