Craneware on a high with record fullyear earnings

● Underlying pretax profits rise 13% to some £13.4m ● Secures sales for first product on cloud platform

Software developer Craneware has racked up 18 consecutive years of growth with record annual sales and profits.

The Edinburgh-based firm, which specialises in software for the US healthcare market and is also marking ten years on London’s Alternative Investment Market (Aim), said underlying pre-tax profits rose 13 per cent to $18 million (£13.4m) for the year to the end of June, on revenues 16 per cent higher at $57.8m.

Chief executive Keith Neilson, who co-founded Craneware with Gordon Craig in 1999, said the company had secured sales for the first product launched on its new cloudbased platform Trisus, which offers healthcare providers a range of services to identify and take action on risks related to revenue, cost and compliance.

He told The Scotsman: “The platform allows us to grow by migrating over all of our other products, which will be enhanced with extra functionality, but also with brand new products. The first big example of that is our cost analytics platform that we’ve also launched this year.

“It’s quite a diverse portfolio but very consistent in what it’s trying to do – making hospitals financially healthy so they can focus on what’s important, which is giving care.”

US president Donald Trump has so far failed to make good on his promise to “repeal and replace” his predecessor Barack Obama’s signature health plan – dubbed Obamacare – but Neilson said that said such short-term political wrangling had little impact on Craneware.

He added: “The unceasing evolution of the US healthcare market towards value-based care presents us with an ongoing, growing market opportunity and the investments we have made mean we now have the potential to deliver against this expanding opportunity.

“With our sales pipeline increasing each year, this increased scalability and opportunity, combined with our high levels of revenue visibility, strong cash position and extensive customer base provide us with confidence in Craneware’s ongoing success.”

A final dividend of 11.3p a share was proposed, to be paid on 7 December, taking the fullyear payout to 20p – up from 16.5p last time.

With a presence in every US state, Craneware employs about 280 people, of whom 135 are based at its Tanfield headquarters in Edinburgh. Nielson added: “There is an attraction to expanding geographically at a later stage, more likely on the cost analytics side.” Deloitte and the University of Strathclyde’s Fraser of Allander Institute have agreed a partnership to provide businesses with enhanced insights into the Scottish economy. The business advisory firm – whose tax partner John Macintosh is pictured with the Institute’s Graeme Roy – will support the research institute’s closely-watched quarterly economic commentary report, providing additional analysis and helping to communicate its findings to Scottish companies.