Emis's (EMIS) recurring revenues edged up by 1 per cent – constituting just over three-quarters of the top line growth – helping it to deliver an 8 per cent rise in adjusted operating profits during the first half.
That was despite adjusted operating profits at Emis health – which generates sales by providing software to NHS organisations – sinking 3.6 per cent, following investment in development costs for the new software platform ‘EMIS-X’. Thankfully, Emis enterprise saw profits rise by over a fifth to £8.1m, buoyed by various commercial licence deals.
Emis is aiming for mid-to-high single-digit revenue growth and margins “towards” 30 per cent in the mid-term. Near-term, management’s full-year outlook has not changed. Cash from operations did decline by 15 per cent to £29.8m, but this stemmed from timing changes in working capital and a strong comparative. Chief executive Andy Thorburn says that a couple of transactions towards the end of the period have been billed, but not yet paid and he is confident of having a good year-end cash position.
Numis expects adjusted EPS of 50.8p for 2019 (up from 45p last year).
|ORD PRICE:||1,112p||MARKET VALUE:||£704m|
|TOUCH:||1,112-1,118p||12-MONTH HIGH:||1,262p||LOW: 853p|
|DIVIDEND YIELD:||2.7%||PE RATIO:||30|
|NET ASSET VALUE:||160p*||NET CASH:||£26.7m|
|Half-year to 30 Jun||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
|*Includes intangible assets of £85.5m or 135p a share|