EMIS Group strong despite NHS 'sluggishness'

Connected healthcare software and services EMIS Group announced its final results for the year to 31 December on Thursday, with total revenue rising 2% to £158.7m and recurring revenue 4% stronger at £128.5m.

The AIM-traded firm recorded adjusted profit of £38.8m, up 6% on 2015, while its reported profit surged 106% to £23.5m.

Cash generated from operations was up 4% to £38m, while the company’s net debt narrowed to £0.4m from £9.1m in the prior year.

Adjusted earnings per share stood at 49.4p, up 9%, while reported earnings per share were 320% firmer at 30.4p.

The board proposed a final dividend of 11.7p, bringing the total dividend to 23.4p - both up 10% year-on-year.

“Overall our businesses continue to deliver results in line with our expectations,” said chief executive officer Chris Spencer.

“This is despite headwinds created by the NHS funding gap which create a difficult operating environment for the group with delays to the pace and level of procurement activity.”

Spencer claimed the company remained “clear market leaders” in primary care and again increased its market share in CCMH.

“Our new community pharmacy product is being rolled out into independent pharmacies and implementation of the AAH/Lloyds contract will see our market share grow close to 50%.

“The NHS's plans to bridge its funding gap continue to cause sluggishness in immediate discretionary procurements.”

However, that planning process highlighted the group's unique ability to help bridge the gap, Spencer asserted.

“In light of the proactive operational steps we are taking, including structural reorganisation to improve efficiency and better align the group with its customer base, investment in a patient-centred digital platform, and continued strong revenue visibility alongside a solid order book and pipeline, we remain confident in overcoming short term headwinds and securing a positive outlook in 2017 and beyond.”