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Software specialist Craneware reveals healthy trading in US

MEDICAL software firm Craneware saw its shares soar more than 4.5% after revealing its half-year revenue is likely to be about 7% ahead.

The Edinburgh company expects revenue to come in at $20.1 million in the six months to December 31, against $18.8m from the same period in 2011.

The firm – which specialises in healthcare revenue management software – said earnings before interest, tax, depreciation and amortisation are tracking 15% up on the $4.65m reported for 2011.

Keith Neilson, chief executive, said: "The increased levels of sales activity discussed at the time of our final results in September 2012 have begun to contribute to revenue growth.

"Fiscal and regulatory pressures on US hospitals, including the recently announced expansion of the Medicare Recovery Audit Contractor programme, continues to drive interest in our suite of software solutions and we are confident in the ongoing strength of our position within this growing area of the US healthcare market."

Vijay Anand, from Espirito Santo, stuck with a neutral rating on the stock.

He said: "The lack of visibility on the timing and scope of potential benefits from regulatory drivers limits upside potential in our view."

Chris Glasper of N+1 Singer kept a buy rating while Numis upgraded Craneware from reduce to hold.

The shares finished the day up 17.5p at 405p.

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