Sales increase at EMIS

The Leeds firm, which supplies healthcare software to GPs, said turnover increased to 29.02m from 28.9m the previous year which is in line with management expectations.

In a pre-close trading update for the six months to June 30, the firm said its customers' discretionary spend on hardware and engineering services has been lower than anticipated but was compensated for by increases in core annually recurring revenues, particularly those relating to the provision of hosting solutions.

The company has been building the necessary infrastructure to enable the anticipated roll out of new and enhanced products and services, including EMIS Web, which is due to be rolled out in the autumn.

EMIS Web will electronically connect GPs with other NHS professionals by enabling secure, shared, centrally hosted access to patients' electronic health records held at the group's data centres.

The company said that EMIS Inc, the group's Canadian subsidiary, responsible for less than one per cent of group revenues in 2009, has not made the progress expected during the period and it is reviewing certain strategic options regarding this business.

The group said it continues to be highly cash generative with cash of 16.8m against structured bank debt of 6.4m at June 30 2010.

The directors also publicly welcome the recently published NHS White Paper proposing that responsibility for decision-making and commissioning of NHS services should be put in the hands of GPs.

Sean Riddell, chief executive of EMIS, said he believes that the group will benefit from from the anticipated changes in the NHS.

He said: "EMIS continues to trade in line with management expectations and the group remains well placed to benefit from the anticipated changes in the NHS.

"Healthcare professionals' ongoing requirement to securely share patient data in a time efficient, cost effective manner is fundamental to improving NHS frontline services and we remain on track with our strategy of delivering cross organisational healthcare systems through the implementation of EMIS Web and the formation of Healthcare Gateway Limited."