EMIS Group

LN: EMIS

£672.4m market cap

1062p last close

EMIS is a software supplier with two divisions. EMIS Health supplies integrated care technology to the NHS, including primary, community, acute and social care. EMIS Enterprise is a B2B software provider to the UK healthcare market, including medicines management, partner businesses, patient-facing services and blockchain.

Investment summary

EMIS confirmed that H120 trading was in line with expectations. As previously flagged, new business has been more difficult to sign, but the company is seeing some signs of recovery and as long as new business gradually improves through H2, EMIS anticipates meeting FY20 expectations. With a strong net cash position and access to debt funding, EMIS is well funded to manage through the current disruption. We maintain our forecasts.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 149.7 48.9 33.4 40.4 26.3 13.4
2019A 159.5 55.6 41.0 53.5 19.9 13.3
2020E 159.8 53.3 39.9 51.2 20.7 12.7
2021E 169.8 56.8 43.7 56.0 19.0 11.7
Industry outlook

EMIS is the leading software supplier to the UK GP market, with a greater than 50% market share. It has a strong position in community pharmacies, community health, A&E and hospital pharmacies. The EMIS-X platform is being developed to promote greater interoperability between NHS departments, in line with the NHS Long Term Strategy.

Last updated on 13/07/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 39.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.3 4.1 (9.9)
Relative* 0.1 (1.7) 7.9
52-week high/low 1240.0p/813.0p
*% relative to local index
Key management
Andy Thorburn CEO
Peter Southby CFO

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