14 Jul 2020 07:00
14 July 2020
EMIS Group plc
("EMIS Group" or "the Group")
Trading update
Notice of half year results
EMIS Group plc (AIM: EMIS.L), the UK leader in connected healthcare software and systems, today announces a trading update for the six months ended 30 June 2020.
Overview
Trading for the half year has been in line with the Board's expectations, despite uncertainty due to the COVID-19 crisis, albeit revenue was marginally behind the comparative period last year. Although there continues to be some uncertainty regarding the timing of new sales delivery, the Board's expectations for the full year remain unchanged.
Divisional review
In EMIS Health, the Group's leading NHS market shares have been maintained. As anticipated, new business sales moved forward albeit with a different product mix with lower gross margins, mitigated by reduced costs.
EMIS Enterprise has grown its recurring revenues. In contrast to the comparative period in 2019, opportunities for non-recurring contracts have been limited during the lockdown period, however there are some early signs of recovery in the market.
As previously indicated, and given its strong financial position, the Group has continued to invest in the development of its strategic roadmap while carefully controlling costs across the business. It should be noted that no staff have been furloughed during the pandemic.
Financial position
The Group's net cash at 30 June 2020 was £44.1m (31 December 2019: £31.3m), with the seasonal first half working capital inflow increased by the VAT payment holiday in the second quarter of the year (which amounted to £7.3m). The Group continues to have no debt, with banking facilities available of up to £60.0m.
Notice of half year results
The Group intends to announce its results for the half year ended 30 June 2020 on Wednesday 9 September 2020.
Andy Thorburn, CEO of EMIS Group, said:
"Our NHS customers have worked tirelessly to support the nation during the COVID-19 pandemic and we thank them all for their commitment and dedication. We have been delighted to play our part in keeping mission-critical systems available throughout this period while delivering urgent solutions quickly to site.
"In particular, I am very proud of the work that the EMIS Group team has done throughout the crisis, with particular thanks to our field-based engineering and delivery staff who continued to deliver products and services to practices and hospital sites, observing local social distancing rules and utilising full PPE to minimise risks to all concerned.
"We have performed well as a business in adapting to these new challenges and are hopeful that our markets will continue to recover during the second half of the year.
"The Board remains confident in the outlook for the business."
For further information, contact:
EMIS Group plc Tel: 0113 380 3000
Andy Thorburn, CEO
Peter Southby, CFO
www.emisgroupplc.com
@EMISGroup
Numis Securities Limited (Nominated Adviser & Broker) Tel: 020 7260 1000
Oliver Hardy/Simon Willis/James Black
MHP Communications Tel: 020 3128 8572
Reg Hoare/Giles Robinson/Florence Mayo
Information for investors, including analyst consensus forecasts, can be found on the Group's website at www.emisgroupplc.com/investors.
Notes to Editors
EMIS Group is the UK leader in connected healthcare software and systems. Its solutions are widely used across every major UK healthcare setting. EMIS Group's aim is to join up healthcare through innovative technology, helping to deliver better health outcomes to the UK population, supporting longer and healthier lives.
EMIS Group has two core business segments: EMIS Health and EMIS Enterprise.
EMIS Health is a supplier of innovative integrated care technology to the NHS, including primary, community, acute and social care.
EMIS Enterprise is focussed on growth in the business-to-business technology sector within the healthcare market, including management of medicines, partner businesses, patient-facing services and UK healthcare blockchain.
EMIS Group's brands include:
• EMIS Health, supplying innovative and essential technology to 10,000 healthcare users, in the number one or number two market positions in each of its major markets;
• Patient, the UK's leading independent provider of patient-centric medical and well-being information and related transactional services; and
• Egton, providing specialist ICT infrastructure, hardware and engineering services, and non-clinical software into health and social care.