Emis looks to new chapter as it prepares for end-of-month float

The Leeds-based company last month revealed plans to raise 50m by

selling a quarter of the company to new institutional investors and floating on the Alternative Investment Market.

Emis was founded by two North Yorkshire GPs more than 20 years ago and computerises the records of patients of GP surgeries.

"A flotation on AIM will signal a new chapter in the group's development, enabling us to further incentivise management and build on our strong position by taking advantage of the growth opportunities available to us," said chief executive Sean Riddell.

"Emis benefits from a leading market position built on a loyal customer base in response to GP practice requirements for simple to use, scalable data systems."

Emis employs about 780 people, including about 500 at its Leeds headquarters. The group also has offices in Wakefield and Canada.

It currently holds more than 34m patients' records from 5,377 GP practices, representing 52 per cent of UK practices.

It works on an annual licence model, and generated operating profit of 15.8m on turnover of 58m in 2009.

Emis said it plans to issue 25m of new shares which will be placed with institutional investors. Existing shareholders, who are mainly staff, will place another 25m of shares with institutions.

Some of the proceeds will be used to repay a 23m loan to the company from its founders, the group added. Emis had net debt of 30m at the end of 2009.

Funds will also be used to launch a new product, Emis Web, which will connect GPs with other NHS professionals by enabling secure and shared access to patients' electronic records.

The aim is for staff – from chiropodists to neurosurgeons – to have access to patients' medical histories at the click of a button, allowing them to make faster and better informed decisions.

Emis said the listing will allow it to broaden its shareholder base, as well as creating a mechanism to incentivise staff. It said admission to the stock market will also give it greater flexibility to fund further growth, both organic and acquisitive.

Emis said it intends to pay a dividend twice a year, with an interim dividend of 3.25m payable in October. The group added it has been trading in line with expectations.

Evolution Securities is acting as nominated adviser and broker to Emis.