(Sharecast News) - Healthcare software specialist EMIS Group reported a 2% increase in total first-half revenue on Thursday, to £88.8m.
The AIM-traded company said recurring revenue saw a 6% increment to £76m, while its adjusted operating profit jumped 7% to £23.9m.
Its reported operating profit for the six months ended 30 June, however, saw a decline of 17% to £12.7m.
EMIS Group said its adjusted operating margin grew 120 basis points to 26.9%, while its reported operating profit margin dropped 320 basis points year-on-year, ending up at 14.3%.
The firm's adjusted cash generated from operations was £20.7m, a decrease of 24%, and reported cash from operations was £17.2m, marking a decline of 39%.
Its net cash stood at £48.5m at the end of the period, down 10%.
On the earnings front, adjusted earnings per share were ahead 2% at 29.7p, but reported earnings per share decreased 22%, coming in at 15.1p.
Given the performance, the company announced an interim dividend of 21.3p, making for a substantial rise of 21% compared to the prior year's half-year distribution.
The board said the first half was indeed positive for EMIS, with both revenue and adjusted operating profit meeting its expectations.
It reported significant new customer acquisitions in community pharmacy under its EMIS Enterprise sector, and also cited the expansion of its data solutions portfolio.
The company's health segment, EMIS Health, maintained strong ties with its NHS clients and focussed on enhancing its technology and cloud capabilities.
Looking ahead, the firm said it was keen on achieving consistent revenue growth in alignment with its business plan.
The group's technology strategy, aligned with NHS policy, placed it in a strong position for future growth, the board added.
EMIS also updated shareholders on the all-cash acquisition offer announced by a subsidiary of UnitedHealth Group on 17 June 2022, to purchase the entirety of EMIS Group's ordinary share capital.
The proposed deal was set to be facilitated through a court-sanctioned scheme.
It said the UK's Competition and Markets Authority (CMA) provisionally cleared the acquisition in its phase two investigation, publishing its findings on 11 August.
The final decision by the CMA was expected by 5 October.
If the scheme did not become effective before 7 October, EMIS shareholders would receive an interim dividend of up to 21.3p per share.
That dividend would be payable on 23 October to shareholders registered on 6 October.
The payment of the dividend would not affect the acquisition cash consideration of 1,925p per EMIS share, the directors said.
"The first half of the year has been positive and in line with our expectations," said chief executive officer Andy Thorburn.
"The business continues to perform well, building on its strong foundations, with solid organic growth, good visibility and increasing levels of recurring revenue.
"EMIS continues to focus on developing its technology and cloud refresh strategy to support its customer base in both the NHS and enterprise segments, as well as continuing investment in EMIS Web."
Thorburn said its strategy to address the needs of the healthcare sector as it increased its reliance on data remained focussed and relevant, and as a result the company was looking forward with confidence.
"We expect to be able to provide a further update on our acquisition once the CMA has issued its final report and, in the meantime, we are pleased to have declared an interim dividend."
At 1314 BST, shares in EMIS Group were up 0.1% at 1,920p.
Reporting by Josh White for Sharecast.com.
