As well as providing software for high street pharmacies, EMIS (EMIS) also provides the software and associated support services that help doctors to share patient information within the NHS. So a push to integrate services and increase efficiency levels within the health service has kept EMIS busy during the first half.
Indeed, EMIS consolidated its market leading position further by increasing its GP market share from 51.2 per cent at end-2012 to 52.4 per cent. The number of GP practises that signed up to use the group’s EMIS Web healthcare IT system rose from 1,635 to 2,580 in the half, with a further 948 unfulfilled orders. Penetration into the high street pharmacy market has continued as well, with the proportion of community pharmacies now using the group’s RX Systems’ ProScript software having risen marginally from 34.8 per cent to 34.9 per cent in the half.
However, sales growth wasn't matched by profit growth as EMIS employed more staff to cope with the rate of expansion. The cash pile fell by £2.9m in the period, too - although it remains at a healthy £14.8m.
Broker Numis Securities expects full-year pre-tax profit of £25m, giving EPS of 33.8p, rising to £27.4m and 36.1p in 2014 (from £22.8m/30.5p in 2012).
| EMIS (EMIS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 745p | MARKET VALUE: | £437m | |
| TOUCH: | 710-745p | 12-MONTH HIGH: | 980p | LOW: 595p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 112p* | NET CASH: | £14.8m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 42.3 | 12.1 | 16.3 | 7.10 |
| 2013 | 47.1 | 12.0 | 15.6 | 8.00 |
| % change | +11 | -1 | -4 | +13 |
Ex-div: 25 Sep Payment: 31 Oct *Includes intangible assets of £54m, or 92p a share | ||||
