Scotland business

Sales boost for medical tech firm Craneware

Hospital scene Image copyright Thinkstock

One of Scotland's leading technology companies has reported a significant boost to its sales, as it targets expansion.

Craneware, based in Edinburgh, sells software to American hospitals and clinics.

In a trading update, it reported the second half of 2015 saw a 15% rise in new sales contracts, compared with the same part of 2014.

Renewals of contracts rose in value.

Craneware informed investors that it expects pre-tax earnings for the second half of the year to be more than 10% above higher than the previous year, with revenue up by 7%.

The company has secured a loan facility of $50m (£35m) from Bank of Scotland.

The update says that will be available as the company assesses strategic options. That could be for growth or acquisition.

Keith Neilson, chief executive of Craneware and its second largest shareholder, commented: "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 improved figures come after a period of uncertainty in the US healthcare market, as providers adapted to the Affordable Care Act, also known as Obamacare.

Earlier this decade, Craneware disappointed investors with its financial results. But more recently, it has claimed that its market has settled, and large hospital groups have been signing up to its management software.

It employs 200 people, and has offices in Georgia, Massachusetts and Arizona. In the past year, its share price has risen 57%.