Healthcare without boundaries - EMIS Group plc Annual report and ...

Business & financial overview Financial review
“The trading results are particularly pleasing
considering the EMIS additional staff intake
during the year, largely for future benefit.”
Philip Woodrow Finance Director
Highlights
• Total revenue increased
by 18%
• Adjusted operating profit
increased by 14%
• Total dividend for the year
increased by 11%
Pre-tax profit for the year from continuing
operations, which includes the first full year
contribution from RX, amounted to £21.4m
(2010: £18.1m, including RX for a 5 month period).
The trading results are particularly pleasing
considering the EMIS additional staff intake
during the year, largely for future benefit.
Revenue
Total group revenue from continuing operations
was £73.2m, an increase of 18% over 2010.
Group recurring revenue from continuing
operations, principally being licensing and
software support, amounted to £61.1m, an
increase of £10.3m over the previous year and
representing 83% of total Group revenue from
continuing operations (2010: EMIS and RX: 82%).
Recurring revenue includes hosting to
Connecting for Health standards (including
incremental EMIS Web recurring revenues),
which amounted to £5.8m (2010: £4.5m).
Within EMIS, income from hardware sales,
engineering services and training reduced
slightly to £21.4m (2010: £21.7m). Discretionary
spending within the NHS on hardware,
engineering services and training continued
to be at lower levels, affected by pressure
on budgets, political uncertainty and some
holding back in anticipation of EMIS Web.
Profitability
The operating profit from continuing activities
was £21.5m (2010: £19.6m, adjusted to add
back flotation and other transaction costs
of £1.3m) an increase of 9.7%.
activities was £20.8m (2010: £18.2m, further
adjusted), an increase of 14%.
Taxation
The tax charge for the year of £4.4m is after
taking into account a reduction, due to the
release of deferred tax provisions, amounting
to £0.3m arising from a lowering of the rate
of corporation tax from 27% to 26%, and also
from research and development tax credits
relating to prior periods of £0.7m.
Earnings per share (“EPS”)
Basic and diluted EPS from continuing operations
was 28.71p as against 23.31p for 2010 (2010
adjusted for flotation and other transaction costs,
net of applicable tax relief was 25.27p).
Balance sheet
The Group retains a strong balance sheet with
net assets of £54.1m (2010: £46.8m) including
cash of £12.6m (2010: £7.4m) and bank term
loans reduced to £4.5m (2010: £5.7m).
Dividend
The Directors have adopted a progressive
dividend policy. Subject to shareholder
approval at the Annual General Meeting on
24 April 2012, the board proposes paying a
final dividend of 6.2p (2010: 5.6p) per ordinary
share on 30 April 2012 to shareholders on the
register at the close of business on 13 April 2012.
This would make a total dividend of 12.4p
(2010: 11.2p) per ordinary share for 2011,
an increase of 11%, reflecting the growth in
earnings and the Board’s confidence in the
Group’s future prospects.
10
EMIS Group plc Annual report and accounts 2011
Stripping out the capitalised internal development
costs and amortisation of intangible assets,
the adjusted operating profit from continuing
Phillip Woodrow
Finance Director
15 March 2012