Craneware shares rally following trade updates

Craneware shares rally following trade updates

Craneware plc (LON:CRW) saw its share price spike alongside record-breaking annual sales and revenues which were over ten percent higher than the previous year, in addition to securing a significant contract at the end of last year.

The AIM FTSE 100 listed firm expects its net sales to have grown around 100 percent while they project adjusted earnings EBITDA to have jumped 20 for the year through June.

The company provides financial solutions for hospitals and the healthcare sector. The new contract it has signed is with 12 hospitals in the Eastern US, for the introduction of Craneware’s ‘Pharmacy ChargeLink’ solution. The deal is expected to accrue $6 million in its first five years.

“These record results demonstrate the ongoing momentum we are seeing across all strata of hospitals including large and complex health systems as they embrace the realities of value-based economics within healthcare,” said Craneware CEO, Keith Neilson.

“We are playing an increasingly strategic role in assisting healthcare providers to deliver better healthcare through sustainable financial performance, whilst mitigating operational and compliance risks.”

“These factors combined with our financial strength and high levels of visible revenue for future years, gives management confidence in its continuing ability to deliver increasing stakeholder value year on year whilst investing in our future.”

Craneware shares rose 281p or 13 percent, to 2,413p, within the first hour of trading. Analysts from Peel Hunt have reiterated their ‘Buy’ stance on Craneware stock.