EMIS revenue flat, return to growth anticipated

Healthcare software and technology company EMIS reported a 4% improvement in recurring revenue in its final results on Thursday, to £130m, as total revenue remained flat at £159.5m.

The AIM-traded firm said its reported operating profit was 33% higher for the 12 months ended 31 December at £35.8m, while on an adjusted basis, it was in line with the prior year at £39.3m.

Earnings per share were down 1% on an adjusted basis at 51p, while reported earnings came in 34% higher at 48.1p per share.

The company’s net cash was ahead 70% over the prior year at period end, at £53m.

Its board proposed a final dividend of 16p per share, up 3% over 2019, making for a total distribution for the year of 32p per share, also 3% firmer.

Looking ahead, EMIS said it was “well-positioned” to respond to its customers’ challenges with a combination of its technology, 82% recurring revenue and “leading” market shares.

It said its EMIS-X product offered “significant” potential to grow the business in both the NHS and life sciences sectors in the mid-term, while its business model would enable it to adapt to proposed changes to the organisational structure of the NHS.

Current trading was in line with expectations, the board said, with a healthy pipeline of opportunities.

EMIS said it expected to return to growth in 2021, with new product developments leading to opportunities for higher growth levels in 2022 and beyond.

“While Covid-19 presented unprecedented challenges to the sector, it has also been a catalyst for change, leading to a more rapid adoption of digital healthcare that is here to stay,” said chief executive officer Andy Thorburn.

“We believe that EMIS Group is well positioned to respond to the challenges our customers face, with a combination of our innovative technology, leading market shares and strong recurring revenues that enable us to invest with confidence.”

Thorburn said the company’s product development investment meant its current and emerging software was “well-suited” to meet the evolving requirements of the healthcare sector.

“We remain focussed on the vision of a digital, connected healthcare world and we look forward to achieving great results for our customers, colleagues and shareholders.”

At 1231 GMT, shares in EMIS Group were down 0.65% at 1,110.69p.