EMIS revenue rises as it looks to post-Covid market

(Sharecast News) - Healthcare software and systems company EMIS Group reported a 7% improvement in total revenue in its first half on Thursday, to £83.5m, with recurring revenue rising 4% year-on-year to £65.8m.
The AIM-traded firm said its adjusted operating profit was £20m for the six months ended 30 June, up 13% year-on-year, while its reported operating profit slipped 2% to £16.3m.

Adjusted cash generated from operations was 56% weaker at £14.9m, and reported cash generated from operations fell 53% to £17m.

Net cash at period end totalled £48m, which was 9% higher than a year earlier.

Adjusted earnings per share rose 11% year-on-year to 25.6p, and reported earnings were 9% weaker at 20.8.

The board declared a 10% rise in the interim dividend, to 17.6p per share.

On the operational front, EMIS said it was engaged with "senior" NHS and enterprise business leaders on the future of the healthcare market post-Covid-19.

Its board said the company was "well-positioned" to meet the emerging needs of integrated care systems through the investments made in technology - particularly analytics, data integration and interoperability capabilities.

A "continued focus" on improving the customer experience was also noted, with "good progress" made in the period, particularly around the success of digital support channels.

EMIS said it was on track to complete the next stage of 'EMIS-X' through deployment of the fast healthcare interoperability resource (FHIR) layer, as planned.

Looking ahead, the board said there was a "clear line of sight" to meet its expectations for the second half.

The group's connected care strategy reflected the needs of the market both now and post-pandemic, it added, working with customers to develop the capabilities required.

It said it was focussed on consistent growth in the next stage of its organic evolution with strategic partners, as well as through targeted mergers and acquisitions.

"It has been a positive first half with good performance from the business, particularly in the sales, account management and delivery teams in both EMIS Health and EMIS Enterprise," said chief executive officer Andy Thorburn.

"We are returning to business as usual following the challenges of the pandemic during 2020 and we have maintained our investment in, and focus on, growth.

"We believe our connected care strategy positively reflects the needs of the healthcare market as it emerges from Covid-19, with an increased focus on data capabilities."

Thorburn said the company was working with its customers at both strategic and local levels to address their priorities.

"We have a clear line of sight to meet board expectations for the second half of the year and look forward to the future with confidence."

At 1111 BST, shares in EMIS Group were down 2.43% at 1,364p.