- Craneware has issued an update for the year ended 30 June confirming a third consecutive year of record sales performance and a return to double digit growth at the revenue and adjusted EBITDA level.

The group has seen greater than 60% growth in the value of 'new sales' contracts signed of c$58m (2015 $35.9m) with the average new contract length being maintained at 5 years.

Included in the year's sales success are two significant contracts. The first announced on 2 February was for a 50 hospital group in excess of $7.5m revenue over its five year life.

In addition to this the company says it finished the year with a further multi-hospital group contract win. Starting in FY17, the contract is expected to deliver revenue greater than $8m during the next five years, as the hospital network rolls out multiple Craneware core value cycle solutions. In accordance with the Company's revenue recognition policy, the majority of the revenue resulting from all sales will be recognised over future periods, adding to the group's long term visibility of revenue under contract. Accordingly the group expects to report an increase of 11% in revenues and 10% in adjusted EBITDA for the year ended 30 June 2016. Other key performance indicators continue to be positive.

The group continued to renew hospitals that were due for renewal in the year at an average of above 100% (by $ value) and customer retention continues to be significantly higher than the industry norm. Strong cash generation resulted in cash reserves in excess of $47m at 30 June 2016 (2015 $41.8m).

Chief executive Keith Neilson said: "US Healthcare providers continue to address the challenges the new value based re-imbursement environment brings. We believe our continued sales growth demonstrates the strategic importance of Craneware and its Value Cycle solutions to them as they meet these challenges. The ongoing investment we are making to develop solutions that discover, convert and optimise value for healthcare providers, combined with our own historical sales successes, double digit revenue and adjusted EBITDA growth, give management confidence in its ability to deliver continued future growth as well as increasing stakeholder value."

The company will announce its full year results on 6 September.

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