- Emis Group Plc (LON:EMIS) has today reported that trading results for 2021 will be slightly ahead of the top end of consensus expectations after a second half which saw a more normal pattern of trading in its core GP software markets and double-digit growth for its EMIS Enterprise division.
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- EMIS Enterprise has benefited from its Pinnacle software, which has played a key role in organising the Covid vaccination effort, whilst EMIS Health has seen software accounting for a higher proportion of revenues as GP surgeries have returned to more normal working practices than at the height of the pandemic.
- The group also announced the acquisition of Edenbridge Healthcare Limited for £4m, with up to a further £6m payable if performance targets are met.
- The market reacted positively to the statement, and the shares rose by 1.7% in early trading.
EMIS's Strong Revenue Growth
Steve Clayton, fund manager at HL Select:
“EMIS are starting to show signs that the investment into technology of recent years is paying off in stronger revenue growth. The group are talking about potentially upping the pace of investment and making additional bolt-on deals like Edenbridge to further accelerate growth. The core GP and Pharmacy software platforms have strong market shares and reliably throw off free cash flow, so with £64m of cash in the bank and no debt, EMIS are in a strong position to grow from. News of a new £60m bank facility suggests that the group may be eyeing up bigger deals than we have seen so far.”
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