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Last close As at 17/03/2023
GBP18.44
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Market capitalisation
GBP1,163m
Research: TMT
EMIS Group’s year-end update confirms that FY22 revenue and adjusted operating profit were in line with the board’s expectations and it closed the year with net cash of £45.9m. The company also confirmed that a merger notice has been filed with the Competition and Markets Authority (CMA) regarding its takeover by UnitedHealth. The CMA’s Phase One investigation period commences on 23 January and EMIS expects the acquisition to complete in late Q123 or early Q223.
EMIS Group |
Update on takeover process |
Trading update |
Software & comp services |
20 January 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 |
EMIS Group’s year-end update confirms that FY22 revenue and adjusted operating profit were in line with the board’s expectations and it closed the year with net cash of £45.9m. The company also confirmed that a merger notice has been filed with the Competition and Markets Authority (CMA) regarding its takeover by UnitedHealth. The CMA’s Phase One investigation period commences on 23 January and EMIS expects the acquisition to complete in late Q123 or early Q223.
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 |
46.7 |
12/19 |
159.5 |
41.0 |
53.5 |
51.1 |
31.2 |
35.3 |
12/20 |
159.5 |
43.4 |
56.4 |
50.4 |
32.0 |
33.5 |
12/21 |
168.2 |
43.5 |
55.0 |
55.5 |
35.2 |
34.3 |
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 (the ‘Scheme’).
In its last update on 1 November, EMIS announced that, together with Bidco, it was in the process of finalising a merger notice with the CMA, preliminary to a Phase One investigation of the acquisition. The CMA has now confirmed that the merger notice meets the applicable requirements under the Enterprise Act 2002 and a Phase One investigation period will commence on 23 January. Subject to satisfactory conclusion of the Phase One investigation, EMIS expects the acquisition to complete by the end of Q123 or early in Q223.
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Research: TMT
4imprint’s update shows the group continuing to trade strongly through Q422 and we again upgrade estimates. FY22 revenue will be $1.14bn, or 3% ahead of our earlier modelling, and 45% ahead of the prior year. An 8.8% adjusted operating margin compares with our earlier assumption of 8.2%. We edge our revenue forecasts up by 3% for FY23 and FY24, but assume some modest settling back in margin to reflect additional operating costs to support the increased scale of the business. As before, we suggest management may propose an FY22 special dividend, given net cash of $86.7m at the year-end.
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