Megabuyte - Technology sector intelligence

Craneware firing on all cylinders; looks forward to even stronger growth

Provider of software to the US healthcare sector Craneware has issued its full year results revealing further strong growth in revenues and order book. Revenues for the year to June increased 23% to $28.4m and the contracted order book was up an impressive 49% to $89.8m. EBITDA jumped 31% to $7.6m; a margin of 26.7% and net cash generated was $3.3m (even after a $3.0m dividend payout) taking net cash to $29.4m. The total dividend (yes we did say dividend – other ‘high growth software companies’ please take note) for the year was 8.0p representing a 50% payout ratio. Read more in newswire Plus.

Medicine finally working at Kofax

It’s been a long haul for Kofax to reorganise and re-energise its business over the last couple of years but full year results to June released this morning show that the medicine is finally starting to work. Revenues for the year to June increased 14.8% to $342.4m and this was despite the ongoing decline in hardware revenues. Software revenues jumped 27% in the year (helped by acquisitions) to $215.8m and the division delivered operating profits up from $13.8m to $24.8m. Unfortunately however, as highlighted in the recent trading update, the hardware business was a significant drag on these results. See Newswire Plus for more.

Maintel maintains progress

Telecoms maintenance and network services provider Maintel has issued a robust set of interims, with revenues up 13% to £10.6m, aided particularly by equipment sales, and estimated EBITDA up by 30%. Cash conversion was good at 112%, leaving net cash up £0.5m at £3.02m, and the company is increasing its interim dividend by 26%. Revenues should continue to growth this half, though margins will be hit by the new Avaya relationship with Westcon. Overall, Maintel remains a solid performer in difficult markets. Newswire Plus has more.

Bond warns of sluggish recovery in demand

Recruitment software vendor Bond International has warned that sluggish demand for its software in the first half may result in a revenue shortfall for the year to December and may also mean that profit targets are not met. Group revenues for the first half were down 11% to around £15.2m which will come as a surprise to the market which is currently looking for the company to increase its revenues this year by 8% to £35.2m. In response to the weaker than expected performance, Bond has cut its costs and, importantly, the statement says that the Board is ‘very optimistic’ about signing new business by the end of the year. Also on a more positive note, Bond says that cash flow has improved – readers may remember that we have had some significant concerns about Bond’s cash flow in the past (Premium Plus subscribers read more here Cash flow becoming an issue for Bond). See Newswire Plus for more.

Further progress for Brady in H1

Provider of software to the commodities trading sector Brady has issued a positive set of interim results this morning showing revenues up 25% to £4.6m with profits up 29% to £0.3m. Cash conversion was impacted somewhat by a £0.6m increase in working capital and net cash, after the £2.0m acquisition of Viveo, declined from £5.9m at the year end to £3.3m at the end of June. The results are accompanied by a positively worded trading update and the acquisition of Viveo (renamed Brady Switzerland) is said to be integrating well.