Software developer aiming for £50m flotation

A LEADING developer of healthcare software has announced plans to float on the London Stock Exchange, helping lift the gloom surrounding initial public offerings.

The Leeds-based Emis Group, which was founded by two North Yorkshire GPs more than 20 years ago, said it plans to raise 50m by floating on the Alternative Investment Market.

Issuing 25 per cent of the company to new investors via a placing is expected to value Emis at about 200m, allowing management and its founders to cash in part of their stakes.

Hide Ad
Hide Ad

Emis employs more than 780 people, including about 500 at its headquarters in Leeds, and is owned by management.

The group was established in Egton, near Whitby, by Dr Peter Sowerby and Dr David Stable, who saw a growing need to computerise patients' paper records at GP surgeries.

Originally called Egton Medical Information Services, it has expanded to hold more than 34m patients' records, representing 52 per cent of UK GP practices.

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

Hide Ad
Hide Ad

The group's next phase will see the launch of a new product, Emis Web, which chief executive Sean Riddell said represents the future of healthcare software.

"Rather than having your data locked away, (the idea is to) start freeing it up so that you can start sharing it with other health practitioners," he said.

Emis Web 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 –

Hide Ad
Hide Ad

to have access to patients' medical histories at the click of a button, allowing them to make faster and better-informed decisions.

It will be compatible

with other patient data systems, and currently has about nine million patients' records after trials with healthcare trusts in Tower Hamlets, Liverpool and Gateshead.

Mr Riddell said the software has been proven to save time and money, as well as reducing patient waiting times and the risk of mistakes, which should make it attractive at a time of Government cost cuts.

"What we are looking to do is glue together cross-organisation healthcare," said Mr Riddell. "When seeing the patient for the first time, healthcare workers benefit from access to that record."

Hide Ad
Hide Ad

Via IT giant Logica, Emis already has a 10-year contract to provide the Ministry of Defence with a healthcare and dental records system.

The group also provides support services such as installing and maintaining touch screen hardware where patients can view their own medical records.

It plans to use the funds from the IPO to roll out Emis Web and provide funds for acquisitions. Emis said it will also allow it to incentivise it next tier of management and broaden its shareholder base.

The firm, which was bought from its original founders by management in 2008, declined to say how much management will recoup from the proposed float.

Hide Ad
Hide Ad

Aside from a loan borrowed by management from the founders, it should be virtually debt-free on float, Mr Riddell added.

The group also has offices in Wakefield and Canada. "Yorkshire and Leeds lead the way in healthcare computing," said Mr Riddell.

Emis joined fashion company SuperGroup and education technology firm Promethean in announcing plans to float, bucking worries about turbulent markets that have caused a number of recent IPOs to be shelved.

Fashion retailer New Look, which is backed by Apax Partners, theme park operator Merlin Entertainments and travel service group Travelport all pulled flotations last week.

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

Related topics: