Craneware, the Edinburgh-based software company, has agreed new banking facilities and a capital reduction that will support potential acquisitions and enable it to raise the dividend and launch a shares buyback.
The renewal of the revolving credit facility (RCF) over three years, with a two-year option, will complement the AIM-quoted group’s ongoing strong cash generation and proposed increase to distributable reserves.
The new unsecured $100m RCF consolidates the previous term loan and RCF, is at lower interest rates than the previous facilities, and provides a further $100m accordion facility that could support potential M&A activities. The facilities have been provided by a consortium of HSBC, Barclays, NatWest and Santander.
Alongside the refinancing, the board has initiated a proposed reduction of capital, as announced on 1 August. This would create additional distributable reserves of $284.2m, giving the company further flexibility to deliver shareholder returns over the coming years, either in the form of distributions and/or purchases of the company’s own shares.
In July, the group – which supplies billing software to the US healthcare market – confirmed it had experienced positive trading throughout the fiscal year ended 30 June, delivering continued strong revenue growth, and a double digit increase to profitability, ahead of prior expectations.
The group continued to deliver high levels of operating cash conversion, which have been invested in the product portfolio, and reducing debt, with total bank debt reduced to $27.7m at 30 June 2025 (FY24: $35.4m), whilst retaining healthy total cash reserves of $55.9m (FY24: $34.6m).
Final results for the year ended 30 June will be announced on 15 September.
Keith Neilson, CEO, said: “We would like to thank our banking partners for their continued support of the business and belief in our growth strategy.
“Our strategic position at the heart of the US healthcare market, strong balance sheet and positive trading provides us with a strong position from which to explore multiple avenues for growth, as we support our customers in the transformation of the business of healthcare.”
Earlier this year, Craneware saw off a potential bid from Bain Capital.
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