Trading update

RNS Number : 3647K

EMIS Group PLC

14 July 2011

 



Press Release                                                                                                        14 July 2011

EMIS Group plc

("EMIS Group" or "the Group")

Trading update

EMIS Group plc (AIM: EMIS), the UK's leading supplier of healthcare software to GPs and a major software supplier to high street pharmacists, announces a trading update for the six months ended 30 June 2011. The Group expects to issue its results for the period on 02 September 2011.

Trading for the half year was in line with management's expectations. 

During the first half, the roll-out of EMIS Web progressed as expected and, at the period end, there were 9,089  EMIS Web GP and extended primary care users with circa 28.3 million patient records. There were also 1,130 orders for EMIS Web, 2,091 practices in the Familiarisation Service and 150 installed GP practices. The Group also continued to build the infrastructure necessary to support the further development and increased roll-out of EMIS Web, which will continue in the second half, along with expansion of the senior management team to address the opportunities within our marketplace.

The Group's UK market penetration remains strong with 53.4%^* of GP practices and 30%^* of high street pharmacies. As previously announced, Scotland has been a key area of growth for EMIS GP systems, in relation to both orders and installations, including over 100 GP practices serving over 1.1 million patients in NHS Greater Glasgow and Clyde, that have now migrated their systems to EMIS.

Rx, the Group's pharmacy system provider, has continued to grow its market share, principally through the ongoing roll-out of ProScript Link whilst Egton, the Group's engineering services division, has started to work with pharmacies introduced by Rx. This will enable the Group to benefit from efficiencies and cost savings.

As announced on 26 April 2011, the board took a decision to exit the Canadian market and to sell the majority of the Group's remaining assets in Canada to QHR Technologies Inc. That sale has now been completed in all material respects and all costs, in line with the previous announcement, will be expensed in the current financial year.

Our involvement in developing and implementing an electronic health information system for the Australian Defence Force as part of the JEDHI project is continuing according to plan.

The Group continues to be highly cash generative with cash of £18.0 million and bank debt of £5.2 million at 30 June 2011 (H1 2010: cash £16.8 million; bank debt £6.4 million).

The Directors welcome moves within the NHS to putresponsibility for decision-making and commissioning of services in the hands of GPs and other clinicians, as the NHS progresses from a centralised approach to IT to a more plural one, allowing improved healthcare through interoperability between different systems. 

EMIS Web is a key element in the transformational changes being implemented by GP commissioning groups, providing the means to connect NHS systems. The Directors therefore remain confident that the Group is well placed to benefit from the ongoing changes in the NHS.

Sean Riddell, EMIS Group CEO, said:

"EMIS Group continues to trade in line with management expectations and remains well placed to assist healthcare professionals to share patient data securely in a time efficient and cost effective manner. Our strategy of delivering cross-organisational healthcare systems, through EMIS Web, Healthcare Gateway and Rx Systems, remains fully in line with NHS strategy for the future. In summary, the outlook for the year as a whole remains positive and we are confident of the Group's long term growth prospects."

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]

Alex Garton                              

MHP Communications                                           

Reg Hoare/James White                                               Tel: [phone]

Notes to Editors

EMIS Group is the UK's leading supplier of software and related services to GP practices and a major supplier to high street pharmacies. 53.4%^* of GP Practices in the UK have an EMIS system, and EMIS GP software holds approximately 39 million^* patient records. In addition, 30%^* of high street pharmacies have an Rx Systems application.

Group's 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 as well as a full range of high street pharmacy software products and related services.

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.

Established in 1987, EMIS Group' shares were listed on AIM under the trading symbol EMIS.L following a successful fundraising in March 2010.

(^*EMIS  data estimated based on company records showing customers installed or ordered (by contract or letter of intent) as at 30th June 2011. Rx Systems data is based on company records to the 30th June 2011 and latest available data from The National Pharmaceutical Association as at March 2010.)

 

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