Emis on track despite timing issues

Chris Spencer, CEO of Emis, said the NHS remains supportive of the group
Chris Spencer, CEO of Emis, said the NHS remains supportive of the group
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HEALTHCARE software provider Emis Group said revenues jumped 13 per cent in 2015 despite the firm being held back by the timing of contracts.

The Leeds-based group said trading in the year to December 31 was in line with the board’s expectations and there was further progress in the like-for-like operating margin

Emis said it delivered growth both organically and through its recently acquired businesses and it has a strong order book.

In ​its ​Primary & Community Care​ division​, 2015 was the first full year after the roll-out of E​mis​ Web in England and the ​g​roup ended the year with a UK market share of 55​ per cent​.

The ​division secured an extension to the current UK Ministry of Defence contract for a further three years.

In the second half of the year, ​its Child Community and Mental Health ​business​ won seven contrac​t​s in the re-procurement of former NHS national programme​s.

​Chris Spencer, Emis CEO, said: “Emis Group has again delivered profit growth in line with our expectations.

“The NHS in England remains supportive of Emis Group’s strategy of delivering digital technology allied to cultural change that will help create faster and better care."

Speaking at Emis Health’s Primary Care offices last week, health secretary Jeremy Hunt said: ‘I want to help doctors and nurses provide faster and better care - and improving technology in the NHS is a key way to do that. The systems I've seen here today are helping put people in the driving seat when it comes to managing their healthcare.”

Analysts at N+1 Singer said in a note: "More of a mixed update from EMIS this year, although the group is still expected to report an in line performance at the EBITA level as margin improvement compensated for slightly slower revenue growth (13​ per cent​​ v​ersus​ our ​expectation of ​16​ per cent​), held back by timing of contracts in Secondary Care as we had feared.

​"​There will also be a partial writedown of goodwill in this division, so not great in that respect. The shares have been rock solid, but may ease off today on the back of this.​"​