![\"Keith](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2024\/03\/Keith-Neilson-with-Craneware-logo.png\"){kind=logo}
Another bid for Edinburgh software company Craneware is \u201clikely\u201d on the back of weaker trading and a drifting share price, according to a firm of research analysts. <\/p>\n
The Canon Mills based firm, which is quoted on the Alternative Investment Market, does all of its business in the US where it supplies administrative software to the healthcare market.<\/p>\n
Bain Capital walked away from a takeover offer a year ago after the Craneware board rejected its proposed deal at 2650p per share, valuing the company at \u00a3940 million. <\/p>\n
Craneware said Bain\u2019s offer was at \u201ca price which the board believes fundamentally undervalues Craneware and its prospects\u201d. Craneware subsequently raised its profits guidance and hiked its dividend.<\/p>\n
However, in recent months the company\u2019s value has drifted, with its shares closing tonight at 1138p, giving the firm a market capitalisation of just \u00a3389m, less than half Bain\u2019s offer price.<\/p>\n
In a trading update last week it guided to what Panmure Liberum analysts described as a \u201cmaterial miss\u201d for FY26E, driven by delays in revenue from a key programme. FY26E numbers are now expected to be broadly flat on 2025.<\/p>\n
\u201cWe lower our estimates and target price to reflect this,\u201d said the analysts in a newly-published note. \u201cA key question is the extent these \u2018lost\u2019 revenues flow into FY27E. <\/p>\n
\u201cWe retain a Buy rating with a new 2580p target. Post a rejected proposal from Bain Capital, last June, at around 2650p, we believe another bid is likely.\u201d<\/p>\n
It was not clear whether Panmure Liberum expects any new bid to come from Bain or another interested party. <\/p>\n
After withdrawing its interest last year, Bain said it \u201cmay revive its interest, with the agreement of the Craneware board, if there is a rival offer\u201d.<\/p>\n
Craneware was co-founded by Keith Neilson, CEO, and Gordon Craig in 1999. Mr Neilson is one of the longest-serving CEOs of a publicly-quoted company.<\/p>\n
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