Craneware, the AIM-listed specialist in value cycle solutions for the US healthcare market, has continued to perform strongly in the first half of the financial year as it executes on its growth strategy.
The company points to strong underlying sales growth and expects to report increases in both revenue and adjusted EBITDA in the range of 15% to 18% for the six-month period ended 31 December 2017, continuing the double-digit growth delivered in the prior year.
The Group maintains healthy cash reserves of over $50m (H117: $45m) and has a further funding facility available from the Bank of Scotland of up to $50m. The Group continues to investigate opportunities to deploy these reserves.
With the growth in contracts signed in the period, continued sales momentum and high levels of revenue visibility, the board is confident in meeting market expectations for the full year.
Major contract win
The company has confirmed a significant contract win, which it claims will deliver in excess of $16m of revenue over its initial five-year term as Craneware's Value Cycle solutions are utilised by over 75 new facilities across the network.
Commenting on the latest numbers, Keith Neilson, CEO of Craneware said: "These results, including a contract with one of the largest healthcare providers in the US, demonstrate the ongoing momentum we are experiencing in the business.
"The strength of our solutions and the value they deliver to all strata of customers, including large and complex health systems, allows us to support our customers as they address the challenges resulting from the continued evolution of the US Healthcare market.
"These factors combined with our financial strength and high levels of visible revenue for future years, gives management confidence in its ongoing ability to deliver increasing stakeholder value this year and in the future."
The company will announce results for the six months ended 31 December 2017 on 6 March 2018.