TIDMEMIS
RNS Number : 0216M
EMIS Group PLC
06 May 2020
6 May 2020
EMIS Group plc
("EMIS Group" or "the Group")
AGM Statement
Ahead of its AGM being held later today, EMIS Group issues the
following update on trading and other matters.
The Board of EMIS Group, the UK leader in connected healthcare
software and systems, is pleased to announce that trading for the
year to date is in line with the Board's expectations. As reported
on 18 March 2020 at the time of its 2019 Full Year Results, the
Group is focussed on supporting its customers in tackling the
challenges posed by the COVID-19 pandemic.
While continuing to meet service level obligations, the Group
has dedicated a team to respond to urgent requests from NHS and
Community Pharmacy customers for functionality changes and new
patient-related, data-driven insights. As an example, the Group has
announced its first research collaboration with The Nuffield
Department of Primary Care at the University of Oxford and the
Royal College of General Practitioners; a not-for-profit project
focussed on coronavirus with almost 600 practices signed up so far.
This NHS sponsored PRINCIPLE trial is testing the effectiveness of
various treatments in the early phases of COVID-19. EMIS Health is
also continuously working to support NHS frontline staff, who are
doing an outstanding job in looking after the nation, through daily
engagement with customers and users at central and local
levels.
Financial position and trading
The Group continues to have market-leading positions and high
levels of recurring revenue. It remains in a strong financial
position, with the expected normal seasonal cash inflows increasing
the cash position to GBP40.0m at 30 April 2020. The Group has no
bank debt and undrawn banking facilities of up to GBP60.0m. Subject
to approval at today's AGM, the 2019 final dividend payment of 15.6
pence per share, amounting to GBP9.8m, will be paid as planned on
11 May 2020.
As anticipated, following a good start to the year, trading
patterns have altered due to the need for flexible working
solutions for the Group's customers. While recurring revenues have
continued as normal, as anticipated new business sales have been
lower than in 2019 and weighted more towards lower-margin hardware.
Costs continue to be controlled carefully to ensure any impact of
delayed new business revenues is minimised, however there is
currently no intention to furlough any staff.
This is in line with the Group's assessment of market conditions
as set out at the time of the 2019 Full Year Results and, assuming
that markets will improve gradually in the second half of the year,
the Board's expectations for the full year remain unchanged.
Roadmap progress
Given the strength of the Group's business model (including
approximately 80% recurring revenue) and its strong cash position,
the Board has decided to continue investing in the execution of the
Group's strategic roadmap, rather than take short-term cost-saving
measures in response to COVID-19.
Demand for the Group's Patient Access service has continued to
grow, surpassing 10m registered users; up from 8.4m at the end of
2019. It is clear that digital health capabilities will be even
more important post COVID-19 and Patient is well positioned, as the
leading healthcare app in the UK, for continued growth. Patient's
coronavirus hub has been accessed 3.4m times by 2.6m people and
over 300,000 people have used the coronavirus symptom checker.
Users also benefit from the most up to date news from Dr Sarah
Jarvis, Patient's resident GP.
Investment in EMIS-X has been maintained and will be increased
through 2020. Development of the EMIS-X platform continues as
planned, with new functionality being completed on a regular basis
and end user applications expected to launch from 2021.
Board changes
As previously announced, and having completed nine years'
service, Mike O'Leary will retire from the Board at the conclusion
of the AGM today, with Patrick De Smedt taking over as Chair. The
directors would like to thank Mike for his excellent contribution
over many years and they look forward to working with Patrick in
the future.
Andy Thorburn, Chief Executive Officer of EMIS Group, said:
"While the Group continues to navigate short-term market
volatility, the Board believes that it is in the best interests of
all stakeholders to continue with the execution of the strategic
product roadmap to deliver greater integration and efficiency in
healthcare.
The investments being made by the Group and the capabilities
being built will be even more relevant after COVID-19. The Board is
confident the Group will create significant value for shareholders
over time while delivering opportunities for customers in the NHS
and in the private and consumer healthcare sectors."
Enquiries:
For further information, contact:
EMIS Group plc Tel: 0113 380 3000
Andy Thorburn, CEO
Peter Southby, CFO
www.emisgroupplc.com
@EMISGroup
Numis Securities Limited (Nominated Adviser & Broker) Tel: 020 7260 1000
Oliver Hardy/Simon Willis/James Black
MHP Communications Tel: 020 3128 8572
Reg Hoare/Giles Robinson/Florence Mayo emis@mhpc.com
Notes to Editors
EMIS Group is the UK leader in connected healthcare software and
systems. Its solutions are widely used across every major UK
healthcare setting. EMIS Group's aim is to join up healthcare
through innovative technology, helping to deliver better health
outcomes to the UK population, supporting longer and healthier
lives.
EMIS Group has two core business segments: EMIS Health and EMIS
Enterprise.
EMIS Health is a supplier of innovative integrated care
technology to the NHS, including primary, community, acute and
social care.
EMIS Enterprise is focussed on growth in the
business-to-business technology sector within the healthcare
market, including management of medicines, partner businesses,
patient-facing services and UK healthcare blockchain.
EMIS Group's brands include:
-- EMIS Health, supplying innovative and essential technology to
10,000 healthcare organisations, in the number one or number two
market positions in each of its major markets;
-- Patient, the UK's leading independent provider of
patient-centric medical and well-being information and related
transactional services; and
-- Egton, providing specialist ICT infrastructure, hardware and
engineering services, and non-clinical software into health and
social care.
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END
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