(Alliance News) - EMIS Group PLC on Wednesday lifted its interim dividend, amid a rise in profit on lower costs despite a dip in revenue.
For the six months to the end of June, the healthcare software and systems firm reported a pretax profit of GBP17.7 million, up 46% from GBP12.1 million the year before.
Staff costs fell by 15% to GBP29.7 million from GBP34.9 million, and the prior year also was affected by GBP2.1 million in reorganisation costs. Other operating expenses, meanwhile, dropped by 19% to GBP12.0 million from GBP14.8 million.
The reorganisation involved restructuring the business into two segments, EMIS Health and EMIS Enterprise, and investing more in internal systems.
Revenue however, declined 2% to GBP78.1 million from GBP79.8 million the year before, due to a weaker performance from EMIS Enterprise, as a result of a lack of significant licence deals and implementations during the recent UK lockdown.
EMIS declared an interim dividend of 16.0 pence per share, up 2.7% from 15.6p the prior year.
Looking ahead, the group said its expectations for 2020 as a whole remains unchanged, due to strong recurring revenue, and its position on the GP IT Futures framework.
EMIS also noted it has significant cash resources, which can go towards further acquisitions to build on capabilities.
"The group's financial performance in the first half of the year was excellent considering the backdrop and level of uncertainty caused by Covid-19. Our robust business model was key to this, as was our commitment to doing the right thing by our customers at all times. Our cash position and strong balance sheet mean we are very well placed to continue our strategy and invest for growth," said Chief Executive Officer Andy Thorburn.
"It was a privilege for us to support the NHS front line during the first wave of the pandemic. Our NHS colleagues are doing an outstanding job looking after the nation and we thank them for their service and commitment," Thorburn added.
Shares in EMIS were up 4.0% at 1,088.00 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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