Revenues rise as EMIS shake-up leads to job losses and the creation of new roles

EMIS EMIS Group has seen a rise in revenue following the disposal of its Specialist & Care business.
EMIS EMIS Group has seen a rise in revenue following the disposal of its Specialist & Care business.
0
Have your say

A shake-up at healthtech and software business EMIS Group has led to 100 staff leaving the business - but the company is creating 100 new jobs.

Speaking to The Yorkshire Post, chief executive Andy Thorburn said he was not reducing overall staff numbers but the reorganised Leeds-headquartered business needed different skills.

It has already recruited 25 staff in Leeds in the last two or three months. “This isn’t about reducing headcount,” he said.

Mr Thorburn was speaking as the group announced its half-year results for the six months to June 30, 2019.

Revenues stood at £79.8m – up seven per cent from £74.4m in the previous year. Meanwhile, pre-tax profits dropped to £12m from £12.4m.

Mr Thorburn said: “It’s been a positive period and we’ve managed to move our agenda along and our financial performance was good. Our adjusted operating profit increased from £16.8m to £18.2m.”

He added that the dip in pre-tax profit was due to a £2m one-off cost during the reorganisation of the business.

The group completed the disposal of its Specialist & Care business on April 2 for £14.9m. It said the division was non-core to the group’s operations and future growth strategy.

The business has re-structured with two divisions: EMIS Health and EMIS Enterprise.

EMIS Health, which makes up about two thirds of the group, generates its revenue from NHS organisations, while EMIS Enterprise comprises revenues predominantly from the private sector, including the results of the community pharmacy and Patient divisions, which were previously reported separately.

Mr Thorburn said there were good opportunities to grow EMIS Enterprise so the two divisions were equal parts of the group.

“We’re looking at organic growth and also acquisitions,” said Mr Thorburn. “We’re not in a rush, we just want to find the right fit for the business.”

He added that he was pleased with the progress of its EMIS-X technology and the release of new pharmacy appointment booking capability in its Patient Access app.

“We have continued to invest in our software development teams and we plan to further scale up resources in product management and software development in the second half of 2019,” Mr Thorburn said.

EMIS said the group maintained its leading market share positions during the period.