Research on Craneware plc (CRW:LON) from Capital Access Group
Craneware reported a strong set of results for the half year to December. The trading statement had already flagged double digit growth in adjusted EBITDA and that translated through to earnings with adjusted pre-tax profit up 14.1% to US$23.5m and adjusted EPS up 16.0% to USc58.7 supporting an 11.1% increase in the interim dividend to 15.0p. While we leave our forecasts unchanged, consistent with guidance that Craneware expects FY26 results to be in line with expectations, there looks to be scope for upside. Despite likely being a beneficiary of Artificial Intelligence, rather than a victim, Craneware has been caught in the general sell-off in the software sector driving the stock to unprecedentedly low valuations. Our unchanged DCF valuation of 3,112p indicates upside of over 100% and in our view, the software apocalypse has produced an exceptional opportunity in Craneware for the fearless and the thoughtful.