Restatement of segmental reporting

RNS Number : 5938F

EMIS Group PLC

16 July 2019

 

16 July 2019

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 systems, today announces its restated segmental reporting.

Overview

The Group has previously presented its results split into four segments: Primary, Community & Acute Care; Community Pharmacy; Specialist & Care; and Patient.

As set out at the Group's November 2018 Capital Markets event and further to the Group's disposal of the non-core Specialist & Care segment, completed in April 2019, the business is now organised into two segments, EMIS Health and EMIS Enterprise, reflecting the Group's activities and the markets being served. Internal financial information is reported on this basis to the Group's chief operating decision-maker, the Group Board.

The EMIS Health segment comprises revenues generated from NHS organisations. The EMIS Enterprise segment comprises revenues predominantly from private sector sources, including the results of the Community Pharmacy and Patient segments, which were previously reported separately.

Each segment has its own management team, with Suzy Foster as Chief Executive Officer (CEO) for EMIS Health since 1 April 2019 and Ian Taylor as CEO for EMIS Enterprise. Both Suzy and Ian report directly to Andy Thorburn, CEO of EMIS Group plc.

Tables setting out the previous and new segmental reporting for the 2018 half year and full year comparative periods are set out below. With the exception of the previous segmental numbers for the year ended 31 December 2018, which have been extracted from the audited 2018 Annual Report and Accounts, the numbers are unaudited. The tables exclude the Group's discontinued Specialist & Care segment.

Segmental reporting for half year 2018

	Previous segmental six months ended 30 June 2018				New segmental six months ended 30 June 2018
	Primary,
	Community	Community			EMIS	EMIS
	& Acute Care	Pharmacy	Patient	Total	Health	Enterprise	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	60,604	12,319	1,501	74,424	48,641	25,783	74,424
Segmental operating profit / (loss) as reported internally	16,100	3,517	(1,667)	17,950	11,235	6,715	17,950
Development costs capitalised	1,720	-	1,083	2,803	1,282	1,521	2,803
Amortisation of development costs	(3,724)	(306)	(124)	(4,154)	(3,267)	(887)	(4,154)
Amortisation of acquired intangible assets	(2,741)	(288)	-	(3,029)	(1,602)	(1,427)	(3,029)
Segmental operating profit / (loss)	11,355	2,923	(708)	13,570	7,648	5,922	13,570
Group operating expenses^				(713)			(1,140)
Operating profit				12,857			12,430
Net finance costs				(154)			(149)
Share of result of joint venture				318			318
Profit before taxation from continuing operations				13,021			12,599

Segmental reporting for full year 2018

	Previous segmental year ended 31 December 2018				New segmental year ended 31 December 2018
	Primary,
	Community	Community			EMIS	EMIS
	& Acute Care	Pharmacy	Patient	Total	Health	Enterprise	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	121,670	25,044	2,996	149,710	99,302	50,408	149,710
Segmental operating profit / (loss) as reported internally	33,609	7,575	(3,203)	37,981	25,197	12,784	37,981
Development costs capitalised	3,589	-	2,193	5,782	2,968	2,814	5,782
Amortisation of development costs	(8,546)	(613)	(288)	(9,447)	(7,287)	(2,160)	(9,447)
Amortisation of acquired intangible assets	(5,626)	(576)	-	(6,202)	(3,348)	(2,854)	(6,202)
Service level reporting charges	1,657	-	-	1,657	1,657	-	1,657
Segmental operating profit / (loss)	24,683	6,386	(1,298)	29,771	19,187	10,584	29,771
Group operating expenses^				(1,484)			(2,091)
Operating profit				28,287			27,680
Net finance costs				(185)			(180)
Share of result of joint venture				615			615
Profit before taxation from continuing operations				28,717			28,115

^ Group operating expenses have increased as a result of central costs previously allocated to the Specialist & Care segment that have not been reallocated on the new segmental basis.

For further information, contact:

EMIS Group plc                                                                                Tel: [phone]

Andy Thorburn, CEO

Peter Southby, CFO

www.emisgroupplc.com

Numis Securities Limited (Nominated Adviser & Broker)           Tel: [phone]

Oliver Hardy/Simon Willis/James Black

MHP Communications                                                                     Tel: [phone]

Reg Hoare/Giles Robinson/Patrick Hanrahan/Florence Mayo

 

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