9th Sep 2021 10:47
(Alliance News) - EMIS Group PLC on Thursday reported a 7.3% drop in profit in the first-half of 2021 after the pandemic drove opportune short-term demand a year ago.
The Leeds-based company, which makes software used by healthcare providers, said it made GBP16.4 million in pretax profit for the six months to June 30, down from GBP17.7 million in the same period last year.
Revenue grew 6.9% to GBP83.5 million from GBP78.1 million as existing customers sought more software subscription and support and the company secured one-off projects for the NHS Covid-19 vaccination programme.
However, hardware and related services revenue dropped to a "more normal level" of GBP6.4 million from GBP9.6 million in the first half of 2020 after the pandemic drove higher short-term demand in the primary care market.
Cash generated from operations also took a hit at GBP17.0 million, generating GBP19.6 million less year-on-year due to repaying delayed VAT and debtor payments in July.
"It has been a positive first half with good performance from the business, particularly in the sales, account management and delivery teams in both EMIS Health and EMIS Enterprise," said Chief Executive Andy Thorburn.
"We are returning to business as usual following the challenges of the pandemic during 2020 and we have maintained our investment in, and focus on, growth."
EMIS proposed an interim dividend of 17.6 pence, up 10% from 16.0 pence a year before. The dividend growth represents a return to pre-Covid-19 levels, the company said.
Based on first-half trading, Thorburn said the company has a "clear line of sight" to reach second-half expectations.
Shares in EMIS were down 1.9% at 1,371.10 pence in London on Thursday morning trade.
By Josie O'Brien; [email protected]
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