Back in December, we learnt that healthcare software group Emis (EMIS) had reached a settlement agreement with NHS Digital over issues linked to its service levels and reporting obligations to GPs surgeries announced in January 2018. In the event, the final charge taken was actually lower than the £11.2m figure provided within 2017’s full-year results. Thus Emis’s latest numbers included a “provision release” of £1.7m – sending statutory operating profits soaring by 170 per cent to £28.7m. Unsurprisingly, the shares were marked up in reply, supported by news that sales had improved across all core businesses, and that recurring revenues rose by 5 per cent to £141m.
Under the Emis Health umbrella, the primary, community and acute care segment saw a 3.5 per cent rise in sales to £122m. Elsewhere, its share of the community market rose from 17 per cent to 20 per cent. It won 90 new community deals, including new software installations in clinical services and community training packages. And all of its 18 outstanding legacy contracts here were completed during the year.
House broker Numis expects adjusted EPS of 52.1p for 2019, against 47.3p in 2018.
| EMIS (EMIS) | ||||
| ORD PRICE: | 1,036p | MARKET VALUE: | £ 656m | |
| TOUCH: | 1,034-1,038p | 12-MONTH HIGH: | 1,074p | LOW: 775p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 162p* | NET CASH: | £15.6m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 138 | 28.5 | 35.3 | 18.4 |
| 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 | 170 | 29.2 | 36.1 | 28.4 |
| % change | +6 | +167 | +182 | +10 |
| Ex-div: | 11 Apr | |||
| Payment: | 13 May | |||
| *Includes intangible assets of £96.8m, or 153p a share | ||||
