EMIS offsets lower NHS spending with smaller wins

Clinicians in more than 10,000 organisations use EMIS's software to share patient information, raising efficiency and improving treatment. Recurring revenues rose 6 per cent to £64m, and now make up four-fifths of total turnover. However, that partly reflected the disappointing number of NHS procurement contracts awarded in the period. In response, management has cut headcount and expects to realise £3m in cost savings for the full year.

The primary care segment inked seven contracts worth more than £3.5m in total, expanding its share of the child, community and mental health market from 12 per cent to 14 per cent. Moreover, management expects the community pharmacy division's deal with wholesaler AAH Pharmaceuticals last December to boost its market share from 36 to almost 50 per cent over the next 18 months. The secondary care business landed a patient administration system contract in Northampton, and snagged a spot on a £15m framework to implement electronic medicine management in hospitals. And the specialist and care arm secured a trio of significant eye-screening contracts in Lancashire and West Yorkshire.

Broker Numis expects adjusted pre-tax profits of £39.3m for the full year, giving EPS of 48.7p (up from £36.1m and 45.1p in 2015).