EMIS pleased with first-half ahead of takeover by UnitedHealth
By Josh White
Date: Wednesday 28 Sep 2022
(Sharecast News) - Connected healthcare software company EMIS Group reported a 5% improvement in total first-half revenue on Wednesday, to £87.3m, as its recurring revenue grew 9% to £71.8m.
The AIM-traded firm said adjusted operating profit was 12% firmer year-on-year in the six months ended 30 June, at £22.4m, while reported operating profit slipped 7% to £15.3m.
Its adjusted operating margin expanded by 170 basis points to 25.7%, while its reported margin was 200 basis points lower at 17.5%.
Adjusted cash generated from operations jumped 84% to £27.4m, and reported cash generated from operations was ahead 67% at £28.4m, with the company reporting net cash at period end of £53.6m, up 12% over the prior year period.
Adjusted earnings per share were 14% higher at 29.1p, while reported earnings per share slipped 7% to 19.4p.
The board kept the interim dividend unchanged year-on-year, at 17.6p per share.
On the operational front, the board said the group was continuing to perform "well", with good visibility and high levels of recurring revenue.
It reported "continued strength" in its relationships with NHS customers, alongside accelerating investment in its technology and the "cloud refresh strategy" in EMIS Health.
The company said it was seeing "good performance" in EMIS Enterprise, including from Pinnacle and the first-half acquisitions of Edenbridge and FourteenFish.
Strong underlying organic growth was being driven by increased momentum in EMIS-X Analytics, the board said.
Looking ahead, EMIS said it was focussed on delivering consistent revenue growth in line with its business plan.
The board said the firm remained "well-placed" for growth, with a technology strategy that was in alignment with NHS policy.
Finally, the company noted that on 17 June, the terms of a recommended all cash offer under which a wholly‐owned subsidiary of UnitedHealth Group would acquire EMIS was announced, to be implemented by means of a court-sanctioned scheme of arrangement.
The board said the process was moving forwards "well", subject to court approvals and the satisfaction or waiver of the remaining conditions.
"It has been a positive first half of the year with good performance from the business," said chief executive officer Andy Thorburn.
"Our focus remains on developing our technology strategy in alignment with healthcare policy and market trends, most notably in the areas of connected care and data and analytics.
"Our strategy will address the needs of the healthcare sector as it moves further into the digital future and we look forward with confidence."
At 1504 BST, shares in EMIS Group were up 0.12% at 1,892.21p.
Reporting by Josh White at Sharecast.com.
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