Vigorous demand, growing market share and multiple contract wins underpinned these strong first-half figures from EMIS (EMIS). The healthcare software group - which enables GPs, pharmacists and other healthcare providers to safely store and share patients' information - posted a 16 per cent rise in adjusted operating profit to £17m. Investors sent its shares up 6 per cent on results day.
London's Royal Free Hospital showcased the value of the group's EMIS Web solution. Urgent care physicians there are now using medical records to pinpoint the tenth of patients that require emergency aid - they provide basic health advice to the rest or direct them elsewhere. That helps explain why EMIS's software is used by 5,121 GP practices - 54 per cent of the total - and why management has rolled out EMIS Web across England, and has Northern Ireland in its sights.
The community, children's and mental health business inked £6.3m in contracts this year, and management hopes to pounce on NHS trusts in northern England as they exit the national procurement framework. Meanwhile, the community pharmacy division plans to pilot a new version of its ProScript software later this year. And the secondary and specialist care segment is fielding more than £70m in tenders for its diabetic eye-screening business.
Broker N+1 Singer expects EPS of 45.4p, rising to 51.6p in 2016 (42p in 2014).
| EMIS (EMIS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 972p | MARKET VALUE: | £615m | |
| TOUCH: | 967-972p | 12-MONTH HIGH: | 1,000p | LOW: 705p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 183p* | NET CASH: | £1.3m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 66.4 | 12.6 | 15.2 | 9.2 |
| 2015 | 77.8 | 13.6 | 16.6 | 10.6 |
| % change | +17 | +7 | +9 | +15 |
Ex-div: 24 Sep Payment: 30 Oct *Includes intangible assets of £137m, or 216p a share | ||||
