Craneware spies ‘increased opportunity’ from Microsoft partnership

Software and IT company Craneware said it sees “increased opportunity ahead” as it posted solid full year results on Tuesday, ahead of expectations.

The Scottish company, which provides software to American healthcare organisations, beat forecasts as revenue rose to $189.3m (£144.3m) in the year to 30 June 2024, up nine per cent from $174m (£133m) in 2023.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped six per cent to $58.3m (£44.5m), compared to $54.9 (£41.2m).

Craneware said its cash pile dropped to $34.6m (£26.4m), down from $78.5m (£59.9m) last year.

But Keith Neilson, chief of Craneware, said: “We see increased opportunity ahead.” He believes the company’s partnership with Microsoft, struck in July, will allow it to “accelerate innovation and explore new AI-based applications” to expand the size of its market.

He added: “We approach this opportunity from a position of strength and resilience, with a strong balance sheet, high levels of recurring revenue and consistently high customer retention rates. This gives us the confidence and the ability to continue investing for growth, to secure our long-term market position.

“We have commenced FY25 with a good level of trading, and remain confident in achieving another positive year ahead, growth acceleration over the near term, and our ability to create further long-term value for all stakeholders.”

In March the company posted interim results in which revenue and pre-tax profit rose by eight and nine per cent respectively.

The AIM-listed stock has climbed around 54 per cent over the past year.