TIDMEMIS
RNS Number : 1407V
EMIS Group PLC
26 January 2017
26 January 2017
EMIS Group plc
("EMIS Group" or "the Group")
Trading update for the year ended 31 December 2016
Notice of final results
EMIS Group plc (AIM: EMIS.L), the UK leader in connected
healthcare software and services, today announces a trading update
for the year ended 31 December 2016.
Overview
Trading in the second half of the year was consistent with the
market conditions experienced in the first half and overall
performance for the year was in line with the Board's
expectations.
This performance was in the face of an increasingly difficult
environment created by the severe pressures on NHS funds and of a
procurement pause as the NHS's local plans to address its funding
gap emerged (called Sustainability and Transformation Plans or
STPs). Furthering the NHS's national strategy of connected care
through an increasingly digitally joined-up NHS is an important
part of STPs. At the same time, the Group continues to benefit from
its strong revenue visibility, market shares, solid order book and
pipeline.
Divisional overview
In Primary Care the Group's leading market share has been
maintained and the roll-out of EMIS Web for Northern Irish GPs is
ongoing although more slowly than anticipated. Market share has
again increased in Community, Children's and Mental Health (CCMH).
The new Community Pharmacy product is now accredited throughout the
UK and has already been installed in 25 independent pharmacies. The
business is also preparing for implementation of the AAH/Lloyds
contract that will see market share grow close to 50%.
Secondary Care and, to a lesser extent, CCMH were most affected
by the pressures on NHS funds. Secondary Care benefitted from
cost-improvement measures taken in the first half of 2016 and
performed largely in line with expectations. Specialist Care's
performance continued to be held back by additional costs
associated with the implementation of its new contracts and some
operational inefficiencies, but the business is focused on
improving the profit profile over the life of the contracts.
Pending such improvement, the Board is considering a non-cash
impairment charge to reflect the delay in contribution created by
those additional costs.
On 3 October 2016 Patient.info, the UK's leading independent
provider of medical and well-being information, appointed a new CEO
who has two decades of digital media experience. He joined the
business to accelerate its growth into a market-place e-commerce
platform connecting Patient's global audience to a network of
digital healthcare services. The Group is currently considering the
business models and associated levels of investment required to
deliver the benefits of this opportunity.
Market and internal structures
Reflecting anticipated changes in NHS models of care, the Group
has decided to accelerate its internal integration in 2017. The
Group is bringing together its primary, community and secondary
care businesses under common leadership. This will both align the
Group with the NHS's need to deliver more integrated care between
hospitals, GP practices, and community services and optimise the
Group's cost base. The Group will provide an update on progress and
the financial implications with the final results. The majority of
the integration exercise is expected to be completed by the end of
the first quarter of 2017.
CEO Succession
As announced on 12 December 2016, Chris Spencer, the Group's
Chief Executive, intends to retire by the end of 2017. A formal
search has begun for his successor and is making good early
progress.
Financial position
At its year end, the Group's net debt was GBP0.4m (2015:
GBP9.1m), having acquired Intrelate Limited, provider of mobile
social care software, for net cash consideration of GBP0.8m on 23
December 2016.
Notice of final results
The Group intends to announce its final results for the year
ended 31 December 2016 on Thursday, 16 March 2017.
Chris Spencer, CEO of EMIS Group, said:
"Our businesses have continued to deliver results in line with
our expectations, despite headwinds created by the NHS funding
gap.
"The NHS's process of planning to bridge its funding gap
continues to cause sluggishness in immediate procurements. However,
that planning emphasises the Group's unique ability to provide
software that helps bridge the gap.
"In light of the proactive operational steps we are taking,
together with our strong revenue visibility and solid order book
and pipeline, we remain confident of overcoming the headwinds and
delivering a positive performance in 2017 and beyond."
For further information, contact:
EMIS Group plc Tel: 0113 380 3000
Chris Spencer, CEO
Peter Southby, CFO
www.emisgroupplc.com
Numis Securities Limited (Nominated Adviser & Broker) Tel: 020 7260 1000
Oliver Hardy/Simon Willis/James Black
MHP Communications Tel: 020 3128 8540
Reg Hoare/Giles Robinson/Charlie Barker/Tess Harris
Notes to Editors
EMIS Group is the UK leader in connected healthcare software and
services. Its solutions are widely used across every major UK
healthcare setting from primary and community care, to high street
pharmacies, secondary care and specialist care services. EMIS Group
helps healthcare professionals, in over 10,000 organisations, share
vital information, facilitating better, more efficient healthcare
and supporting longer and healthier lives.
EMIS Group serves the following healthcare markets under the
EMIS Health brand:
-- Primary and Community Care, the UK leader in clinical
management systems for GPs and commissioners. EMIS Health products,
including the flagship EMIS Web, hold over 40 million patient
records and are used by more than 100,000 professionals in nearly
6,000 healthcare organisations.
-- Secondary and Specialist Care, a leading software provider to
NHS Acute Trusts and Boards, focused primarily on hospital
pharmacy, A&E (holding over 30 million patient records), and
patient administration systems as well as England's leading
provider of diabetic eye screening software, and other
ophthalmology-related solutions.
-- Community Pharmacy, the UK's single most used integrated
community pharmacy dispensary and retail system.
These markets are also supported by other EMIS Group
businesses:
-- under the Patient brand, the UK's leading independent
provider of patient-centric medical and well-being information and
related transactional services.
-- under the Egton brand, providing specialist ICT
infrastructure, hardware and engineering services, and non-clinical
software into health and social care.
-- under the EMIS Care brand, providing healthcare screening
programmes such as diabetic eye screening.
Information for investors, including analyst consensus
forecasts, can be found on the Group's website at
www.emisgroupplc.com/investors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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