(Alliance News) - Shares in healthcare-focused software provider Craneware PLC jumped Tuesday after it hiked its dividend despite revenue growth being slower than originally expected.
Shares in Craneware were 6.3% higher at 1,940.00 pence in London on Tuesday.
For the year ended June, pretax profit fell 3.2% to USD18.3 million from USD18.9 million the year prior. This was despite revenue rising 6.4% to USD71.4 million from USD67.1 million the year before.
Profit performance was hurt by USD1.2 million in aborted acquisition costs related to a "significant" unnamed deal which was not pursued by the firm, as well as USD2.9 million in intangible asset amortisation.
"The ongoing transition to value-based care is a powerful underlying driver for our software, as healthcare providers seek the means not only to survive but thrive in this new era," Craneware Chief Executive Officer Keith Nelson said. "We are committed to providing our customers with the tools they require to continue to deliver outstanding care to their communities and are passionate about the central role we will play in this substantial evolution of the US healthcare market."
"While growth in the year was lower than originally anticipated, renewal levels remained strong and our Trisus related sales and revenues continued to increase, providing us with a strong platform for the future," Nelson added. "We have entered the new financial year with an uptick in sales momentum."
Craneware proposed a 15.0 pence per share final dividend, up 7.1% from 14.0p the year prior. For the full year, the dividend rose 8.3% to 26.0p from 24.0p the year before.
"We are focused on the delivery of our growing opportunity and have the correct strategy to succeed," Nelson continued. "With growing levels of contracted future revenue, strong operating margins, healthy cash balances and a growing sales pipeline, we look to the coming years with confidence and high levels of excitement for the opportunity ahead."
Craneware (CRW)