Craneware shares soar with ‘return to strong sales growth’

Provider of software solutions for the US healthcare sector, Craneware (AIM:CRW) saw its shares bounce on Tuesday, as it announced a “return to strong sales growth” ahead of its AGM.

The company said that trading during the first four months of the fiscal year were ahead of management expectations, and  “considerably ahead” of the same period the year before. The company’s statement added that:

“[We] expect revenues and adjusted EBITDA for the Interim period to 31 December 2020 to be ahead of the equivalent period in the prior year, building the foundation for a return to double-digit growth in the future. We look forward to providing further details within our Trading Update for the 6 months ended 31 December 2020.”

The company’s Value Cycle software offering continued to be well-received by leadership teams at US hospitals, with its Trisus Cloud-based software enabling hospitals to improve patient outcomes, while improving the operational and financial performance of hospitals. The Craneware statement added:

“With each hospital that joins the platform, Trisus becomes more powerful. Through the recent beta launches of the Trisus (cloud) versions of our core offerings, Chargemaster Toolkit and Pharmacy Chargelink, and our four live Trisus native cloud applications, we now have multiple means by which new and existing customers can join the Trisus Community, providing them with a gateway to the wider benefits the platform can provide.”

“We continue to see substantial new opportunities entering the sales pipeline and the Board is confident in the continued strong performance of the business.”

Following the update, Craneware shares rallied by almost 14%, up to 2,190p a share. This price is its highest since the first lockdown began, but around 25% shy of analysts’ 2,733.33p target price.

Analysts currently have a consensus ‘Buy’ stance on the stock; its p/e ratio of 35.30 is good value versus the tech and computing sector average of 72.15; and it has a 54.39% “outperform” rating from the Marketbeat community.