The smooth operation of NHS infrastructure has never been more crucial to public health – which puts software provider Emis (EMIS) in a strong position at the heart of its ecosystem. The group, which secured three new NHS framework positions last year, supplies the national body with software that supports integrated care technology.
The group’s recurring revenue, which accounts for almost 80 per cent of total sales, increased through 2019 and, given the critical nature of the product offering, is unlikely to be affected by the virus outbreak. Chief financial officer Peter Southby said there will probably be a delay to new business revenue – although the company has not seen an impact so far.
Emis streamlined its business over the course of last year. It disposed of its Specialist & Care business, as well as exiting several smaller legacy products. It acquired Pinnacle Health Partnership and Pinnacle Systems Management Ltd, thereby gaining access to PharmOutcomes, a management solution used by community pharmacy – where the EMIS Health division currently holds the number two market share at 21 per cent.
N+1 Singer forecasts adjusted pre-tax profits of £37.8m and EPS of 48.7p, against £39.5m and 51.1p in 2019.
| EMIS (EMIS) | ||||
| ORD PRICE: | 774p | MARKET VALUE: | £ 490m | |
| TOUCH: | 750-820p | 12-MONTH HIGH: | 1,262p | LOW: 750p |
| DIVIDEND YIELD: | 4.0% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 165p* | NET CASH: | £31.1m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 156 | 10.9 | 7.2 | 21.2 |
| 2016 | 159 | 25.3 | 30.4 | 23.4 |
| 2017 | 160 | 10.9 | 12.8 | 25.8 |
| 2018** | 150 | 28.1 | 34.7 | 28.4 |
| 2019 | 160 | 27.1 | 35.3 | 31.2 |
| % change | +7 | -4 | +2 | +10 |
| Ex-div: | 09 Apr | |||
| Payment: | 11 May | |||
| *Includes intangible assets of £82.3m, or 130p a share **Re-presented to show the results of the Specialist & Care business as a discontinued operation, following its disposal on 2 April 2019 | ||||
