Craneware, an Edinburgh-headquartered software firm with strong ties to the US healthcare sector, has revealed its pre-tax profits have risen in the year ending June 2018.

The company, which operates almost exclusively in the US healthcare sector, reported a pre-tax profit increase of 12% to £14.7 million. Profits in 2017 were recorded at £14 million. The firm’s revenue also rose by around 16% to £52.2 million.

As the company grows from strength to strength, industry figures have hailed it as a great example to firms in Scotland and an inspirational success story.

Confident Outlook

Following the announcement, the board said it is confident for the company’s outlook in the years ahead. With a record sales pipeline for the current financial year, the firm has a £40 million plan to fund future acquisitions.

Highlights from the previous year include a 100% increase in new sales as well as five high-profile contract wins or contract extensions. Cash at the year-end stood at more than $52.8 million after having returned in excess of $23 million to shareholders through a share buyback and dividends.

The company also invested more than $4 million in the Employee Benefit Trust.

CEO Keith Neilson said that this could be the first step in a long journey to success and that the company is “excited by the far great opportunity that lies ahead.”

He commented: “It is clear that the investments we have made into the organisation’s design, people and products are delivering excellent results, and we will continue to invest in our people and businesses to ensure we have the capabilities to succeed.

“With an ongoing, growing market opportunity, a record sales pipeline and increasing long-term revenue visibility, we enter the new financial year with great confidence for the future and ongoing success of the business.”

Neilson added that the company will continue to enable healthcare providers, supporting hospital-wide decision making and ultimately create a lasting, positive impact on the quality of healthcare.

Great Success Story

John Moore, senior investment manager at Brewin Dolphin in Scotland, said that the company is a “great example of a ground-up, independent success story in Scotland – something that is regrettably rare.”

Moore suggested that its record sales pipeline signals a bright future.

“Today, the company has posted another strong set of results,” he said. “Craneware’s sales pipeline is at record levels, which bodes well for the future, and management has delivered a very upbeat statement about the business’s future prospects.

“The company announced a number of significant contracts, but the scale of the US healthcare market remains vast and there is still much potential for growth.”