Craneware revenue growth falls short, profits dip

Craneware on Tuesday reported a smaller-than-expected increase in annual revenues alongside a drop in profits as acquisition costs weighed heavily.

The healthcare software solutions provider reported revenue of $71.4m for the six-month period ending 30 June, for an increase of 6.0% when compared to the same period in the year before, though its profits before tax fell by 3.0% to $18.3m.

Its bottom line however was hit by $1.2m in aborted acquisition costs related to an abandoned acquisition deal and a $2.9m charge for the amortisation of an intangible asset.

The AIM traded company proposed a 15.0 pence per share final dividend, up 7.1% from 14.0p the year prior, meaning that its full-year dividend rose 8.3% to 26.0p.

Keith Neilson, chief executive of Craneware, said: "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. We have entered the new financial year with an uptick in sales momentum."

The company added that it was confident in its future performance due to growing levels of contracted future revenue, strong operating margins, healthy cash balances and a growing sales pipeline.

Craneware shares were up 6.30% at 1,940.00p at 1313 BST.