‘Strong performance’ in tough circumstances at healthcare software firm
Leeds-headquartered EMIS Group has reported total revenue of £78.1m for the six months ended 30 June 2020, down 2% from £79.8m during the equivalent period last year.
Recurring revenue grew by 5% to £63.5m (2019 H1: £60.2m), representing 81% (2019 H1: 76%) of the Group’s total revenue.
EMIS, a listed business which specialises in connected healthcare software and systems, also reported pre-tax profits of £17.7m, compared to £12m the year before. Adjusted operating profit dropped by 2% to £17.8m (2019 H1: £18.2m).
Cash generated from operations was £36.6m (2019 H1: £29.8m), with the improvement driven by working capital including £7.3m of VAT payments deferred until 2021.
Andy Thorburn, chief executive officer of EMIS Group, said: “The Group’s financial performance in the first half of the year was excellent considering the backdrop and level of uncertainty caused by COVID-19.
“Our robust business model was key to this, as was our commitment to doing the right thing by our customers at all times.
“Our cash position and strong balance sheet mean we are very well placed to continue our strategy and invest for growth.
“It’s a good set of numbers considering the backdrop. Many CEOs would like to be in as fortunate a position as we are, with good levels of recurring revenues. I think our team has done an amazing job of supporting each other and supporting our customers.
“We continued to execute our strategic roadmap and are delighted to announce the launch of Explorer, the first product from our new EXA suite ahead of schedule, in quarter four of 2020.
“Explorer, as part of our EXA suite, is focused on providing insights into healthcare at a scale and speed that will improve patient outcomes at both regional and national level. Initial customer feedback has been excellent.”
EMIS says it was able to transition its teams to homeworking ahead of lockdown in both the UK and India.
None of its staff were furloughed and no redundancies took place during lockdown.
Thorburn added: “It was a privilege for us to support the NHS front line during the first wave of the pandemic.
“Our NHS colleagues are doing an outstanding job looking after the nation and we thank them for their service and commitment.
“I’d also like to thank the entire EMIS Group team who did everything we could have asked of them and more during a very busy lockdown period for the Group.”
He said at the height of the pandemic in April and May EMIS successfully handled a “tremendous” level of demand from the NHS and from community pharmacy customers, dealing with 75 to 100 calls a day.
“Our role was to make sure our products and services remained available, especially during the really tough time in April and May,” he said.
“We reacted really well because we saw the pandemic coming early. We always keep an eye out for these kind of things and we adapted our systems appropriately.
“It’s a much calmer environment now and we’re starting to see demand for non Covid related services come back which is encouraging.
“We still have projects to win and to deliver and we’re confident we will meet expectations for the year.”