EMIS Group — FY22 results in line

EMIS Group (AIM: EMIS)

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Research: TMT

EMIS Group — FY22 results in line

EMIS reported FY22 results that were in line with management expectations. Revenue increased 4% y-o-y, adjusted operating profit increased 10% and adjusted EPS grew 10%. The company closed the year with net cash of £45.9m, reduced from the prior year due to several bolt-on acquisitions in the year. A final dividend of 21.1p was declared for a full year dividend of 38.7p.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

EMIS Group

FY22 results in line

FY22 results

Software and comp services

30 May 2023

Price

1,346p

Market cap

£848m

Net cash (£m) at end FY22

45.9

Shares in issue

63.0m

Free float

98%

Code

EMIS

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(17.5)

(28.1)

3.1

Rel (local)

(15.7)

(25.9)

3.7

52-week high/low

1,910p

1,292p

Business description

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

Next events

AGM

29 June

Analyst

Katherine Thompson

+44 (0)20 3077 5700

For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with EMIS Group.

EMIS Group is a research client of Edison Investment Research Limited

EMIS reported FY22 results that were in line with management expectations. Revenue increased 4% y-o-y, adjusted operating profit increased 10% and adjusted EPS grew 10%. The company closed the year with net cash of £45.9m, reduced from the prior year due to several bolt-on acquisitions in the year. A final dividend of 21.1p was declared for a full year dividend of 38.7p.

Year end

Revenue (£m)

PBT*
(£m)

Diluted EPS* (p)

EMIS adjusted diluted EPS** (p)

DPS
(p)

P/E
(x)

12/19

159.5

41.0

53.5

51.1

31.2

25.2

12/20

159.5

43.4

56.4

50.4

32.0

23.9

12/21

168.2

43.5

55.0

55.5

35.2

24.5

12/22

175.4

48.1

60.9

61.2

38.7

22.1

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.

EPS and dividend growth of 10% for FY22

EMIS reported revenue of £175.4m for FY22, up 4.2% y-o-y (+1.6% organic) and adjusted operating profit of £47.7m (+9.5% y-o-y, 27.2% margin). EMIS Health's planned reduction of its lower-margin partner resale business acted as a drag on revenues but improved profitability. EMIS Enterprise saw strong revenue growth and margin expansion. The technology transformation programme incurred exceptional costs of £8.2m with the ongoing bid for EMIS generating exceptional costs of £4.6m. A 10% increase in adjusted diluted EPS supports a 10% increase in the full year dividend.

Several bolt-on deals reduced cash

In FY22, EMIS acquired Edenbridge for up to £10m (£5.5m paid to date) and FourteenFish for £14.7m (net of cash acquired). The company also bought out the remaining 50% stake in the Healthcare Gateway for £14m in cash (£12.6m net of cash acquired). Combined, these deals contributed £4.4m to revenue and £1.7m to adjusted operating profit in FY22. Total acquisition-related payments of £35m resulted in net cash declining by 28% to £45.9m.

Takeover progress: Targeting completion by Q124

On 17 June 2022, the boards of Bordeaux (Bidco) and EMIS announced that they had reached agreement on the terms of a recommended all-cash offer pursuant to which Bordeaux, an affiliate of Optum UK and a wholly owned subsidiary of UnitedHealth Group, will acquire the entire issued and to be issued ordinary share capital of EMIS for a price of 1,925p per share. The Competition and Markets Authority (CMA) recently completed its Phase 1 investigation in which it identified concerns that the deal could affect competition. It rejected the remedies proposed by Bidco to remedy these and has now opened a Phase 2 investigation. Bidco and EMIS intend to proceed with the investigation and EMIS anticipates the deal closing in Q423 or Q124. The court has approved the extension of the long-stop date from 30 June 2023 to 30 June 2024.

Review of FY22 results

EMIS reported revenue growth of 4.2% for FY22 (1.6% organic). Recurring revenue (82% of total revenue) increased 6.3% y-o-y. Adjusted operating profit increased 9.5% over the same period (5.7% organic) resulting in operating margin expansion of 1.3pp to 27.2%. Reported operating profit includes exceptional costs of £12.8m (see below for detail) and profit before tax includes a gain on revaluation of a previously held interest in a joint venture of £10.7m (more detail below). Adjusted diluted EPS increased 10.3% y-o-y. The company announced a final dividend of 21.1p, which combined with the interim dividend of 17.6p results in a full year dividend of 38.7p, up 9.9% y-o-y.

Exhibit 1: FY22 results highlights

£'000s

FY21

FY22

y-o-y

Revenues

168,226

175,373

4.2%

Normalised operating profit

43,246

47,631

10.1%

Normalised operating margin

25.7%

27.2%

1.5%

Reported operating profit

35,785

27,746

(22.5%)

EMIS adjusted operating profit

43,533

47,686

9.5%

Adjusted operating margin

25.9%

27.2%

1.3%

Normalised diluted EPS – p

55.0

60.9

10.7%

Reported basic EPS – p

46.2

52.5

13.8%

EMIS adjusted diluted EPS – p

55.5

61.2

10.3%

Dividend per share – p

35.2

38.7

9.9%

Net cash/(debt)

64,042

45,918

(28.3%)

Source: EMIS

Net cash declined 28% y-o-y, mainly due to acquisition-related payments. Net cash from operating activities totalled £46.2m (FY22: £42.5m) and was after £10.2m in cash costs for exceptional items. Capex totalled £7.1m (FY22: £6.4m), payments relating to acquisitions totalled £34.6m and dividend payments totalled £22.2m.

High level of exceptional costs

The company charged a total of £12.8m in exceptional costs in FY22. Costs relating to the planned takeover by UnitedHealth made up £4.6m of this. The remaining £8.2m related to the technology transformation programme that is designed to update EMIS Web. The EMIS Web modernisation programme is focused on improving the user experience and customer retention.

Acquisition-related activity in FY22

The impact of acquisitions on FY22 results came from four deals:

Edenbridge Healthcare: acquired for £4m in cash on 14 January 2022. Paid out £1.5m in contingent consideration with a further £4.5m on the balance sheet at year-end (£1.5m short-term, £3.0m long-term).

FourteenFish: acquired on 1 March 2022 for £15.6m in cash or £14.4m net of acquired cash. Paid out contingent consideration of £0.3m in the year.

Healthcare Gateway: EMIS set up a 50/50 joint venture with INPS (number three GP software supplier in the UK, owned by Cegedim) back in 2010. The JV’s technology is known as the medical interoperability gateway (MIG) and is designed to help connect real-time patient data between different healthcare settings. In October 2022, EMIS acquired INPS’s 50% stake for £14m (or £12.4m net of cash acquired) and reported a gain on revaluation of its JV stake of £10.7m (treated as an exceptional item within PBT but not included in operating profit).

Pinnacle: acquired in 2020. Made the final contingent consideration payment of £2m.

Divisional performance

Exhibit 2: Divisional revenue and operating profit

£m

FY21

FY22

y-o-y

Revenues

EMIS Health

108.0

103.9

(3.7%)

EMIS Enterprise

60.3

71.5

18.6%

Total

168.2

175.4

4.2%

Adjusted operating profit

EMIS Health

26.3

26.4

0.2%

EMIS Enterprise

18.9

22.9

20.8%

Central costs

(1.7)

(1.6)

(9.6%)

Total adjusted operating profit

43.5

47.7

9.5%

Reported operating profit

EMIS Health

22.1

23.9

8.5%

EMIS Enterprise

15.4

18.1

17.4%

Central costs

(1.7)

(1.6)

(9.6%)

Total reported operating profit

35.8

40.5

13.2%

Adjusted operating margin

EMIS Health

24.4%

25.4%

1.0%

EMIS Enterprise

31.4%

32.0%

0.6%

Total adjusted operating margin

25.9%

27.2%

1.3%

Reported operating margin

EMIS Health

20.4%

23.0%

2.6%

EMIS Enterprise

25.6%

25.4%

(0.3%)

Total reported operating margin

21.3%

23.1%

1.8%

Source: EMIS

EMIS Health

Revenue from EMIS Health declined 3.7% y-o-y, mainly due to the company phasing out lower-margin resale partner business. Adjusted operating profit was essentially flat over the year with the adjusted operating margin increasing by 1pp to 25.4%.

EMIS maintained its GP market share of 58% in the UK. In acute A&E software and community, it maintained its number two positions, with market share of 19% (FY21: 21%) and 19% (FY21: 20%) respectively.

In Wales and Northern Ireland, EMIS is working with the relevant national healthcare organisations to align its software development plans with their requirements. The business withdrew from the Scottish GP IT Re-provisioning Framework during FY22, deciding to prioritise the EMIS Web modernisation programme over bespoke development for the framework. It will continue to support customers in Scotland.

The business was appointed to the NHS Digital Tech Innovation Framework (TIF) and its technology roadmap remains aligned with NHS England strategy. NHS England is currently forming plans for the Digital Primary Care Framework (DPCF), which will be the successor to the GP IT Futures framework in England.

EMIS Enterprise

Revenue from EMIS Enterprise increased 18.6% y-o-y, partly due to contributions from the Edenbridge and FourteenFish acquisitions as well as from strong growth in analytics and the Pinnacle business. Adjusted operating profit increased 20.8% with the adjusted operating margin increasing by 0.6pp to 32.0%.

The business maintained its lead in the community pharmacy market with 39% market share and its number two position in hospital pharmacy with a 33% share (FY21: 36%).

Registered users of Patient Access increased to 16.1m from 14.0m last year. Users booked 1.3m GP appointments (FY21: 1.5m) and ordered 19m prescriptions (FY21: 22m). Patient.info reported 67m unique users viewing 135m pages in FY22 (FY21: 96m users, 187m page views). The company believes that FY21 numbers were boosted by heightened interest in health information during the pandemic.

The number of companies partnered with EMIS increased to 175 from 148 a year ago.

Two new EMIS-X Analytics products were launched in the year: Recruit, which provides a technological link to support efficient recruitment into clinical trials, and Pathway, which uses clinical intelligence to identify cohorts of patients at risk of long-term health conditions. Pathway is currently being used to facilitate the NHS England hepatitis C virus elimination programme.


Exhibit 3: Financial summary

£'000s

2018

2019

2020

2021

2022

Year end 31 December

PROFIT & LOSS

Revenue

 

 

149,710

159,507

159,453

168,226

175,373

Cost of Sales

(14,236)

(15,407)

(20,335)

(16,255)

(12,901)

Gross Profit

135,474

144,100

139,118

151,971

162,472

EBITDA

 

 

48,919

55,632

53,536

54,707

59,381

Operating Profit (before amort. of acq. intang, SBP and except.)

32,991

40,794

43,020

43,246

47,631

EMIS adjusted operating profit

 

 

35,890

39,273

39,266

43,533

47,686

Amortisation of acquired intangibles

(6,202)

(7,317)

(6,824)

(5,673)

(5,190)

Exceptionals

1,657

(5,360)

1,802

0

(12,762)

Share-based payments

(766)

(1,290)

(1,440)

(1,788)

(1,933)

Operating Profit

27,680

26,827

36,558

35,785

27,746

Net Interest

(180)

(498)

(501)

(426)

(51)

Profit Before Tax (norm)

 

 

33,426

41,038

43,377

43,547

48,113

Profit Before Tax (FRS 3)

 

 

28,115

27,071

36,915

36,086

38,934

Tax

(5,355)

(5,022)

(6,794)

(7,010)

(5,764)

Profit After Tax (norm)

26,447

33,697

35,658

35,065

38,972

Profit After Tax (FRS3)

22,760

22,049

30,121

29,076

33,170

Average Number of Shares Outstanding (m)

63.0

62.9

62.9

63.0

63.1

EPS - normalised & diluted (p)

 

 

40.4

53.5

56.4

55.0

60.9

EPS - EMIS adjusted & diluted (p)

 

 

45.0

51.1

50.4

55.5

61.2

EPS - FRS 3 (p)

 

 

36.1

36.0

48.1

46.2

52.5

Dividend (p)

28.4

31.2

32.0

35.2

38.7

Gross Margin (%)

90.5%

90.3%

87.2%

90.3%

92.6%

EBITDA Margin (%)

32.7%

34.9%

33.6%

32.5%

33.9%

Operating Margin (before GW and except.) (%)

22.0%

25.6%

27.0%

25.7%

27.2%

BALANCE SHEET

Fixed Assets

 

 

117,920

101,089

105,518

95,584

139,190

Intangible Assets

96,807

82,345

85,295

76,535

124,188

Tangible Assets

21,000

18,399

19,870

18,694

14,803

Other fixed assets

113

345

353

355

199

Current Assets

 

 

53,107

67,278

87,170

101,359

85,579

Stocks

1,264

657

613

530

518

Debtors

36,223

33,047

29,993

32,057

38,889

Cash

15,620

31,099

53,008

64,042

45,918

Current Liabilities

 

 

(60,169)

(55,700)

(63,370)

(61,665)

(70,722)

Creditors

(60,169)

(55,060)

(62,380)

(60,762)

(70,017)

Lease liabilities

0

(640)

(990)

(903)

(705)

Short term borrowings

0

0

0

0

0

Long Term Liabilities

 

 

(8,199)

(8,469)

(10,180)

(6,801)

(11,576)

Long term borrowings

0

0

0

0

0

Lease liabilities

0

(3,294)

(5,891)

(5,013)

(3,660)

Other long term liabilities

(8,199)

(5,175)

(4,289)

(1,788)

(7,916)

Net Assets

 

 

102,659

104,198

119,138

128,477

142,471

CASH FLOW

Operating Cash Flow

 

 

49,873

50,059

64,138

50,059

48,813

Net Interest

(214)

(93)

(54)

(64)

55

Tax

(5,830)

(4,466)

(11,684)

(7,483)

(2,659)

Capex

(12,767)

(13,119)

(9,491)

(6,405)

(7,106)

Acquisitions/disposals

(9,269)

5,152

(953)

(1,990)

(34,589)

Financing

906

(2,369)

1,324

(780)

736

Dividends

(21,070)

(18,745)

(19,860)

(21,146)

(22,193)

Net Cash Flow

1,629

16,419

23,420

12,191

(16,943)

Opening net debt/(cash)

 

 

(13,991)

(15,620)

(31,099)

(53,008)

(64,042)

Finance leases initiated

0

(940)

(1,511)

(1,157)

(1,181)

Other

0

0

0

0

0

Closing net debt/(cash)

 

 

(15,620)

(31,099)

(53,008)

(64,042)

(45,918)

Source: EMIS Group accounts


General disclaimer and copyright

This report has been commissioned by EMIS Group and prepared and issued by Edison, in consideration of a fee payable by EMIS Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

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London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by EMIS Group and prepared and issued by Edison, in consideration of a fee payable by EMIS Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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Research: Industrials

Renewi — Resilient platform to accelerate growth

Increasing European legislation for recycling and recycled content provides a positive backdrop for Renewi as a waste treatment company (63.6% of waste treated was recycled in FY23). Stable FY23 results in a more challenging economic environment offer a solid platform for the management to deliver on its new target to grow sales (and profit given the margin expectations) by c 50% over the next five years.

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