EMIS — FY18 trading in line

EMIS Group (AIM: EMIS)

Last close As at 27/03/2024

GBP19.20

0.00 (0.00%)

Market capitalisation

GBP1,232m

More on this equity

Research: TMT

EMIS — FY18 trading in line

EMIS finished FY18 in a better position than it started the year. Trading was in line with expectations and the customer support issue uncovered a year ago has been resolved. The company has a strong cash position and can now focus fully on the development and roll-out of the EMIS-X platform. We maintain our forecasts pending FY18 results on 20 March.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

EMIS

FY18 trading in line

Trading update

Software & comp services

24 January 2019

Price

920p

Market cap

£583m

Net cash (£m) at end FY18

15.6

Shares in issue

63.3m

Free float

98%

Code

EMIS

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

Business description

EMIS is a clinical software supplier to the primary, community and acute care markets in the UK, and provides software to the community pharmacy and specialist ophthalmology markets. Its Patient business provides medical and wellbeing information as well as transactional services to patients.

Analyst

Katherine Thompson

+44 (0)20 3077 5730

EMIS is a research client of Edison Investment Research Limited

EMIS finished FY18 in a better position than it started the year. Trading was in line with expectations and the customer support issue uncovered a year ago has been resolved. The company has a strong cash position and can now focus fully on the development and roll-out of the EMIS-X platform. We maintain our forecasts pending FY18 results on 20 March.

Year end

Revenue (£m)

PBT*
(£m)

Dil EPS*
(p)

EMIS adj. dil. EPS** (p)

DPS
(p)

P/E
(x)

12/17

160.4

35.2

43.1

47.0

25.8

21.4

12/18e

170.4

36.9

45.4

47.0

28.4

20.2

12/19e

176.8

39.3

49.8

49.5

29.8

18.5

12/20e

184.1

42.5

54.5

54.6

31.4

16.9

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **EMIS adjusted EPS – cash accounts for development costs, and excludes exceptional items and amortisation of acquired intangibles.

EMIS’s year-end trading update confirmed that trading for FY18 was in line with management’s expectations, with year-on-year revenue growth (our forecast +6.3%). Net cash at year-end stood at £15.6m, after paying the one-off penalty to NHS Digital (for which we had already provided). This was ahead of our £4.2m net cash forecast.

In Primary, Community & Acute Care EMIS maintained its market share in primary care, won new contracts in community care and grew acute care revenues. Community Pharmacy continued with the roll-out of ProScript Connect, which is now live in over 80% of its estate. Specialist & Care saw revenue and profit growth. We maintain our forecasts pending FY18 results on 20 March.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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