EMIS Group |
Preparing for the next stage of growth |
H118 results |
Software & comp services |
4 September 2018 |
Share price performance
Business description
Next events
Analysts
EMIS Group is a research client of Edison Investment Research Limited |
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EMIS saw revenue growth from all divisions in H1, which helped to offset the additional costs incurred to strengthen service delivery. The company has worked hard to resolve customer support issues in primary care and is now focused on the IT Futures procurement bid in England. Investment in Patient is ongoing and the company expects to unveil its longer-term growth strategy at its capital markets day on 29 November. We have upgraded our revenue forecasts for FY18-20, but our adjusted operating profit and EPS forecasts are substantially unchanged.
Year end |
Revenue (£m) |
PBT* |
Dil EPS* |
EMIS adj. dil. EPS** (p) |
DPS |
P/E |
12/17 |
160.4 |
35.2 |
43.1 |
47.0 |
25.8 |
22.8 |
12/18e |
170.4 |
36.9 |
45.2 |
46.7 |
28.4 |
21.8 |
12/19e |
176.3 |
39.8 |
48.7 |
48.4 |
29.8 |
20.2 |
12/20e |
183.6 |
43.0 |
53.2 |
53.3 |
31.4 |
18.5 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **EMIS adjusted EPS – cash accounts for development costs and excludes exceptional items and amortisation of acquired intangibles.
Improving service delivery; preparing for growth
EMIS reported y-o-y revenue growth of 6.8% in H118, with growth from every division. Recurring revenues increased 4% y-o-y. Adjusted operating profit increased marginally over the period – investments in the Patient business combined with the increased headcount in Primary, Community and Acute Care to deal with customer support issues offset the upside from revenue growth in Community Pharmacy and Specialist and Care. EMIS noted that if the investment in Patient is excluded, adjusted operating profit increased 8% y-o-y. Net cash grew to £32.3m at the end of H118 from £14.0m at the end of FY17. The company announced an interim dividend of 14.2p (+10% y-o-y), ahead of our forecast.
Earnings forecasts substantially unchanged
We have increased our revenue forecasts to reflect the stronger than expected performance in H1: FY18e +2.8%, FY19e +2.7% and FY20e +2.9%. At the same time, we have raised our operating cost assumptions to reflect the increased investment in service delivery and the transition to IFRS16 in FY19. This results in minimal changes to adjusted operating profit and EMIS adjusted EPS. We have raised our dividend forecasts for all three years.
Valuation: IT Futures and growth strategy key to upside
EMIS is trading on 21.8x FY18e EPS and 20.2 FY19e EPS, at a 25% and 20% discount respectively to its peer group median. Although EMIS is more profitable than its peers, it lags in terms of revenue and earnings growth. Evidence of an acceleration of earnings growth will be key to share price upside – in the shorter term, this could include positive news on the English primary care procurement, and in the longer term, evidence that the investment in Patient is paying off as well as more information on the growth strategy. Strong cash generation underpins the 3% dividend yield.
Review of H118 results
Exhibit 1: EMIS half-year results
£m |
H118 |
H117 |
% y-o-y |
Revenues |
84.5 |
79.2 |
6.8% |
Gross margin (%) |
90.4% |
90.1% |
0.3% |
EBITDA |
24.7 |
23.5 |
5.1% |
EBITDA margin (%) |
29.2% |
29.7% |
(0.5%) |
Normalised EBIT |
16.4 |
16.7 |
(2.2%) |
EMIS adjusted EBIT |
17.6 |
17.5 |
0.6% |
Reported EBIT |
12.9 |
10.5 |
23.3% |
Normalised EBIT margin (%) |
19.4% |
21.1% |
(1.8%) |
EMIS adjusted EBIT margin (%) |
20.8% |
22.1% |
(1.3%) |
Reported EBIT margin (%) |
15.3% |
13.2% |
2.0% |
Net interest income |
(0.2) |
(0.2) |
2.7% |
Normalised PBT |
16.5 |
16.9 |
(2.4%) |
Reported PBT |
13.1 |
10.7 |
22.5% |
Tax |
(2.4) |
(2.1) |
18.5% |
Normalised net income after Minority Interests |
12.7 |
13.2 |
(3.4%) |
Reported net income after Minority Interests |
10.1 |
8.2 |
23.1% |
Normalised diluted EPS (p) |
20.2 |
20.9 |
(3.5%) |
EMIS adjusted diluted EPS (p) |
22.1 |
22.1 |
0.0% |
Reported basic EPS (p) |
16.1 |
13.1 |
22.9% |
Net cash |
32.3 |
10.5 |
208.2% |
Source: EMIS, Edison Investment Research
Exhibit 2: EMIS divisional half-yearly results
£m |
H118 |
H117 |
% y-o-y |
Revenues |
|||
Primary, Community and Acute Care (PCA) |
60.60 |
58.48 |
3.6% |
Community Pharmacy (CP) |
12.32 |
10.85 |
13.5% |
Specialist and Care (S&C) |
10.12 |
8.41 |
20.4% |
Patient |
1.50 |
1.45 |
3.9% |
Total |
84.55 |
79.19 |
6.8% |
Adjusted operating profit |
|
|
|
Primary, Community and Acute Care |
16.10 |
16.11 |
(0.0%) |
Community Pharmacy |
3.52 |
2.58 |
36.4% |
Specialist and Care |
0.38 |
(0.06) |
N/A |
Patient |
(1.67) |
(0.33) |
409.8% |
Central costs |
(0.71) |
(0.79) |
(10.2%) |
Total adjusted operating profit |
17.62 |
17.51 |
0.6% |
Reported operating profit |
|
|
|
Primary, Community and Acute Care |
11.36 |
9.76 |
16.3% |
Community Pharmacy |
2.92 |
2.21 |
32.3% |
Specialist and Care |
0.05 |
(0.39) |
N/A |
Patient |
(0.71) |
(0.33) |
116.5% |
Central costs |
(0.71) |
(0.79) |
(10.2%) |
Total reported operating profit |
12.91 |
10.47 |
23.3% |
Adjusted operating margin (%) |
|
|
|
Primary, Community and Acute Care |
26.6% |
27.5% |
(1.0%) |
Community Pharmacy |
28.5% |
23.8% |
4.8% |
Specialist and Care |
3.7% |
(0.7%) |
4.4% |
Patient |
(111.1%) |
(22.6%) |
(88.4%) |
Total adjusted operating margin (%) |
20.8% |
22.%1 |
(1.3%) |
Source: EMIS
EMIS reported y-o-y revenue growth of 6.8%, with growth from every division. Recurring revenues increased 4% y-o-y. Adjusted operating profit increased marginally over the period – investments in the Patient business combined with the increased headcount in PC&A to deal with customer support issues offset the upside from revenue growth in CP and S&C. The company noted that if the investment in Patient is excluded, adjusted operating profit increased 8% y-o-y.
The company incurred an effective tax rate of 19.1% in H118, resulting in flat EMIS adjusted diluted EPS on a year-on-year basis. The company ended H118 with net cash of £32.3m, up from £10.5m a year ago and £14.0m at the end of FY17. We note that the company has not yet finalised the amount it owes to NHS Digital (provided for last year as an £11.2m exceptional item). The company expects the amount to be covered by the charge already taken – we believe this is likely to be paid out in H218.
The company announced a 10% y-o-y increase in the interim dividend to 14.2p, ahead of our 13.4p forecast.
Business update
Update on short-term priorities
When we wrote after FY17 results, we highlighted that the company had three short-term priorities.
■
Resolve the primary care support issue
■
The shift from GPSoC to IT Futures
■
Upgrade EMIS Web
The company believes it has made good progress in resolving the customer support issue in Primary Care. Support and development headcount was increased to deal with the backlog of software issues and to make sure that on an ongoing basis, EMIS can continue to meet NHS Digital service level agreements, which it has done since 1 July. The company noted that as well as bringing Primary Care service levels up to the required level, it has also worked on completing outstanding commercial agreements in Community and Acute Care. It has invested in the leadership team for the wider group, with a focus on service delivery, with the current team of 46 including 18 new hires.
In late March, NHS Digital confirmed that the GPSoC framework would be extended until the end of 2019, to give it more time to develop the new IT Futures framework. EMIS has just received the first set of information from NHS Digital regarding requirements, and expects two more releases of information over the next few months. The company can have a dialogue with NHS Digital up until the end of this year. From the start of next year, the formal bid process begins, with each prospective technology supplier submitting their proposals to NHS Digital The company expects that the new framework will be agreed by next summer.
Alongside this, the company is looking to upgrade EMIS Web. This is somewhat of a chicken-and-egg scenario – the company will need to be sure that it can support all of the requirements of the new framework, but does not want to fix its technology roadmap before the full scope of requirements, and confirmation that it has been successful in being selected to go on the framework, have been received. It is currently talking to user groups in primary and community care to create a user-defined roadmap for the upgrades and is starting to develop an understanding of the requirements of IT Futures. Unlike the introduction of EMIS Web, upgrades are likely to be put through on a modular basis, and will not require EMIS staff on GP premises to effect the upgrades.
Long-term growth plan nearing completion
The company has indicated for several months that it is defining its long-term growth strategy and is working on its five-year product roadmap. It plans to unveil this at its capital markets day on 29 November. We assume that by then, the company will have a clearer picture of the requirements and opportunities thrown up by IT Futures.
Primary, Community and Acute Care: Investing in service delivery
PCA grew revenues 3.6% y-o-y while maintaining flat adjusted operating profit. Upside from the one-off Australian licence sale in Acute was offset by the costs of extra headcount brought in to improve the Primary Care support function.
In Primary Care, market share in the UK was maintained at 56%. This business continues to participate in the Scotland bid for primary care, where it currently has 54% market share and generates revenues of c £2.5m pa. Management noted that it has finite resources and depending on the requirements for both the new Scottish framework and IT Futures, it may have to make decision on whether it can continue to be involved in Scotland. The division’s Egton business is seeing growth in several areas: CCG (Clinical Commissioning Group)-funded NHS Wi-Fi, paper records digitisation services and automated arrivals kiosks.
Community Care won several new contracts, increasing market share by 1% to 18%. A new Windows-based mobile app was released in beta for “clinicians on the go”.
The Acute business increased its market share of the hospital pharmacy business by 3% to 32% (maintained No 2 position) and maintained its No 2 position and 19% market share in A&E. Despite its announced withdrawal from the Australian market, it signed a licence for legacy software in the Northern Territory in Australia and agreed a support and maintenance contract until the customer has switched to a new software provider.
Community Pharmacy: Revenue and profit growth
CP saw strong revenue growth of 13.5% y-o-y and adjusted operating profit growth of 36.4%.The business maintained its market share at 37%. The roll-out of ProScript Connect across the direct estate continued (2,277 customers now upgraded; 69% of direct estate) as well as across the Celesio independent estate (880 sites upgraded; 44% of estate). While the shift to ProScript Connect in itself does not increase revenues, the new software provides opportunities for EMIS to sell add-on modules and hardware.
Celesio has decided not to roll ProScript Connect out to its Lloyds Pharmacies estate – we had expected this to take EMIS’s market share up to nearly 50%. EMIS believes that this process may be restarted at some point in the future.
Specialist and Care: Back on track
New Care screening programmes that started in H117 contributed to the strong y-o-y revenue growth of 20.4% for S&C. The division was profitable at the adjusted operating profit level, increasing from a margin of 2.0% in H217 to 3.7% in H118.
Patient: Early days
The Patient business is still in investment mode. The business released a new version of Patient Access during H118 which is now being used by 2.2m patients. Management presented some usage statistics for Access, showing that in H118 monthly users increased 34% y-o-y, log-ins increased 21%, medical record views 49%, appointments booked 14% and repeat prescriptions 27%. As the company views Patient Access as the gateway to NHS services and third-party healthcare offerings, this bodes well for the development of the Patient business in the longer term.
The Patient.info part of the business saw average page views per month increase from 25m in H217 to 26m in H118, after the upgrade of the website in H217. Since the end of H118, a change in Google algorithms has reduced traffic to the site and this is likely to have a negative impact on advertising revenues in H218. We note that Patient.info has been affected by Google search algorithms changing in the past; in our view this is an ongoing cost of doing business when the majority of traffic is generated via Google.
Outlook and changes to forecasts
The company traded in line with expectations in H118 and management anticipates that it will meet the board’s expectations for the full year. We have made the following changes to our forecasts:
■
Revenues: we have reflected the one-off licence sale in Acute, and increased our forecasts for Specialist and Care, based on H1 performance. We have increased our Community Pharmacy forecast for FY18, reflecting the strong performance in H118, but we have removed any revenues from Lloyds pharmacies until the ProScript Connect roll-out is resumed.
■
Adjusted operating profit: we make minimal changes in FY18, assuming that increased headcount for support and development counteracts the increase in revenues. For FY19 and FY20, we have reflected the shift to IFRS 16, removing c £1.75m of operating lease expenditure and adding in £1.45m of depreciation and £0.3m in interest charges.
■
Dividend: we have increased this in FY18-20 to reflect the higher than expected interim dividend.
■
Net cash: we have added £8m to debt in FY19 reflecting the capitalisation of operating leases. We have also reflected the changes in HMRC deadlines for paying corporation tax. As a very large corporation (taxable profits of at least £20m per annum), EMIS currently pays tax for a given fiscal year in months seven and 10 of the current year and months one and four of the following year. For fiscal years starting on or after 1 April 2019 (ie FY20 for EMIS), this will shift to months 3, 6, 9 and 12 in the current year. Consequently. EMIS will end up paying 18 months of tax in FY20 before reverting to 12 months in FY21.
Exhibit 3: Changes to forecasts
£'000s |
FY18e |
FY18e |
Change |
y-o-y |
FY19e |
FY19e |
Change |
y-o-y |
FY20e |
FY20e |
Change |
y-o-y |
Old |
New |
Old |
New |
Old |
New |
|||||||
Revenues |
165,748 |
170,420 |
2.8% |
6.3% |
171,567 |
176,280 |
2.7% |
3.4% |
178,455 |
183,644 |
2.9% |
4.2% |
Normalised operating profit |
36,200 |
36,360 |
0.4% |
4.2% |
39,230 |
39,429 |
0.5% |
8.4% |
42,263 |
42,630 |
0.9% |
8.1% |
Reported operating profit |
28,482 |
28,642 |
0.6% |
169.2% |
31,512 |
31,711 |
0.6% |
10.7% |
34,784 |
35,151 |
1.1% |
10.8% |
EMIS adjusted operating profit |
37,156 |
37,336 |
0.5% |
-0.2% |
39,028 |
39,257 |
0.6% |
5.1% |
42,304 |
42,689 |
0.9% |
8.7% |
Normalised EPS (p) |
45.0 |
45.2 |
0.5% |
4.9% |
48.7 |
48.7 |
-0.1% |
7.7% |
53.1 |
53.2 |
0.3% |
9.4% |
Reported EPS (p) |
35.3 |
35.9 |
1.8% |
180.7% |
39.0 |
39.0 |
-0.1% |
8.6% |
43.6 |
43.8 |
0.4% |
12.2% |
EMIS adjusted EPS (p) |
46.5 |
46.7 |
0.5% |
-0.7% |
48.4 |
48.4 |
0.0% |
3.6% |
53.2 |
53.3 |
0.3% |
10.2% |
Net cash/(debt) |
17,682 |
17,796 |
0.6% |
27.2% |
32,072 |
24,693 |
-23.0% |
38.8% |
49,049 |
37,838 |
-22.9% |
53.2% |
Source: Edison Investment Research
Valuation
The EMIS share price has now recovered to the level it was at before the NHS Digital support issue was announced. However it continues to trade at a discount to peers on a P/E and EV/EBITDA basis for FY18e and FY19e. In terms of profitability, EMIS performs at the top end of the range; however, limited revenue growth means that its earnings growth lags its peers. With the Primary Care business support issues seemingly resolved, this removes one obstacle to share price recovery. Uncertainty over the outcome of IT Futures as well as the wait to hear the company’s long-term strategy are likely to weigh on the share price in the short term. A credible plan to drive growth above the low-to-mid single digits currently forecast is likely to be the first trigger for share price upside.
Exhibit 4: Peer group valuation multiples
|
EV/sales (x) |
P/E (x) |
EV/EBIT (x) |
EV/EBITDA (x) |
Dividend yield (%) |
|||||||||||
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
||
EMIS |
3.9 |
3.7 |
3.6 |
22.8 |
21.8 |
20.2 |
18.2 |
17.4 |
16.1 |
12.9 |
12.5 |
11.7 |
2.6% |
2.9% |
3.0% |
|
EMIS (cash R&D) |
3.9 |
3.7 |
3.6 |
20.9 |
21.0 |
20.3 |
17.0 |
17.0 |
16.2 |
|||||||
|
||||||||||||||||
AllScripts |
2.5 |
2.1 |
2.0 |
23.6 |
19.2 |
16.9 |
17.1 |
16.3 |
14.7 |
12.2 |
10.8 |
9.9 |
0.0% |
0.0% |
0.0% |
|
athenahealth |
5.1 |
4.7 |
4.2 |
62.1 |
35.8 |
31.7 |
35.9 |
27.3 |
23.9 |
20.7 |
17.2 |
15.1 |
0.0% |
0.0% |
0.0% |
|
Cegedim |
1.5 |
1.4 |
1.4 |
35.0 |
16.4 |
13.2 |
18.1 |
16.9 |
14.5 |
8.7 |
8.2 |
7.5 |
0.0% |
0.4% |
1.9% |
|
Cerner |
4.1 |
3.9 |
3.6 |
27.4 |
26.0 |
23.4 |
18.2 |
19.3 |
16.9 |
12.7 |
13.1 |
11.8 |
0.0% |
0.0% |
0.0% |
|
Craneware |
11.0 |
9.5 |
8.3 |
54.3 |
46.5 |
39.9 |
37.7 |
31.6 |
26.9 |
34.7 |
29.6 |
25.5 |
1.0% |
1.1% |
1.1% |
|
CompuGroup |
5.1 |
4.2 |
4.2 |
60.4 |
23.0 |
22.4 |
33.4 |
20.4 |
20.2 |
23.1 |
16.4 |
16.2 |
0.0% |
0.8% |
0.8% |
|
Nexus |
3.4 |
3.0 |
2.8 |
42.3 |
32.8 |
27.3 |
30.0 |
23.2 |
19.5 |
16.9 |
14.8 |
13.0 |
0.6% |
0.6% |
0.6% |
|
Quality Systems |
2.8 |
2.7 |
2.6 |
32.7 |
32.4 |
28.6 |
23.9 |
18.8 |
17.9 |
15.8 |
0.0% |
0.0% |
0.0% |
|||
|
||||||||||||||||
|
||||||||||||||||
Average |
4.4 |
3.9 |
3.6 |
42.2 |
29.0 |
25.4 |
26.8 |
22.1 |
19.5 |
18.5 |
16.0 |
14.4 |
0.2% |
0.4% |
0.6% |
|
Median |
3.7 |
3.4 |
3.2 |
38.6 |
29.2 |
25.3 |
27.0 |
20.4 |
19.5 |
17.8 |
15.6 |
14.0 |
0.0% |
0.2% |
0.3% |
|
EMIS vs peer median (%) |
(25) |
(20) |
(22) |
(18) |
||||||||||||
Source: Edison Investment Research, Bloomberg (as at 3 September)
Exhibit 5: Peer group financial metrics
|
|
Market |
EBIT margin (%) |
EBITDA margin (%) |
Rev growth (%) |
EPS growth (%) |
||||||||
Y/E |
cap (m) |
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
2017 |
2018e |
2019e |
|
EMIS |
31-Dec |
£622 |
21.8% |
21.3% |
22.4% |
30.7% |
29.8% |
30.7% |
1.0% |
6.3% |
3.4% |
(12.9)% |
4.9% |
7.7% |
EMIS (cash R&D) |
23.3% |
21.9% |
22.3% |
(4.4)% |
(0.7)% |
10.2% |
||||||||
|
|
|||||||||||||
AllScripts |
31-Dec |
$2,551 |
14.7% |
12.8% |
13.6% |
20.7% |
19.5% |
20.2% |
16.5% |
20.2% |
4.9% |
12.7% |
22.7% |
13.9% |
athenahealth |
31-Dec |
$6,233 |
14.3% |
17.0% |
17.7% |
24.8% |
27.1% |
28.1% |
12.7% |
10.5% |
9.9% |
30.5% |
73.5% |
12.7% |
Cegedim |
31-Dec |
€ 441 |
8.2% |
8.5% |
9.5% |
16.9% |
17.6% |
18.3% |
6.5% |
2.7% |
4.2% |
(160)% |
113.9% |
24.2% |
Cerner |
31-Dec |
$21,421 |
22.4% |
20.1% |
21.2% |
32.0% |
29.7% |
30.3% |
7.2% |
5.2% |
8.3% |
3.5% |
5.1% |
11.3% |
Craneware |
30-Jun |
£611 |
29.1% |
30.0% |
30.7% |
31.7% |
32.0% |
32.4% |
16.0% |
16.0% |
14.6% |
10.7% |
16.7% |
16.5% |
CompuGroup |
31-Dec |
€ 2,666 |
15.3% |
20.4% |
21.1% |
22.1% |
25.3% |
26.2% |
4.0% |
22.9% |
(2.3)% |
(12.6)% |
162% |
2.5% |
Nexus |
31-Dec |
€ 413 |
11.2% |
13.0% |
14.3% |
19.9% |
20.4% |
21.4% |
11.2% |
11.3% |
8.3% |
17.9% |
29.0% |
20.0% |
Quality Systems |
31-Mar |
$1,470 |
11.6% |
11.6% |
12.4% |
14.8% |
15.3% |
16.3% |
4.2% |
2.1% |
5.7% |
(14.6)% |
1.0% |
13.2% |
|
|
|||||||||||||
Average |
15.9% |
16.7% |
17.6% |
22.9% |
23.4% |
24.2% |
9.8% |
11.3% |
6.7% |
6.9% |
44.4% |
12.9% |
||
Median |
|
|
14.5% |
15.0% |
16.0% |
21.4% |
22.9% |
23.8% |
9.2% |
10.9% |
7.0% |
7.1% |
25.9% |
13.5% |
Source: Edison Investment Research, Bloomberg (as at 3 September)
Exhibit 6: Financial summary
£'000s |
2014 |
2015 |
2016 |
2017 |
2018e |
2019e |
2020e |
||
Year end 31 December |
|||||||||
PROFIT & LOSS |
|||||||||
Revenue |
|
|
137,639 |
155,898 |
158,712 |
160,354 |
170,420 |
176,280 |
183,644 |
Cost of Sales |
(12,782) |
(12,955) |
(14,151) |
(14,674) |
(15,934) |
(16,870) |
(17,832) |
||
Gross Profit |
124,857 |
142,943 |
144,561 |
145,680 |
154,486 |
159,410 |
165,812 |
||
EBITDA |
|
|
47,645 |
51,964 |
52,288 |
49,222 |
50,722 |
54,181 |
57,718 |
Operating Profit (before amort. of acq. intang, SBP and except.) |
34,787 |
37,123 |
38,897 |
34,895 |
36,360 |
39,429 |
42,630 |
||
EMIS adjusted operating profit |
|
|
32,639 |
36,553 |
38,753 |
37,406 |
37,336 |
39,257 |
42,689 |
Amortisation of acquired intangibles |
(6,269) |
(6,509) |
(6,639) |
(6,717) |
(6,718) |
(6,718) |
(6,479) |
||
Exceptionals |
873 |
(18,500) |
(6,714) |
(16,988) |
0 |
0 |
0 |
||
Share-based payments |
(270) |
(684) |
(473) |
(550) |
(1,000) |
(1,000) |
(1,000) |
||
Operating Profit |
29,121 |
11,430 |
25,071 |
10,640 |
28,642 |
31,711 |
35,151 |
||
Net Interest |
(543) |
(449) |
(237) |
(299) |
(50) |
(300) |
(300) |
||
Profit Before Tax (norm) |
|
|
34,206 |
36,625 |
39,159 |
35,192 |
36,946 |
39,765 |
42,966 |
Profit Before Tax (FRS 3) |
|
|
28,540 |
10,932 |
25,333 |
10,937 |
29,228 |
32,047 |
35,487 |
Tax |
(5,719) |
(5,558) |
(5,208) |
(2,074) |
(5,583) |
(6,409) |
(6,742) |
||
Profit After Tax (norm) |
27,617 |
29,801 |
32,175 |
27,989 |
29,557 |
31,812 |
34,802 |
||
Profit After Tax (FRS3) |
22,821 |
5,374 |
20,125 |
8,863 |
23,645 |
25,638 |
28,744 |
||
Average Number of Shares Outstanding (m) |
62.8 |
62.7 |
62.8 |
62.9 |
63.0 |
63.0 |
63.0 |
||
EPS - normalised & diluted (p) |
|
|
42.8 |
46.0 |
49.4 |
43.1 |
45.2 |
48.7 |
53.2 |
EPS - EMIS adjusted & diluted (p) |
|
|
39.4 |
45.1 |
49.2 |
47.0 |
46.7 |
48.4 |
53.3 |
EPS - FRS 3 (p) |
|
|
35.3 |
7.2 |
30.4 |
12.8 |
35.9 |
39.0 |
43.8 |
Dividend (p) |
18.4 |
21.2 |
23.4 |
25.8 |
28.4 |
29.8 |
31.4 |
||
Gross Margin (%) |
90.7% |
91.7% |
91.1% |
90.8% |
90.7% |
90.4% |
90.3% |
||
EBITDA Margin (%) |
34.6% |
33.3% |
32.9% |
30.7% |
29.8% |
30.7% |
31.4% |
||
Operating Margin (before GW and except.) (%) |
25.3% |
23.8% |
24.5% |
21.8% |
21.3% |
22.4% |
23.2% |
||
BALANCE SHEET |
|||||||||
Fixed Assets |
|
|
166,415 |
143,546 |
133,292 |
122,979 |
114,899 |
113,429 |
104,862 |
Intangible Assets |
139,397 |
121,383 |
110,953 |
100,844 |
91,764 |
83,844 |
75,927 |
||
Tangible Assets |
24,313 |
22,032 |
22,187 |
22,037 |
23,037 |
29,487 |
28,837 |
||
Other fixed assets |
2,705 |
131 |
152 |
98 |
98 |
98 |
98 |
||
Current Assets |
|
|
37,221 |
39,800 |
46,088 |
56,900 |
61,917 |
78,275 |
91,257 |
Stocks |
1,550 |
1,206 |
1,815 |
1,633 |
1,633 |
1,633 |
1,633 |
||
Debtors |
28,732 |
33,893 |
39,970 |
40,148 |
42,488 |
43,949 |
45,785 |
||
Cash |
6,939 |
4,701 |
4,303 |
13,991 |
17,796 |
32,693 |
43,838 |
||
Current Liabilities |
|
|
(67,665) |
(63,819) |
(56,158) |
(65,131) |
(57,329) |
(61,300) |
(63,778) |
Creditors |
(54,763) |
(51,960) |
(51,425) |
(65,131) |
(57,329) |
(59,300) |
(61,778) |
||
Short term borrowings |
(12,902) |
(11,859) |
(4,733) |
0 |
0 |
(2,000) |
(2,000) |
||
Long Term Liabilities |
|
|
(21,063) |
(12,481) |
(9,080) |
(6,734) |
(6,827) |
(13,109) |
(7,133) |
Long term borrowings |
(5,854) |
(1,951) |
0 |
0 |
0 |
(6,000) |
(4,000) |
||
Other long term liabilities |
(15,209) |
(10,530) |
(9,080) |
(6,734) |
(6,827) |
(7,109) |
(3,133) |
||
Net Assets |
|
|
114,908 |
107,046 |
114,142 |
108,014 |
112,659 |
117,294 |
125,208 |
CASH FLOW |
|||||||||
Operating Cash Flow |
|
|
44,856 |
42,711 |
43,657 |
48,834 |
40,580 |
54,691 |
58,359 |
Net Interest |
(445) |
(422) |
(324) |
(356) |
50 |
(200) |
(200) |
||
Tax |
(5,247) |
(6,896) |
(7,655) |
(8,139) |
(6,168) |
(7,671) |
(12,140) |
||
Capex |
(15,161) |
(14,058) |
(12,084) |
(11,342) |
(13,000) |
(13,000) |
(13,000) |
||
Acquisitions/disposals |
(9,959) |
(4,587) |
(1,790) |
329 |
0 |
0 |
0 |
||
Financing |
(1,578) |
492 |
881 |
571 |
(500) |
(500) |
(500) |
||
Dividends |
(10,792) |
(14,532) |
(14,006) |
(15,476) |
(17,157) |
(18,424) |
(19,373) |
||
Net Cash Flow |
1,674 |
2,708 |
8,679 |
14,421 |
3,805 |
14,897 |
13,146 |
||
Opening net debt/(cash) |
|
|
13,491 |
11,817 |
9,109 |
430 |
(13,991) |
(17,796) |
(24,693) |
HP finance leases initiated |
0 |
0 |
0 |
0 |
0 |
(8,000) |
0 |
||
Other |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
||
Closing net debt/(cash) |
|
|
11,817 |
9,109 |
430 |
(13,991) |
(17,796) |
(24,693) |
(37,838) |
Source: EMIS, Edison Investment Research
|
|
