Budgetary pressure in the NHS continues to fuel demand at EMIS (EMIS), whose information-sharing software is used by nearly 10,000 healthcare organisations to lower costs, boost efficiency and improve quality of care. The success of the product offering is reflected in 2014's adjusted operating profits, which were up by a quarter to £32.6m.
EMIS inked a landmark £11m contract in Gibraltar that will allow the territory's hospital staff, pharmacists and clinicians to electronically transmit patient records. Investors may also cheer a 19 per cent rise in adjusted operating profit at the core primary and community care division. That reflected rapid adoption of EMIS Web, which is now used in over 4,260 GP practices. EMIS also signed over £14m worth of community healthcare contracts.
Profits were flat at the smaller community pharmacy business. However, the roll out of new communication products, an app for ordering repeat prescriptions, and the development of software designed for 'supermarket' pharmacies, bodes well for future growth.
The fledgling secondary and specialist care division inked a deal with NHS Wales - worth up to £7.6m in the first seven years - to help manage unscheduled care across the country. During the year, the division expanded through deals to acquire clinical messaging group Indigo, and diabetic eye-screening specialist Medical Imaging, for around £10m in total.
Broker Numis Securities expects pre-tax profit of £35.6m, giving EPS of 44.3p (from £32.1m and 39.4p in 2014).
| EMIS (EMIS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 874p | MARKET VALUE: | £553m | |
| TOUCH: | 862-874p | 12-MONTH HIGH: | 900p | LOW: 556p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 174p* | NET DEBT: | 10% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 62 | 18.1 | 23.3 | 11.2 |
| 2011 | 73 | 21.4 | 28.7 | 12.4 |
| 2012 | 86 | 24.1 | 32.5 | 14.2 |
| 2013 | 106 | 24.6 | 32.6 | 16.0 |
| 2014 | 138 | 28.5 | 35.3 | 18.4 |
| % change | +30 | +16 | +8 | +15 |
Ex-div: 9 Apr Payment: 1 May *Includes intangible assets of £139m, or 220p a share | ||||
