EMIS board hikes dividend for 11th consecutive year

Healthcare software and service provider EMIS Group hiked its dividend for the 11th consecutive year on Thursday, as it reported a 6% improvement in total revenue to £168.2m.

The AIM-traded firm said recurring revenue was 4% higher year-on-year for the 12 months ended 31 December at £134.8m, while its adjusted operating profit jumped 11% to £43.5m.

Its reported operating profit was level with the prior year, at £35.8m.

EMIS said its adjusted operating margin expanded by 125 basis points to 25.9%, although its reported margin shrank by 16 basis points to 21.3%.

Both adjusted and reported cash generated from operations fell 22%, to £46m and £50.1m, respectively, while the company ended the year with net cash of £64m - 21% higher than the prior year.

Adjusted earnings per share were 10% higher year-on-year at 56.1p, while reported earnings totalled 46.2p per share, down 4%.

The board proposed a final dividend of 17.6p per share, up 10% on the final payment for 2020, which would also take the total distribution for the year up 10%, to 35.2p.

Looking ahead, EMIS said it was focussed on supporting its customers in the recovery from Covid-19, with its technology closely aligned with the NHS strategy, recurring revenue at 80% and “leading” market shares.

It said its ‘EMIS-X’ technologies had good potential to accelerate efficiency and growth in both the EMIS Health and EMIS Enterprise divisions.

The board said the firm’s “strong” balance sheet provided a platform to deliver organic and inorganic growth ambitions, adding that management was focussed on delivering consistent revenue growth, as well as expanding margins over time.

“It has been a positive year of good growth and margin performance driving strong results, with the group delivering the 11th consecutive year of dividend growth,” said chief executive officer Andy Thorburn.

“The NHS and wider healthcare sector continues to evolve as we emerge from the pandemic, with increasing recognition of technology as central to solving some of the challenges the industry now faces.

“EMIS Group is well placed with products directly aligned to market need, including integrated care software to the NHS, and data and analytics technology to the research and life sciences industry.”

Thorburn said that would be “critical”, as the sector looked to provide the best healthcare possible to the UK population.

“We remain focussed on enabling better care through technology innovation, with a presence in all key healthcare markets and strong relationships at every level.

“We look forward to playing a significant role in the digital future of the healthcare industry.

“Overall we are building growth momentum and are well positioned to perform strongly again in 2022.”

At 1131 GMT, shares in EMIS Group were up 0.32% at 1,254p.