Final week’s provide for Micro Focus Worldwide (LON:MCRO) implies that one other well-established UK tech inventory is prone to find yourself in North American possession.

Micro Focus isn’t the primary UK tech inventory to succumb to a bid this yr. In June, UK healthcare software program group EMIS (LON:EMIS) (I maintain) really useful a 1,925p per share bid from US group UnitedHealth to shareholders – a 49% premium to the prevailing share worth.


EMIS sells software program that’s utilized by GP surgical procedures and elsewhere within the NHS. Jack gave a very good overview of the enterprise again in Could.

With the EMIS deal anticipated to finish later this yr, I’ve been searching for comparable shares I would select to exchange this healthcare software program group in my portfolio. I reckon that fellow AIM software program agency Craneware (LON:CRW) could possibly be an fascinating selection.

Craneware was based by Gordon Craig and Keith Nielson in 1999. Neilson stays CEO and each males nonetheless have materials shareholdings:


The corporate’s authentic product was the Chargemaster system. This helps US hospitals to precisely itemise and invoice the entire chargeable companies and merchandise utilized by sufferers throughout their keep.

Craneware’s product vary has since expanded considerably, however the firm’s give attention to serving to US hospitals to maximise income and worth precisely hasn’t modified.

The corporate expanded additional final yr when it acquired US agency Sentry Knowledge Techniques for $400m. Sentry seems to supply comparable companies for pharmacies to those who Craneware gives in hospitals.

I feel it’s fascinating to notice that Craneware more and more positions itself as a knowledge firm quite than a software program agency. One of many promoting factors for the deal, in line with the discharge, was the “commercialisation alternative” for Craneware’s Trisus product suite that might come from entry to Sentry’s 147m distinctive affected person data.

Up to now, I’ve been interested in Craneware’s excessive margins and recurring revenues, however discouraged by the inventory’s robust valuation. That’s much less of an issue now.

The group’s earnings stalled in 2018, which appears to have triggered a complete de-rating of the inventory:


Nonetheless, dealer forecasts counsel that Craneware’s earnings are actually anticipated to hit new highs, helped by the contribution from Sentry:


Craneware’s P/E…

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