CRANEWARE said it is “cautiously optimistic” sales cycles are stabilising in a set of final results that showed a five per cent increase in profit before tax to $19.3 million against $18.3m the year before.

The Edinburgh-based healthcare software company, which is focused on the US market, said there are signs of sales now slowly “normalising” as the firm posted results that also showed adjusted Ebitda (Earnings before interest, taxes, depreciation and amortisation) up 5% to $25.2m from $24m in the year to June 30.

The firm, which sells billing and financial management software to healthcare providers and employs 350 across its offices in Atlanta, Pittsburgh and the Scottish capital, said its balance sheet is strong.

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Keith Neilson, Craneware chief executive, said: “Craneware made good progress in the year despite the difficulties imposed by the Covid-19 pandemic in the final quarter.

“While we as a business were relatively insulated from the direct impacts of the pandemic, our customers were on the front-line, selflessly serving their communities. Supporting them and the phenomenal work their teams have done has been, and will continue to be, our top priority.”

Mr Neilson also said: “The challenges hospitals are currently facing, combined with the ongoing transition to value-based reimbursement, means this has never been more relevant, or important, and we will do all we can to support our customers through this time.

“We have experienced strong sales momentum in Q1 and continue to have sales discussions with hospitals across the US. We are cautiously optimistic we are seeing the first signs of sales cycles slowly normalising; however, we remain cognisant of the ongoing macro uncertainties.”

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Craneware highlighted the “rapid implementation of the business continuity plan and the transition of employees to remote working with minimal disruption to customers” and the total value of contracts for the year reaching $65.4m, against $63.1m the previous year.

It also said there was a “healthy sales mix”, with 90% of sales being to existing customers or new hospitals within existing healthcare system customers, “demonstrating the successful execution of our land and expand strategy”.

Shares in Craneware closed at 1,605p, up 2.88%.