LONDON (ShareCast) - (Sharecast News) - Healthcare software and automation company Craneware said in a trading update on Monday that group revenues had grown 110% in its first half to around $80m, with an adjusted EBITDA increase of 75% to more than $23m.
The AIM-traded firm said its results for the six months ended 31 December would include a five-month contribution from its Sentry acquisition, and would be in line with management's expectations.

Annual recurring revenue had grown ahead of management expectations to a new milestone of $165m, up from $64.5m at the end of June, which the board said demonstrated the "resilience" of the business.

A contributor to that recurring revenue had been modest growth in organic licence revenue, although the the recent wave of the Omicron variant of Covid-19 and reduced staffing levels had added to the pressure on hospitals, and was recently more pronounced, leading to a "slight elongation" of the sales cycle and delays in professional services.

That means there was a reduced amount of professional services revenues being recognised in the period, which tempered the company's overall organic growth during the period, although Craneware said it expected that to correct as the current pandemic-driven challenges eased.

The combined group adjusted EBITDA margin of 28.75% was tracking to its target of returning to a 30% margin ahead of schedule, with initial synergies mitigating near term industry salary inflationary pressures.

Craneware said the nature of its multi-year software-as-a-service (SaaS) contracts were expected to provide further protection from inflationary pressures in the second half, as annual billings were made.

The company said the integration of Sentry Data Systems was progressing ahead of plan, with the first cross sales of each company's products into the others' customer base now made.

It said the integration of the management teams and associated operational departments was nearing completion, and the sales and technology teams were continuing to track on target to be fully integrated by the end of the current financial year.

Looking ahead, Craneware said that while it was cognisant of the challenges its customers were facing, its annual recurring revenue, strong balance sheet and expanded market opportunity meant it remained on-course to deliver results for the current year in line with management expectations.

"Our customers continue to be at the front-line in the evolving pandemic," said chief executive officer Keith Neilson.

"With a peak of Omicron cases thought to be appearing in the US, the pressure on them through this human tragedy has only increased, with resource and staffing constraints creating new daily challenges.

"Craneware continues to be in awe of the bravery and dedication we see from all our customers as their absolute focus on selflessly serving their communities."

Neilson said that as the "new" Craneware Group, its aim was to transform the business of healthcare in the United States.

"The global pandemic has highlighted the importance of usable financial and operational data and it is expected this realisation will drive future investment by hospitals.

"Through our increased scale and data sets, we are even better placed to provide innovative new ways to measurably impact operational and financial performance and are increasingly confident and energised by the opportunity ahead."

Craneware said it would announce results for the six months ended 31 December on 14 March.

At 1056 GMT, shares in Craneware were down 3.15% at 2,150p.

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