StockMarketWire.com - Craneware expects first half earnings before interest, tax, depreciation and amortisation to be more than 10% up on last time.

The group said it continued to perform strongly in the six months to the end of December.

Ongoing sales success has delivered an increase of 15% in the value of 'new sales' contracts signed in the six month period ended 31 December 2015 compared to the same period last year and renewals by dollar value in the period have continued at over 100%. In accordance with the Company's revenue recognition policy the majority of revenue resulting from these sales will be recognised over future periods, adding to the Group's long term visibility of revenue under contract.

As a result, the Group expects to report an increase of over 10% in adjusted EBITDA for the six months ended 31 December 2015 and a 7% increase in recognised revenue, compared with the same period last year.

High levels of cash generation in the period have resulted in cash reserves of USD45m (H115:USD41.8m). In addition, the Group has secured a funding facility from the Bank of Scotland of up to $50m. This will be available to the Group as it continues to investigate strategic opportunities to further expand its Value Cycle solution.

With growth in the period in line with management's expectations, high levels of cash generation and the continued sales momentum, the Board is confident in meeting market expectations for the full year.

Chief executive Keith Neilson said: "We are seeing the initial success of the 'Value Cycle', our vision for the process and culture by which US healthcare providers pursue quality patient outcomes and optimal financial performance, in our continued strong sales performance.

"The Group's strong financial position allows us to evaluate our options as we look to enhance and add solutions which support our customers in the new Value-based reimbursement environment.

"These factors combined with revenue recognition from contracted sales made in prior periods, gives management confidence in its ability to deliver increasing stakeholder value through this year and in the future."

The company will announce results for the six months ended 31 December on 8 March.





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