Emis hails strong 2014 results

Emis Group has reported a 30% increase in annual revenue for 2014, saying its performance was buoyed by growth in the community health sector and major deals in secondary and specialist care.

The company yesterday announced its preliminary financial results for 2014, with annual revenue increasing to £137.6 million from £105.5 million in 2013.

Emis’ adjusted operating profit also increased significantly, rising to £32.6 million – a 25% rise from the £26.1 million adjusted profit in 2013.

The company says its financial performance is in line with expectations, with 11% organic revenue growth and positive contributions from its recent acquisitions.

It says it has maintained its leading position in primary care, with 53.1% of the UK market share and a place of the new GP Systems of Choice framework agreement. Emis Web was also live at 4,261 practices by the end of 2014, an increase of 934 on 2013.

Emis says it is continuing to build momentum in the community, children’s and mental health sector, with more than £14 million of contract wins growing its market share from 3% to 8%.

In secondary and specialist care, unexpected delays in securing contracts for clinical software supplier Ascribe – which Emis acquired in September 2013 – means that some revenue has been delayed into 2015.

“However, the strong order book and pipeline are encouraging for further progress in 2015,” the announcement says.

The announcement highlights a formal agreement with NHS Wales to provide an emergency and unscheduled care solution across the whole of Wales, worth up to £7.6 million over seven years.

Two of the six Welsh health boards signed deployment orders for the Emis Symphony solution at the time the main agreement was formalised, according to Emis.

The company also says Indigo 4, an electronic messaging and order communications supplier which it purchased last July for £3.2 million, has performed well and is expected to be “earnings enhancing” for the first full year of ownership.

Chris Spencer, Emis Group’s chief executive, said the company has focussed on establishing closer integration of the group’s healthcare solutions to match expectations in the NHS and boost earnings potential.

“There is ongoing, all-party acceptance that integrated care is a key part of the solution to the social, demographic and financial challenges of the NHS,” Spencer said.