Emis Group (LON:EMISG) has confirmed that trading was in line with expectations for FY16, despite a challenging environment in the NHS. Primary Care, Community Pharmacy and Patient all performed well in H216, offset by weaker trading for Secondary Care, Specialist Care and CCMH. We make no changes to our forecasts pending FY16 results in March. Despite the short-term impact on demand from NHS funding issues, we expect the need for an integrated approach to healthcare to drive demand for EMIS solutions in the longer term.
FY16 in line with expectations, despite headwinds
EMIS expects to report FY16 results in line with expectations. While Primary Care has maintained its market position and Community Pharmacy trading was on track, NHS funding pressures have made for challenging trading in the Secondary Care (SC) business and to a lesser extent in Community, Child and Mental Health (CCMH). Despite this, CCMH grew market share in H216 and we assume it met its 15% year-end target. Recent restructuring in SC should mitigate the impact on profitability. Specialist Care remains challenging and a non-cash impairment charge is being considered; processes have been put in place to improve profitability over the life of existing contracts.
To read the entire report Please click on the pdf File Below