Craneware sees positive sales momentum continue throughout H1

(Sharecast News) - Software outfit Craneware said on Tuesday that positive sales momentum experienced in the first half of the year had continued into the second half, with the group now expecting new sales to have increased approximately 40% to more than $42.0m.
Craneware stated the majority of revenue growth was a result of both new sales and existing contract renewal and would be recognised over future periods, providing it with long term visibility of revenue under contract.

Total revenue and adjusted underlying earnings for the year were expected to have growth in excess of 5% and 6%, respectively.

The AIM-listed group added that it was continuing to invest in the expansion of its cloud-based financial and operational performance platform, Trisus, with the capitalisation of R&D costs being maintained at "broadly the same levels" as in prior years.

Craneware stated that cash reserves remained "healthy", delivering a cash conversion rate of 90%, in line with the prior year. It also pointed to a "strong balance sheet", with cash of $235.6m at 30 June, including net funds of $187.4m received from an equity raise in anticipation of its recently completed acquisition of Sentry Data Systems.

"The financial challenges hospitals are currently facing, combined with the ongoing transition to value-based reimbursement, means the impact and insights that Craneware's Trisus platform delivers are increasingly relevant. The global pandemic has highlighted the importance of usable financial and operational data and it is expected this realisation will drive further investment by hospitals in the future," said Craneware.

"The group continues to see significant new opportunities entering the sales pipeline and the Board is confident in the group's ability to deliver double-digit organic growth in the future."

As of 1000 BST, Craneware shares were up 1.83% at 2,200.0p.