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Currency in GBP
Last close As at 17/03/2023
GBP18.44
▲ −4.00 (−0.22%)
Market capitalisation
GBP1,163m
Research: TMT
The Competition and Markets Authority (CMA) has finished its Phase 1 investigation and has concluded that it has concerns that the UnitedHealth takeover of EMIS could reduce competition in certain areas. It has given both parties five working days to offer legally binding proposals in lieu of a Phase 2 investigation. EMIS expects to be able to provide a further update on or around 31 March, which is the statutory deadline for the CMA to determine whether these undertakings are acceptable in principle.
EMIS Group |
More work to do to finalise takeover |
Trading update |
Software & comp services |
17 March 2023 |
Share price performance
Business description
Analyst
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 |
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The Competition and Markets Authority (CMA) has finished its Phase 1 investigation and has concluded that it has concerns that the UnitedHealth takeover of EMIS could reduce competition in certain areas. It has given both parties five working days to offer legally binding proposals in lieu of a Phase 2 investigation. EMIS expects to be able to provide a further update on or around 31 March, which is the statutory deadline for the CMA to determine whether these undertakings are acceptable in principle.
Year end |
Revenue |
PBT* |
Diluted EPS* |
EMIS adj. dil. EPS** (p) |
DPS |
P/E |
12/18 |
149.7 |
33.4 |
40.4 |
45.0 |
28.4 |
44.9 |
12/19 |
159.5 |
41.0 |
53.5 |
51.1 |
31.2 |
34.0 |
12/20 |
159.5 |
43.4 |
56.4 |
50.4 |
32.0 |
32.3 |
12/21 |
168.2 |
43.5 |
55.0 |
55.5 |
35.2 |
33.0 |
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.
On 17 June 2022, the boards of Bordeaux UK Holdings II Limited, an affiliate of Optum UK and a wholly owned subsidiary of UnitedHealth Group (‘Bidco’) and EMIS announced that they had reached agreement on the terms of a recommended all cash offer, pursuant to which Bidco will acquire the entire issued and to be issued ordinary share capital of EMIS for 1,925p per share. The acquisition is being implemented by means of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
EMIS, together with Bidco, filed a merger notice with the CMA and a Phase 1 investigation into the acquisition started on 23 January 2023. Today, the CMA has announced that it has concerns that the merger could affect competition, particularly for population health management and medicines optimisation software. Bidco and EMIS have until 24 March to offer legally binding proposals to the CMA to address the concerns identified. The CMA then has until 31 March to decide whether these proposals are acceptable in principle or if the case should be referred for a Phase 2 investigation. EMIS has confirmed it will continue to offer its full support to Bidco to obtain the necessary clearance. Bidco, with the full support of EMIS, intends to engage with the CMA with the objective of agreeing suitable undertakings in lieu of a Phase 2 reference.
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Research: Metals & Mining
Endeavour closed a strong FY22 with production of 1,400koz, achieving the top end of the guided 1,315–1,400koz range, while all-in sustaining costs (AISC) amounted to c US$928/oz, within the guided range of $880–930/oz. This marks the 10th consecutive year in which the company has either achieved or exceeded both its production and AISC cost guidance. In light of its positive performance, Endeavour boasted adjusted net earnings of US$65m, or US$0.26/share in Q422, totalling US$405m, or US$1.63/share for FY22. The company looks set to reinvest in organic growth throughout FY23 via the Sabodala-Massawa expansion and Lafigué greenfield project construction, while committing to various exploration projects. FY22 results follow recent announcements about FY23 production guidance, which is broadly comparable to FY22 at 1,325–1,425koz, AISC of US$940–995/oz and H222 dividend payments of US$100m confirming a total dividend of $200m in FY22, 33% above its minimum committed level of US$150m.
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