EMIS trades 'slightly ahead' of expectations in first half

(Sharecast News) - Healthcare software and systems specialist EMIS Group updated the market on its first half on Tuesday, which was "slightly ahead" of its expectations, with a return to "business-as-usual" despite the continuing challenges of the Covid-19 pandemic.

The AIM-traded firm said both revenue and adjusted operating profit were ahead of the comparative period in 2020, and pre-pandemic in 2019.

In its EMIS Health division, the group said it was delivering against the requirements of the GP IT Futures contract, while continuing to invest in its technology roadmap.

The revenue mix in the division reflected a "more normalised" trading period, with a higher proportion of non-hardware and connectivity tools revenues than the comparative period last year.

In EMIS Enterprise, the firm said it was continuing to execute in the areas of patient-facing services, analytics and pharmacy, most notably supporting the NHS Covid-19 vaccination programme through its 'Pinnacle' software.

The division said it had seen double-digit growth in both recurring and non-recurring revenues in the first half.

EMIS said it retained a "strong" balance sheet position, with net cash at period end on 30 June of £48m, up from £44.1m a year earlier.

It reported a first-half working capital outflow, including the settlement of the £7.3m VAT payment deferred a year ago.

"I am pleased that we have performed slightly ahead of expectations in the first half," said chief executive officer Andy Thorburn.

"Healthcare continues to be at the centre of the global agenda and, as the UK recovers from the pandemic, we are well positioned to meet the evolving requirements of the sector, both today and in the future.

"We remain confident in the outlook."

EMIS said it intended to announce its results for the six months ended 30 June on 9 September.

At 0924 BST, shares in EMIS Group were up 0.52% at 1,202.18p.