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(Alliance News) - Craneware PLC on Wednesday said that its sales had benefitted from an improving market backdrop, positioning it for solid growth throughout 2024.
Craneware is an Edinburgh, Scotland-based provider of software solutions helping to improve financial performance in the US healthcare market.
The group said it had benefitted from an "improving market backdrop" in the US healthcare industry, as revenue grew to USD91 million for the six months up to December 31, up 8% from USD84.7 million a year before.
Adjusted earnings before interest, tax, depreciation and amortisation for the half year also rose 8% to GBP27.5 million, in line with the company's expectations.
Annual recurring revenue increased to USD171.4 million from USD166.4 million, as the company said "much of the sales success" over the period has yet to convert into revenue.
The group maintains cash reserves of USD63.9 million at December 31, down from USD90.8 million at the end of 2022, but has reduced its total bank debt to USD59.2 million from USD107.9 million over the same period.
The company's share buyback programme, due to expire on January 17, has also been extended to April 17.
Craneware believes it enters the next six months in a "strong position", saying that increasing market confidence will produce returns on its investment in the Trisus software solutions portfolio alongside other partnerships.
Craneware added that annual recurring revenue from contracts secured prior to the year's end have provided a "solid foundation" for growth, as the company targets "double digit growth rates in the near term".
Chief Executive Officer Keith Neilson said: "With US healthcare and our hospital customers re-focusing on the future, the drive to better value in healthcare has returned to the forefront of their strategic priorities and we are pleased to see the returning confidence having a positive impact on our financial results.
"Our investments made in prior years in the move to the cloud and our Trisus platform, mean we are well positioned to be the strategic partner US hospitals and pharmacies need, now and in the future, and we look forward with confidence," he added.
The company will release its interim results for the period ended December 31 on March 4.
Shares in Craneware were up 1.7% at 1,835.00 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
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