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EMIS offsets lower NHS spending with smaller wins

The connected-healthcare specialist was awarded fewer large contracts in the period

Post-referendum uncertainty and sluggish NHS spending weighed on EMIS (EMIS) in the first half of 2016. But a raft of smaller contracts, coupled with a previous acquisition, pushed adjusted operating profits up 5 per cent to £17.7m.

IC TIP: Hold at 1015p

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.

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