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Software firm to beat sales forecasts

CRANEWARE has said it expects sales in the first half of its financial year to be around 5% ahead.

The software company, which sells exclusively into the US healthcare market, indicated its sales have seen "positive momentum" in the six months to December 31, 2013 with larger and longer contracts being secured.

The majority of the revenue and margin from recent sales will be recognised in future periods which will give the Edinburgh business additional forward visibility.

It confirmed it is also on course to report a 5% uplift in earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year period and the board are confident of meeting full-year market expectations.

Keith Neilson, chief executive, said: "The continued incremental increases in the size of hospital groups, overall deal size and increasing number of longer term contracts signed during the period provided a strong sales performance and resulted in recognised revenue and EBITDA growth.

"Importantly, the increased sales activity will flow through into revenue and EBITDA contribution in the second half of the year and beyond, providing further visibility over future contracted revenues and supporting continued growth."

The Edinburgh company was recently named by accountancy firm BDO as one of the biggest Scottish risers on the Alternative Investment Market (AIM) in 2013, adding more than £31 million to its market capitalisation in the year.

Yesterday shares closed up 4.5p, or 0.82% at 554.5p.

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