EMIS Group

LN: EMIS

£671.1m market cap

1060p 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 has been selected for the GP IT Futures framework, securing it the opportunity to continue to sell its core clinical GP software in England. The framework will replace the existing GP Systems of Choice framework from 1 January 2020. Two types of suppliers have been selected: foundation, to provide the core clinical functionality required by GPs, and catalogue, to provide additional system capabilities. EMIS will provide both foundation and catalogue solutions. Despite the change from per practice to per patient charging, management expects to receive broadly similar payments. In our view, the risk of increased competition in the core systems market should be weighed against the potential to generate incremental sales of catalogue solutions.

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 24.6 13.7
2018A 149.7 48.9 33.4 40.3 26.3 13.4
2019E 158.0 53.9 39.9 51.5 20.6 12.4
2020E 165.3 56.7 43.1 55.3 19.2 11.5
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 14/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 28.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 7.7 (5.7) 18.2
Relative* 6.5 (8.4) 13.5
52-week high/low 1242.0p/864.0p
*% relative to local index
Key management
Andy Thorburn CEO
Peter Southby CFO

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