EMIS revenue and profits up

Healthcare IT company EMIS has announced an increase in profits for the first six months of the year from £5.8m to £6.7m.

The company, which floated on the Alternative Investment Market in March, also saw revenue grow slightly from £28.9m in the first half of 2009 to £29m in January to June 2010.

The company said recurring revenue increased from 74% to 81% and market share in the UK increased from 52.5% to 53.8%.

In Scotland, market share has increased from 12.7% to 46.9% as part of NHS Scotland’s drive to switch practices using GPASS software to either EMIS or fellow healthcare IT supplier INPS.

Sean Riddell, EMIS chief executive, said the company had now delivered on its key promises following the flotation.

He cited roll-out approval for its next generation system, EMIS Web, the increase in market share in Scotland, the launch of a joint venture with INPS to enable interoperability, and the acquisition of pharmacy system supplier Rx Systems.

He added: “Our main priority is to build on the foundations we have put in place to increase the scale of the roll-out of EMIS Web.

"We are already seeing a high level of intent from customers to upgrade to our transformational, next generation system.”

The half year results show that revenue from PCT discretionary spending on hardware and services has fallen because of pressure on NHS budgets.

However, EMIS said this had been offsetby accreditation for hosting to NHS Connecting for Health standards.

The company achieved accreditation last December and this accounted for £1.9m of revenue in the first half of the year.

EMIS said accredited hosting revenue was “growing strongly” and predicted it would generate about £2.8m in the second half of the year.

Riddell said that despite cutbacks in the NHS, the company was confident it could help health professionals deliver more for less.

He predicted that the use of EMIS Web for extended care in Cumbria, Liverpool and Tower Hamlets would now be replicated elsewhere.

EMIS formed a 50:50 joint venture with INPS in June to enable data sharing via a Medical interoperability Gateway and acquired 78.9% of community pharmacy software suppliers Rx Systems in August this year.

Sean Riddell will be speaking at EHI Live 2010, the essential two day conference and exhibition for anyone in the e-health community.

Online registration for the event, which will be held at the NEC in Birmingham from 8-9 November, is now open.