Healthcare software firm can ‘weather the storm’
Listed Leeds-based healthcare software and systems business EMIS has seen its total revenues climb to £159.5m, up 7% from £149.7m, in its newly released final results for the year ended 31 December 2019.
Adjusted operating profit was up 9% to £39.3m from £35.9m, while latest pre-tax profits were £27,071, compared to £28,115 for the previous period.
The company has reported an overall “robust business model”, with 78% recurring revenue and a strong balance sheet.
It also says it is well positioned to deal with the short-term market uncertainties created by Coronavirus, and has no delivery risks associated with its recurring revenue.
Highlights during the year included being appointed to the NHS National Services Scotland (NSS) and the NHS GP IT Futures framework and Digital Buying Catalogue in England.
And EMIS completed the roll-out of ProScript Connect, bringing all community pharmacy customers onto the same system.
Andy Thorburn, chief executive officer of EMIS Group, said: “I am encouraged by the performance of the Group in 2019, during which we delivered considerable operational progress across the organisation.
“This includes the completion of our internal transition and organisational plans that were underway throughout the year, which have successfully improved our operational efficiency, service and responsiveness to customers as planned.
“We’ve moved some of our resources to new areas of work and reduced management layers in the company.
“And we introduced new systems and hired developers and testers to develop more products. Transition is difficult, but we have an excellent team who have handled it well.
“EMIS Group has a robust business model, with 78% recurring revenue and a strong balance sheet, and is well positioned to weather the short-term market uncertainties created by coronavirus.
“We have no delivery risks associated with our recurring revenue. We’re focused on looking after our EMIS Group colleagues and supporting our customers as they take care of the population through the coronavirus challenges.”
He added the business was run on a prudent, conservative basis, making it well placed to respond to future disruption.
“Overall our key focus today is to support our customers – we’re mission critical for the NHS,” he added.
Peter Southby, CFO, said: “We’re in a very solid position with nearly 80% of our revenues being recurring.
“While we may see some impact on our non-recurring revenue – the business we have to go out and win each year -we have more than £30m in cash on the balance sheet with no debt, so we’re in a good place to support the NHS at its time of need.”
