Pre close trading update

RNS Number : 3050P

EMIS Group PLC

14 July 2010

 



Press Release                                                                                                        14 July 2010

EMIS Group plc

("EMIS" or "the Group")

Pre close trading update

EMIS Group plc (AIM: EMIS)  the UK's leading supplier of healthcare software to GPs, announces a pre close trading update prior to the publication of its results for the six months to 30 June 2010, expected to be announced on 14 September 2010.

Trading for the full year remains in line with management expectations.  Overall, turnover for the first half was £29.02 million (H1 2009: £28.9 million) pending the roll out of EMIS Web. Customers' discretionary spend on hardware and engineering services has been lower than anticipated but has been compensated for by increases in core annually recurring revenues, particularly those relating to the provision of hosting solutions.

During the period under review, management has been building the necessary infrastructure to enable the anticipated roll out of new and enhanced products and services.  As stated at the time of the IPO, 2010 has been and remains a year of focus on EMIS Web.  The "first of type" accreditation process remains on track for commencement of EMIS Web rollout this Autumn.

EMIS Inc, the Group's Canadian subsidiary, responsible for less than 1% of Group revenues in 2009, has not made the progress expected during the period and the Group is reviewing certain strategic options regarding this business.

The Group continues to be highly cash generative with cash of £16.8 million against structured bank debt of £6.4 million at 30 June 2010.

The Directors welcome the recently published NHS White Paper proposing that responsibility for decision-making and commissioning of NHS services should be put in the hands of GPs.  A more plural system of IT is also planned based on compatibility between different systems. 

EMIS Web is already at the heart of the transformational change being implemented by current GP commissioning groups and, together with the Healthcare Gateway collaboration between EMIS and INPS, will provide the tools to connect NHS systems.  The Directors continue to believe that the Group is well placed to benefit from the anticipated changes in the NHS.

Sean Riddell, EMIS CEO, said:

"EMIS continues to trade in line with management expectations and the Group remains well placed to benefit from the anticipated changes in the NHS.  Healthcare professionals' ongoing requirement to securely share patient data in a time efficient, cost effective manner is fundamental to improving NHS frontline services and we remain on track with our strategy of delivering cross organisational healthcare systems through the implementation of EMIS Web and the formation of Healthcare Gateway Limited."

For further information, contact:

EMIS Group plc                                                            Tel: [phone]

Sean Riddell, CEO

www.emis-online.com 

Evolution Securities Limited               

Leeds                                                                           Tel: [phone]

Joanne Lake / Peter Steel

London                                                                        Tel: [phone]

Adam Lloyd / Adam Strachan                            

Hogarth                                                                        Tel: [phone]

Sarah MacLeod / James White

Notes to Editors

EMIS Group is the UK's leading supplier of software and related services to GP practices, with approximately 39 million patient records in the UK held on EMIS' software.

Established in 1987, EMIS' core activities include software licensing and support, hardware support and maintenance services, hardware sales, third party software sales and training services.

The Group's software includes all of the functionality specified in NHS accreditation standards for GPs, including holding the patient's cradle to grave electronic healthcare record, practice appointment booking systems and consultation and intelligent prescribing modules.

EMIS Web represents the next generation of clinical software systems and the Directors believe it has the potential to transform the delivery of healthcare by enabling GPs and other healthcare practitioners to connect with each other and securely share access to a patient's cradle to grave electronic health record.

EMIS' shares were listed on AIM under the trading symbol EMIS.L following a successful fundraising in March 2010.

 

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