EMIS Group delivers ‘solid’ half year performance

Andy Thorburn of EMIS group
Andy Thorburn of EMIS group
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Healthcare software provider Emis group said it had delivered a “solid” half year performance, despite facing a challenging political environment for the NHS.

The Leeds-based company helps healthcare professionals share vital information to improve the quality of patient care. EMIS Health products, including the flagship EMIS Web, hold more than 40 million patient records and are used by more than 100,000 professionals in nearly 6,000 healthcare organisations.

The group’s healthcare software is used in primary, community and acute care.

The Leeds-based company’s total revenue over the half year was £79.2m, an increase of one per cent on the first half of 2016. The adjusted operating profit was £17.5m, a fall of one per cent compared with the same period last year.

EMIS said the half year results were in line with the board’s expectations as the group continued to benefit from growing recurring revenue, strong market shares, a good order book and a developing pipeline. Around half of the group’s 1,800 staff are based in Leeds.

In a statement to accompany the unaudited results for the six months ended June 30 2017, EMIS said: “This was achieved despite the uncertainty created by the General Election and the ongoing slower rate of contract awards in larger NHS procurements.

“The group’s previously announced internal reorganisation programme has been expanded, with the cost-savings from the programme providing benefit from the second half onwards.”

EMIS said NHS England has been progressing its plans for the 44 locally based Sustainability and Transformation Partnerships (STPs), which were announced last year to transform healthcare services, “bringing together NHS and local authorities around the needs of local people”.

These have been underpinned by Local Digital Roadmaps to merge health and social care records across the STP areas, EMIS said.

The statement added: “While funding challenges and political events have delayed IT investment by STPs, EMIS Group continues to work with key STPs and remains confident that its integrated healthcare technology will be an attractive proposition in this emerging market.”

Andy Thorburn, the chief executive of EMIS Group, said: “EMIS Group has again reported a solid underlying financial performance in the first half, despite a challenging political and economic environment for the NHS.

“The board’s outlook for the full year remains unchangedThe extensive work already undertaken to reorganise the business, bringing together Primary Care, CCMH and Acute Care, has improved efficiency and better aligned the group and its customers.

“Further planned reorganisation in the second half of the year will drive greater internal accountability and consolidate the financial performance benefits of the restructuring.”

Mr Thorburn highlighted the fact that the company’s primary and community pharmacy businesses continued to move forward over the half year, and Emis was “incredibly well positioned” because its whole strategy was based around integrated care.

He said EMIS was recruiting skilled staff in Yorkshire and other technology businesses in the region seemed to be doing well, which was leading to a very competitive labour market.

He added: “The election period is behind us and we are looking forward.”

The company said its market leading 37 per cent share of the combined supermarket and independent market had also been maintained over the half year.

EMIS is continuing to maintain or expand its market share against a tough market backdrop, according to analysts from Numis.

The note continued: “EMIS, in our view, remains a very high quality asset, and we feel it remains a case of being patient whilst waiting to leverage the long-term structural opportunity in the digitisation of healthcare.”

Despite the overall “highly constrained” NHS spending environment there remain good opportunities available to EMIS, Numis said.

The note added: “The community pharmacy has maintained strong market share and delivered double-digit profit growth.”