SHARES in Craneware climbed more than four per cent after it hailed confidence in its US outlook and flagged a significant boardroom change.

George Elliot, its chairman, also signalled his departure as the firm posted results for year ended June 30, 2019.

He will not seek re-election in the annual general meeting in November after 12 years in the role.

The search has started for a new chairman, he said.

In its results, one-off costs for the Edinburgh-based healthcare revenue management specialist dented profits.

Revenue increased 6% to $71.4 million against $67.1m the year before, while profit before tax was $18.3m, with the reduction being as a result of a $1.2m cost related to a significant proposed acquisition “that the board decided not to enter into”.

READ MORE: Edinburgh technology firm sees shares slump after sales warning

Craneware cited ongoing transition of the US healthcare market to value-based care, supporting its own software product suite, as one of its highlights of the year, while sales in the year amounted to $63.1m, against $98.6m the year before and in 2017 $54m.

It flagged continued investment in R&D, adding: “We continue to sign contracts with hospitals of all sizes and have had a strong start to the year”.

It said there is a “confident outlook supported by strong sales pipeline”.

Shares were up 4.11%, or 75p, at 1,900p on the news.

Keith Neilson, Craneware chief executive said: “The ongoing transition to value-based care is a powerful underlying driver for our software, as healthcare providers seek the means not only to survive but thrive in this new era."

READ MORE: Edinburgh healthcare firm on track for $1bn milestone

Mr Neilson also said: “While growth in the year was lower than originally anticipated, renewal levels remained strong and our Trisus related sales and revenues continued to increase, providing us with a strong platform for the future. We have entered the new financial year with an uptick in sales momentum.

“We are focused on the delivery of our growing opportunity and have the correct strategy to succeed.

“With growing levels of contracted future revenue, strong operating margins, healthy cash balances and a growing sales pipeline, we look to the coming years with confidence and high levels of excitement for the opportunity ahead.”

Mr Elliott said: “The company is entering a new phase and I feel that now is an appropriate time for me to hand the ‘baton’ on to a new chairperson at the forthcoming AGM in November 2019, and as such I will not be seeking re-election.

"The search for my successor has already begun and we will update shareholders at the appropriate juncture.”

He also said: "This year saw Craneware celebrate its 20th birthday.

"From an idea in 1999 to use software to automate the maintenance of a hospital’s central database of billing codes, Craneware has grown to become a trusted partner to over a third of all US hospitals, its software providing insight into an increasing number of areas in their businesses."