EMIS Group

LN: EMIS

£666m market cap

1052p last close

EMIS is a clinical software supplier to the primary, community and acute care markets in the UK and provides software to the community pharmacy market. Its Patient business provides medical and wellbeing information as well as transactional services to patients.

Investment summary

EMIS reported growth in revenues (+7%), adjusted operating profit (+8%) and adjusted EPS (+11%) in H119. Management restructured the business during H1 to reflect the two key customer groups for EMIS products and, with the disposal of the Specialist & Care division, streamlined the product portfolio. Development of EMIS-X continues on track, with the first application based on the platform launched within the Patient Access app. We view the share price as likely to tread water until the outcome of the GP IT Futures procurement process is announced in the next few months.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 160.4 49.2 35.2 43.1 24.4 13.6
2018A 149.7 48.9 33.4 40.3 26.1 13.3
2019E 158.0 53.9 39.9 51.5 20.4 12.3
2020E 165.3 56.7 43.1 55.3 19.0 11.4
Last updated on 19/09/2019
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 19/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 28.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (5.7) (10.2) 1.9
Relative* (8.3) (10.3) 2.2
52-week high/low 1242.0p/864.0p
*% relative to local index
Key management
Andy Thorburn CEO
Peter Southby CFO

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