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

Financial statements
Notes to the financial statements
1. General information
EMIS Group plc (“the company” or “the parent company”) is the parent company of subsidiary companies (together “the group”) whose
activities consist of the design, development, supply and support of computer software and systems for healthcare professionals, principally
general practitioners and pharmacists, and other users.
The company is incorporated in England and Wales and domiciled in the UK. The address of its registered office is Fulford Grange,
Micklefield Lane, Rawdon, Leeds, LS19 6BA.
The company converted to plc status on 19 March 2010 and acquired a listing on AIM on 29 March 2010. The company was formerly called
EMIS Group Limited.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied
consistently to all periods presented.
2.1 Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with International Financial Reporting
Standards (“IFRS”) as endorsed by the European Union, International Financial Reporting Interpretations Committee (“IFRIC”) interpretations
and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of critical accounting
estimates and assumptions that affect the reported amounts of assets and liabilities and of revenues and expenses. It also requires management
to exercise its judgement in the application of accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the company or group financial statements are disclosed in note 3.
2.1.1 Going concern
The company’s activities and an outline of the developments taking place in relation to its products, services and marketplace are considered
in the Chairman and Chief Executive’s Review on pages 4 to 6. The revenue, trading results and cash flows are explained in the Financial Review
on pages 10 to 12. Note 4 to the Financial Statements sets out the company’s financial risks and the management of capital risks.
The company has structured bank debt of £4.6m repayable by March 2014. However, it is profitable and expects to continue to be so. It has
significant cash resources to more than cover its bank borrowings, a high and continuing level of recurring revenue and also expects to continue
to have high cash conversion for the foreseeable future.
Accordingly, after careful enquiry and review of available financial information, including projections of profitability and cash flows for the two
years to 31 December 2013, the directors believe that the company has adequate resources to continue to operate for the foreseeable future
and that it is therefore appropriate to continue to adopt the going concern basis of accounting in the preparation of the consolidated and
company financial statements.
2.2 Parent company statement of comprehensive income
As permitted by s408 Companies Act 2006, the parent company has not presented its own statement of comprehensive income. The profit of the
parent company for the year was £9,254,000 (2010: £2,923,000).
2.3 Changes in accounting policy and disclosure
(a) New and amended standards adopted by the group
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2011:
• Amendment to IAS 24 Related Party Disclosures, which amends the definition of a related party.
(b) New standards, amendments and interpretations issued and early adopted
The following new standards and amendments and interpretations to standards have been early adopted:
IFRS 11 Joint Arrangements, which differentiates “joint ventures” from “joint operations,” together with amendments to IAS 27 Separate Financial
Statements and IAS 28 Investments in Associates and Joint Ventures. Consequently the group have been required to early adopt IFRS 10
Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities.
Business & financial overview Corporate governance Financial statements
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