Listed healthtech firm reports improved performance across all divisions

Healthtech and software business EMIS Group has seen profits and revenues rise in a financial year when it executed a recovery plan after failings were discovered on an NHS Digital contract.

The Leeds-headquartered listed firm this morning published its annual results to December 31 2018, which show that pre-tax profits rose to £29.1m from £10.9m in the previous year. Its revenues rose 6%, from £160m to £170m.

The firm’s 2018 accounts show re-adjustments due to the NHS contracts issues. It paid £11.2m for the NHS legacy issues, which hit its pre-tax profits in 2017. It then found that this sum was lower and returned £1.7m back into pre-tax profits in 2018. It has also paid more than £5m restructuring costs in 2017.

Speaking to TheBusinessDesk.com this morning, Group CEO Andy Thorburn said: “In a competitive environment, we are holding our own and that’s encouraging. The whole digital world for healthcare is extremely exciting. The competitive nature of the sector is good because the customers and the individuals benefit from that competition.”

EMIS Group started the 2018 financial year with issues relating to failings on its NHS contract. Thorburn said the team had worked hard to overcome the issue and that “the customer – NHS Digital – was great.”

He added: “We settled with the agreed figure and got our performance back on track.”

Thorburn said that the firm’s market share had risen and he was especially pleased that all divisions of the business had performed well. He added that the focus for the coming year for EMIS Group was to deliver or exceed market expectations, deliver results for new and existing customers and  invest in further technology.

He added: “I am genuinely pleased with the results for 2018. We recovered well from the start of last year and have built momentum. We are energised and focused on delivering results and building new technology. There is lots more to do, we are not complacent.”

EMIS Group said it leading position in the UK GP market was maintained, growing market share by 1% to 57% (2017: 56%) and that it was well positioned in the pre-procurement phase of the GP IT Futures bid for primary care. 

In the year, it was awarded a place on the NHS National Services Scotland framework and made investments in its new service management solution, ServiceNow.

Its community market share increased to 20% (2017: 17%), maintaining number two position in the market and continued momentum in its acute division, maintaining number two market position in hospital pharmacy and moving to joint market leadership in A&E. 

Its EMIS Health Community Pharmacy reported a “strong financial performance” with its joint market leadership position maintained at 37% market share (2017: 37%).  More than 95% of its direct customer estate upgraded to its next generation product. 

The group’s Specialist & Care division saw double-digit revenue growth and “significantly improved profitability. “

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