![\"Keith](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2024\/03\/Keith-Neilson-with-Craneware-logo.png\"){kind=logo}
Craneware, the Scottish supplier of financial software to the US healthcare market, has warned that profit and revenue growth for the year will be below market expectations.<\/p>\n
In a trading update the board said FY26 revenue will come in between $205-$208 million with adjusted EBITDA of $65-$67m, both broadly in line with FY25. <\/p>\n
This change results from product conversion into revenue and the deferral of a small number of significant enterprise contracts, which are now expected to contribute during FY27. <\/p>\n
Customer retention, customer demand and cash generation have remained strong throughout the year, said the Edinburgh-based company. However, the pace of turning opportunities into drug purchases slowed significantly.<\/p>\n
The board of the AIM-quoted company believes that these factors reflect a short-term timing impact to the FY26 results.<\/p>\n
It said that, looking ahead, customer demand is increasingly extending beyond software and analytics towards technology-enabled operational transformation that helps healthcare providers realise the opportunities identified by the group\u2019s platform. <\/p>\n
Craneware has been developing these capabilities over the last three years and they now represent a meaningful and growing component of the group\u2019s offering. This reinforces, rather than diminishes, the long-term strategic importance of Craneware\u2019s platform within the evolving US healthcare ecosystem.<\/p>\n
The board will provide a further update with the announcement of the Group\u2019s full year results in September 2026.<\/p>\n
Keith Neilson, CEO, said:\u00a0\u201cNaturally we are disappointed not to have delivered the growth that we expected in FY26. While the short-term complexity in the pharmacy market has impacted the year, the long-term opportunity remains intact.<\/p>\n
\u201cThis reinforces our strategy of expanding beyond software and analytics into technology-enabled operational transformation that helps customers realise the opportunities identified by the group\u2019s platform, and this is a continuing area of focus for our innovation efforts. <\/p>\n
\u201cWe believe this strengthens both our customer relationships and our long-term growth opportunity, as healthcare providers increasingly seek trusted partners capable of combining data, workflow automation and operational expertise to deliver measurable financial outcomes. <\/p>\n
\u201cOur role is evolving from helping customers identify opportunity to helping them realise it.<\/p>\n
\u201cWe continue to benefit from high levels of customer retention and cash generation, providing us with a strong financial foundation to execute on our strategy.\u201d \u00a0<\/p>\n
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