TIDMEMIS
RNS Number : 3072L
EMIS Group PLC
18 July 2017
18 July 2017
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 services, today announces a trading update
for the six months ended 30 June 2017.
Overview
Trading for the half year has been in line with the Board's
expectations with revenue slightly ahead of the comparative period
as the Group continued to benefit from growing recurring revenue,
strong market shares and good momentum in its order books and
pipelines. This was achieved despite the uncertainty created by the
general election and the ongoing slower rate of contract awards in
larger NHS procurements. Since the appointment of Andy Thorburn as
Chief Executive Officer ("CEO") on 1 May 2017, the previously
announced internal reorganisation programme has been expanded, with
the cost-savings from the programme providing benefit from the
second half onwards. Overall, the Board's expectations for the full
year remain unchanged.
Divisional review
As previously announced, the Group has changed its segmental
reporting to reflect its evolving business structures. A separate
announcement this morning contains the details of the changes and
restated comparative figures.
In Primary, Community & Acute Care, the Group's leading
primary care market share has been maintained. In Northern Ireland,
implementation of EMIS Web for primary care is progressing well and
in Scotland the process for the procurement of EMIS Web has now
begun. The Group's Child, Community and Mental Health (CCMH) market
share grew with two further contract wins in the period. The acute
care market was again constrained by NHS funding pressure, which is
set to continue.
As well as maintaining a leading market share and a pipeline of
opportunities in Community Pharmacy, the roll out of ProScript
Connect, the Group's next generation pharmacy dispensary management
product, has continued in the independent estate, with roll out
into Celesio sites expected to start in the second half of the
year.
Specialist & Care performed in line with expectations,
successfully implementing in the period five new diabetic
eye-screening contracts which had been won in 2016. As part of its
turnaround plan, the business also gave 12 months' notice to
withdraw from one unprofitable screening contract which will
improve profitability from the second half of 2018.
In Patient, the business plan to grow the publishing/media
business and to expand into e-commerce platform clinical services
has begun to be executed. The business is on track to deliver the
key milestones of fully-responsive, multi-device user-experiences
for both Patient.info and Patient Access by the end of the year and
will be achieving this at a lower cost than previously guided as a
result of securing more cost-effective development channels.
Financial position
The Group's net cash at 30 June 2017 was GBP10.5m (31 December
2016: net debt of GBP0.4m). The Group has successfully concluded
its scheduled refinancing, securing a new revolving credit facility
of up to GBP60m with Barclays and Lloyds for an initial three year
period.
Notice of half year results
The Group intends to announce its results for the half year
ended 30 June 2017 on 1 September 2017.
Andy Thorburn, CEO of EMIS Group, said:
"EMIS Group has continued to deliver results in line with our
expectations. In my early weeks in the business I have been
encouraged by the dedication of our people to delivering ever
better digital technology and patient information. I believe this
commitment and the existing strong market shares provide a firm
base for the Group to continue to generate good levels of growth in
the years ahead, despite the challenging funding environment in the
NHS. The Board therefore 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
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
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, community & acute care, to
high street pharmacies 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, Community & Acute Care, as the UK leader in
clinical management systems for healthcare providers 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.
-- Community Pharmacy, with the UK's single most used integrated
community pharmacy and retail system.
-- Specialist Care, as England's leading provider of diabetic eye screening software and other ophthalmology-related solutions.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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