Strong recurring revenues at listed healthcare software provider
Leeds-headquartered EMIS Group has reported revenues of £159.5m in 2020 in its final results for the year ended 31 December 2020 – the same figure as for 2019.
But the company, which offers connected healthcare software and systems, says its recurring revenue rose 4% over the same period from £125m to £130m.
EMIS made pre-tax profits of £36.9m (2019: £27m) while its adjusted operating profit for the year, was £39.3m (2019: £39.3m), including £0.7m from the company’s previously reported acquisition of Pinnacle Healthcare.
£28m worth of new business was delivered in the period, with EMIS recording a strong cash position of £53m (2019: £31.1m).
The business says its current trading is in line with expectations, with a good pipeline of opportunities.
And it expects to return to growth in 2021, adding that new product developments should result in opportunities for even higher growth levels in 2022 and beyond.
Among the 2020 highlights reported by the firm were its Pinnacle product becoming the system used by healthcare professionals throughout England delivering COVID-19 vaccinations, to capture and share essential immunisation information.
This has been deployed in almost 1,400 vaccination centres and has supported 14.9m vaccinations as of 1 March 2021.
EMIS reports significantly increased usage of services provided by its Patient Access app and website, driven by increased demand for digital routes to healthcare during the pandemic.
It has supported community pharmacies to play a greater role in alleviating pressure on the NHS, through managing and delivering repeat prescriptions and offering digital consultations
Andy Thorburn, the company’s chief executive officer, said: “While the numbers have been broadly flat for us, that’s not been the real story of 2020.
“The front line response to the pandemic has been outstanding and I am proud of all my colleagues who have stepped up and helped our NHS heroes in every possible way, from supporting the clinicians delivering patient care on the front line to playing a vital role in England’s vaccination programme.
“We’re really pleased to have been able to help during such complex times.
“While Covid-19 presented unprecedented challenges to the sector, it has also been a catalyst for change, leading to a more rapid adoption of digital healthcare that is here to stay.
“We believe EMIS Group is well positioned to respond to the challenges our customers face, with a combination of our innovative technology, leading market shares and strong recurring revenues that enable us to invest with confidence.
“Our product development investment means our current and emerging software is well suited to meet the evolving requirements of the healthcare sector.
“Post-Covid we see new growth accelerating, with new revenue opportunities in the NHS and the life science sector.”
He added the nature of the company’s work meant it was able to see the pandemic on the horizon earlier than other businesses, so had more time to get ready.
“Preparation was key,” he said. “We brought our team together at the start to get our systems in order to make sure we had the right functionality in place to support our customers. We’re strategically important, so we have to make sure our systems keep running.
“We probably moved to home working earlier than most other companies in the UK.
“99% of our staff are still based from home and it has worked extremely well. We have 28 volunteers who are mental health first aiders and they, along with our HR team, have done a brilliant job of supporting colleagues who are working from home.
“The adaptability of our team has just been outstanding.”
Thorburn said the business remains at the heart of helping to deliver the vital COVID-19 immunisation and testing programmes, and is determined to continue providing an excellent service.
