Restatement of segmental reporting

RNS Number : 3082L

EMIS Group PLC

18 July 2017

EMIS Group plc

("EMIS Group" or "the Group")

Restatement of segmental reporting

EMIS Group plc (AIM: EMIS.L), the UK leader in connected healthcare software and services, today announces its restated segmental reporting.

Overview

Since 2013 the Group has presented its results split into three segments: Primary & Community Care; Community Pharmacy; and Secondary & Specialist Care. As previously announced, the Primary & Community Care and Secondary (Acute) Care businesses are now under common leadership, and Patient has been established as a separate entity. The directors therefore consider the following segmental split to represent better the Group's present structure, activities and the markets being served:

• Primary, Community & Acute Care

• Community Pharmacy

• Specialist & Care

• Patient

This split reflects how the business is managed and reported internally. Tables setting out the previous and new segmental reporting for the 2016 comparative periods are provided below. With the exception of the previous segmental numbers for the year ended 31 December 2016, which have been extracted from the audited 2016 Annual Report and Accounts, the numbers are unaudited.

Segmental reporting for half year

	Previous segmental				New segmental
	Six months ended				Six months ended
	30 June 2016				30 June 2016
	Primary & Community Care	Community Pharmacy	Secondary & Specialist Care	Total	Primary, Community & Acute Care	Community Pharmacy	Specialist & Care	Patient	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	48,983	10,348	19,339	78,670	60,256	10,348	7,046	1,020	78,670
Segmental operating profit as reported internally	14,745	2,214	1,469	18,428	15,298	2,214	369	547	18,428
Development costs capitalised	1,052	895	935	2,882	1,987	895	-	-	2,882
Amortisation of development costs	(2,315)	-	(646)	(2,961)	(2,961)	-	-	-	(2,961)
Amortisation of acquired intangible assets	(527)	(288)	(2,505)	(3,320)	(2,702)	(288)	(330)	-	(3,320)
Cost reduction programme	(412)	(107)	(1,633)	(2,152)	(1,894)	(107)	(151)	-	(2,152)
Segmental operating profit/(loss)	12,543	2,714	(2,380)	12,877	9,728	2,714	(112)	547	12,877
Group operating expenses				(736)					(736)
Operating profit				12,141					12,141
Net finance costs				(231)					(231)
Share of result of joint venture				271					271
Profit before taxation				12,181					12,181

Segmental reporting for full year

	Previous segmental				New segmental
	Year ended				Year ended
	31 December 2016				31 December 2016
	Primary & Community Care	Community Pharmacy	Secondary & Specialist Care	Total	Primary, Community & Acute Care	Community Pharmacy	Specialist & Care	Patient	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	99,615	21,425	37,672	158,712	120,565	21,425	14,163	2,559	158,712
Segmental operating profit as reported internally	32,202	4,876	3,292	40,370	33,792	4,876	213	1,489	40,370
Development costs capitalised	1,882	1,927	1,875	5,684	3,757	1,927	-	-	5,684
Amortisation of development costs	(4,497)	-	(1,516)	(6,013)	(6,013)	-	-	-	(6,013)
Amortisation of acquired intangible assets	(1,054)	(576)	(5,009)	(6,639)	(5,405)	(576)	(658)	-	(6,639)
Cost reduction programme	(1,162)	(140)	(2,328)	(3,630)	(2,707)	(140)	(783)	-	(3,630)
Impairment of goodwill	-	-	(4,616)	(4,616)	-	-	(4,616)	-	(4,616)
Segmental operating profit/(loss)	27,371	6,087	(8,302)	25,156	23,424	6,087	(5,844)	1,489	25,156
Group operating expenses				(1,617)					(1,617)
Operating profit				23,539					23,539
Net finance costs				(237)					(237)
Share of result of joint venture				499					499
Gain on sale of associate				1,532					1,532
Profit before taxation				25,333					25,333