News Column

EMIS Group Hikes Interim Dividend 15% On Confident Outlook

September 4, 2014

Hana Stewart-Smith

LONDON (Alliance News) - EMIS Group PLC Friday raised its interim dividend as it saw profit rise in the half year to end-June, and said it expects its improved performance to continue into the second half of the year.

The healthcare software and services company proposed an interim dividend of 9.2 pence, up 15% from 8.0 pence in the previous year.

It reported a pretax profit of GBP12.6 million in the first half of 2014, up from GBP12.0 million in the same period the previous year, as revenue rose to GBP66.4 million from GBP47.1 million, although this was partly offset by higher operating expenses and a GBP5.3 million amortisation charge relating to software purchased externally.

In the company's Primary & Community Care business, growth was boosted by the roll-out of its EMIS Web product for General Practitioners. Maintenance and software support revenues rose to GBP15.5 million from GBP6.6 million, boosted by acquisitions made in 2013, and EMIS's inclusion under a new GP System of Choice framework agreement in the UK.

EMIS acquired Ascribe Ltd and Digital Healthcare Ltd in the second half of 2013, and said that both acquisitions had made positive contributions, with further contract wins expected to boost their performance in the remainder of the year.

Its Secondary and Specialist Care business continued to build momentum over the period, the company said, and remains on track to deliver results for its first full year in line with expectations.

EMIS said that it continues to increasingly engage in the re-tendering of former National Programme contracts in Community Child and Mental Health and secondary care, and is also preparing for new growth opportunities in primary care. The company said that these opportunities will open up to EMIS in 2016 as the protection formerly provided by the National Programme falls away.

The company said it continues to trade well and in line with expectations. Its confidence for the second half of 2014 is underpinned by increasing demand from the UK National Health Service for integrated care, strong revenue visibility, and robust contract pipeline.

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Source: Alliance News

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