EMIS.L Share News (EMIS)

LONDON (Alliance News) - UK healthcare software and services company EMIS Group PLC Friday said that an agreement has successfully been reach with The Health and Social Care Information Centre, regarding the commercial terms of Lot 1 of the expanded English GP Systems of Choice framework.

Lot 1 covers the centrally funded GP Clinical IT system functionality, support and hosting, essential for a modern paper-light practice and already in use by a large majority of practices.

EMIS said that the framework will govern the provision of the majority of its clinical IT system-related services to GPs in England, for at least the initial framework term of two years.

It said the framework envisages extension for a further term of up to two years, and the first procurements under the framework cover the period to December 31, 2016.

EMIS said that discussions are also continuing regarding the less material and locally funded GP Systems of Choice Lots 2 and 3, which it expects to concluder later this year.

Lot 2 covers other functionality that supports GP practices which may be through integration with the principal clinical system or may be independent.

Lot 3 covers services that integrate with Lot 1 systems to deliver end-to-end interoperability between GP practices and other care settings.

EMIS said it considers the outcome of the Lot 1 negotiations to be positive and in line with management's expectations.

"The revised Framework offers opportunities for EMIS Group to benefit from a degree of additional funding in exchange for expanded and enhanced capabilities and increased usage," the company said.

The group said it expects no material effect on profits in the current financial year to December 31, 2014, with the benefit starting to flow in 2015.

Last week, EMIS Group raised its total dividend for 2013 as pretax profit rose, driven by the roll-out of its EMIS Web product, although the rise in revenue was offset by higher staff costs and operating expenses.

EMIS shares were trading at 625.00 pence per share Friday afternoon, down 0.50 pence.

By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty

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