Emis reports half-year profit boost

Emis Group has reported a 27% increase in its half-year profits for 2014, attributed in part to the earnings boost from its acquisition of other companies.

Emis has released its unaudited financial results for the first six months of 2014, saying its trading is in line with management’s expectations.

The company’s total revenue was £66.4m, up 41% from £47.1m in the first half of 2013.

Its adjusted operating profit was £14.6m, an increase of 27% from £11.6m in the first half of 2013.

The results announcement comes roughly one year after its purchase of pharmacy and e-prescribing software supplier Ascribe for £57.5m and diabetic retinopathy screening company Digital Healthcare for £3.1m.

Emis Group chief executive Chris Spencer said the company has made a “strong start” to the year, moving towards completion of the Emis Web roll-out for GPs in England and demonstrating the closer integration of the group’s products and services.

Emis Web is now live in 3,751 English and Welsh GP practices, up from 3,327 at the end of 2013, with its primary care market share broadly unchanged.

It is also building momentum in community, children’s and mental health with contract wins totalling more than £6m and a “full pipeline” of work.

The company said it is growing its market share in the community pharmacy sector, having started development of its next generation community pharmacy software and launched new software enabling pharmacies to view patients’ electronic GP records.

In secondary and specialist care, the company said its integration of Digital Healthcare and Ascribe is continuing to progress as expected, with significant “earnings enhancement” in the first full six-month period since the companies were acquired.

It has also secured further contract wins in hospitals, and says it has a “strong pipeline of further opportunities”.

Emis Group also bought electronic messaging and order communications supplier Indigo 4 Systems Limited in July for £3.2m.

The company said it expects its improved profit performance to continue into the second half of the year, with growth opportunities in the primary care, secondary care and community, children’s and mental health markets.

“The NHS's increasing demand for integrated care gives us considerable confidence, supported further by our strong revenue visibility and robust contract pipeline,” Spencer said.