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(Sharecast News) - Craneware reported a strong first-half performance for the six months ended 31 December on Tuesday, with revenue growth, higher profitability and continued debt reduction, as sustained demand across its core US healthcare markets supported trading in line with full-year expectations.
The AIM-traded healthcare software group said revenue rose 6% year-on-year to $106m, while adjusted EBITDA increased to about $33.4m from $30.3m a year earlier.
Annual recurring revenue grew by 4% to $184.3m, supported by ongoing sales momentum and net revenue retention remaining above 100%.
Craneware said high operating cash conversion during the period enabled continued investment in its product portfolio alongside balance sheet strengthening.
Total bank debt was reduced to $23.4m from $31.6m a year earlier, while total cash reserves stood at $71.2m after adjusting for cash in transit.
The firm said it maintained momentum despite global economic uncertainty, citing ongoing investment in innovation, operational efficiency and disciplined cost control.
It noted that the introduction of the Health Resources and Services Administration's Rebate Model Pilot for the US 340B programme was stayed by a US District Court, with the subsequent temporary halt providing short-term clarity for healthcare providers.
While the pause weighed on reported revenue growth linked to signed contracts in the area, Craneware said it had rapidly launched a viable rebate solution to protect customers.
Looking ahead, Craneware said it continued to trade in line with market expectations for the year ending 30 June and remained on track to deliver double-digit growth in the near term.
The group pointed to a robust sales pipeline, favourable market dynamics and its strong balance sheet as foundations for sustainable expansion in the US healthcare market.
"We are pleased to have delivered another healthy first half performance, which combined with the strength of our recurring revenue model provides confidence in near-term, sustainable double-digit growth," said chief executive officer Keith Neilson.
He added that continued innovation, including collaborations with Microsoft and Oracle, left the group "ideally positioned to support our customers in the evolving landscape of US healthcare".
Craneware said it would publish its interim results for the six months ended 31 December on 2 March.
At 1345 GMT, shares in Craneware were down 6.46% at 1,763.25p.
Reporting by Josh White for Sharecast.com.