(Alliance News) - EMIS Group PLC on Wednesday said it continues to make investments in its products as it sees an improved demand for its software.
Ahead of its annual general meeting, the healthcare software company said trading for the year to date is in line with its expectations, as it is focussed on supporting its customers in tackling the challenges posed by the Covid-19 pandemic.
EMIS said it has dedicated a team to respond to urgent requests from NHS and Community Pharmacy customers for functionality changes and new patient-related, data-driven insights.
Elsewhere, the company said it continues to have high levels of recurring revenue and remains in strong financial position, with the expected normal seasonal cash inflows increasing the cash position to GBP40.0 million at April 30.
The company said it has no bank debt and undrawn banking facilities of up to GBP60.0 million.
Subject to approval at Wednesday's annual general meeting, the 2019 final dividend payment of 15.6 pence per share, amounting to GBP9.8 million, will be paid as planned on Monday next week.
Looking ahead, following a good start to the year, EMIS said it expects trading patterns to alter due to the need for flexible working solutions for its customers.
While recurring revenue has continued as normal, new business sales have been lower than in 2019 and weighted more towards lower-margin hardware, EMIS notes.
In addition, the company said it plans to continue investing in the execution of its strategic roadmap, rather than take short-term cost-saving measures in response to Covid-19.
EMIS said demand for its Patient Access service has continued to grow, surpassing 10 million registered users, up from 8.4 million at the end of 2019.
"While the group continues to navigate short-term market volatility, the board believes that it is in the best interests of all stakeholders to continue with the execution of the strategic product roadmap to deliver greater integration and efficiency in healthcare," said Chief Executive Andy Thornburn.
AIM-listed EMIS shares were trading 0.1% lower in London on Wednesday at 1,031.50 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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