16th Mar 2016 09:35
LONDON (Alliance News) - Healthcare software company EMIS Group PLC on Wednesday reported a big drop in pretax profit in 2015 due to exceptional charges, though revenue increased and underlying profit rose.
EMIS said pretax profit for the year to the end of December fell 61% to GBP11.4 million from GBP29.1 million in 2014. The company booked two one-off impairment charges in the year, related to the acquisition of Ascribe and its investment in Pharmacy2U. Adjusted pretax profit, stripping out those one-offs, rose to GBP36.6 million from GBP32.6 million.
Revenue rose 13% in the year to GBP155.9 million from GBP137.6 million, as recurring revenue streams increased 20% to GBP123.0 million from GBP102.7 million.
EMIS said operating margins improved in the year, though revenue growth was held back by the timing of contracts for its Secondary Care unit. The company expanded market share in Primary Care and Child, Community & Mental Health in the year and said its revenue visibility, at 79%, is robust for 2016.
EMIS said its order book looks strong in all business lines, and it expects an improved performance from its Secondary Care arm in 2016.
The group will pay a 10.6 pence final dividend, up from 9.2p, taking its total payout up 15% year-on-year to 21.2p.
"EMIS Group has again reported good underlying profit growth in line with the board's expectations, derived from a mix of organic and acquisitive growth. Our outlook is encouraging, with strong revenue visibility, growing market shares, and good momentum in our order books and pipelines," said Chief Executive Chris Spencer.
EMIS shares were up 0.6% to 1,058.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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