EMIS

LN: EMIS

£601.5m market cap

950p last close

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

Investment summary

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. 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. The company is now focused fully on the development and roll-out of the EMIS-X platform. We maintain our forecasts pending FY18 results on 20 March.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 158.7 52.3 39.2 49.4 19.2 13.7
2017A 160.4 49.2 35.2 43.1 22.0 12.2
2018E 170.4 50.7 36.9 45.4 20.9 14.7
2019E 176.8 53.8 39.3 49.8 19.1 11.0
Last updated on 18/02/2019
Industry outlook

EMIS is the dominant software supplier to the UK GP market, with a greater than 50% market share. It has a strong position in mental and community health, A&E, acute care, specialist care (including diabetic retinopathy screening services) and pharmacies. The hosted EMIS Web solution enables EMIS to sell its products to a wider NHS audience. This fits well with the government’s strategy to promote greater interoperability between NHS departments.

Last updated on 18/02/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 4.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.8 4.4 30.1
Relative* 0.5 1.5 32.1
52-week high/low 1050.0p/720.0p
*% relative to local index
Key management
Andy Thorburn CEO
Peter Southby CFO