Shares in leading GP systems supplier EMIS Group rose more than 7% this morning after it delivered 19% revenue growth in the first half – all of which organic – taking its revenue to £42.3m. Meanwhile operating profits for the six months to 30 June were up 18.6% to £12.1m, keeping the margin more or less flat at 28.6%. Having updated in July on its good start to 2012 (see EMIS in good health at half time), EMIS is going from strength to strength, driven by its next generation hosted GP system EMIS Web, and its pharmacy systems supplier RX Systems.
EMIS now has 962 GPs using EMIS Web as of 30 August, up from 747 on 30 June. Revenue from EMIS Web is growing fast too, albeit from a low base – up 39% on this time last year to £3.9m. This strong growth should continue in the second half and beyond, with EMIS on track to perform 200 roll outs per month from September, as it attempts to keep up with demand – there were 1,385 unfulfilled orders for EMIS Web GP at half time, up from 1,205 on 31 December. There are a further 2,735 practices in the familiarisation service.
RX Systems is also motoring along. Revenue here grew 26.6% to £8.1m (of which 77% is recurring), and the operating margin went up considerably to 16.5% vs. 11% last time. EMIS is now looking at opportunities to expand the reach of RX’s point of sale systems from prescriptions into the retail pharmacy space. It currently has 36% of the market for pharmacy systems, so if it is successful there should be more growth to come here too.
We will be speaking with CE Sean Riddell this morning and will provide more colour and movement later in UKHotViewsExtra.