H1 2011 Results Presentation 02 September 2011 1 healthcare - - PowerPoint PPT Presentation

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h1 2011 results presentation 02 september 2011
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H1 2011 Results Presentation 02 September 2011 1 healthcare - - PowerPoint PPT Presentation

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H1 2011 Results Presentation 02 September 2011 1 healthcare without boundaries Financial Highlights * Revenue of 35.5m (H1, 2010: 28.7m), up 24% Group operating profit of 10.2m (H1, 2010: 9.0m (1) ), up 14% Cash generated

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H1 2011 Results Presentation 02 September 2011

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Financial Highlights*

  • Revenue of £35.5m (H1, 2010: £28.7m), up 24%
  • Group operating profit of £10.2m (H1, 2010: £9.0m(1)), up 14%
  • Cash generated from operations £20.5m (H1, 2010: £18.5m), up £2.0m
  • Net cash of £12.8m (H1, 2010: £10.5m), up £2.3m
  • EPS from continuing operations of 13.10p (H1, 2010 adjusted:

11.38p(1)), up 15%

  • Interim dividend of 6.2p (H1, 2010: 5.6p), up 11%

* H1 2011 includes Rx Systems

(1) Adjusted for flotation and other transaction costs

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Operational Highlights

  • UK GP software market leading position maintained:

– UK market share 53.4% (H1, 2010: 53.8%):

  • 117 GP practices deployed in Scotland
  • total of 5,506 EMIS GP practices at period end (H1,

2010: 5,592)

  • GPSoC contract extended to March 2013
  • EMIS Web roll-out continues:

– 107 GP practices installed with 1,130 further orders placed – 2,091 practices in the EMIS Web familiarisation service

  • Rx Systems integration on track:

– high street pharmacy systems market share increased from 25% to 30%

  • Canadian exit completed in all material respects
  • Internal refocus to address commercial opportunities
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Financial Review

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Profit and Loss

  • Revenue increased by 23.5%:

– includes £2.7m accredited hosting

  • Adjusted operating profit increased

by 13.8%

  • Tax rates lower
  • CT 26.5% average
  • DT 2% reduction on all intangibles
  • Adjusted EPS up 15.1%

£m Continuing operations H1 2011 H1 2010 % Change Revenue 35.5 28.7 23.5% Operating profit 10.2 8.0 27.3%

  • adjusted

9.0* 13.8% Profit before tax 10.2 7.8 31.2%

  • adjusted

8.8* 16.9% Tax (2.4) (2.4)

  • Profit after tax

7.8 5.4 44.7%

  • adjusted

6.2 26.0% EPS 13.10p 9.91p 32.1%

  • adjusted

11.38* 15.1%

* 2010 H1 adjusted for float/transaction costs:

  • Operating profit/PBT - £0.96m
  • PAT and EPS, net of tax relief, £0.8m
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Segmental Analysis

£m H1 2011 H1 2010 EMIS Rx Systems EMIS and Rx Systems total EMIS Revenue 29.1 6.4 35.5 28.7 including: Recurring revenue 24.5 5.4 29.9 23.3 Segmental operating profit*: 9.9 0.7 10.6 9.0

  • add back amortisation

1.1 0.4 1.5 1.0

  • deduct capitalised development costs

(1.7)

  • (1.7)

(2.0) Adjusted segmental operating profit 9.3 1.1 10.4 8.0 * As set out in note 9(b) of the financial statements.

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Operational Revenues

  • Licenses and software support increased by £3.3m (25%) including £2.0m from Rx

£m H1 2011 % of sales H1 2010 % of sales FY 2010 % of sales FY 2009 % of sales Licenses and software support 16.4 46% 13.1 46% 28.0 45% 25.8 45% Support services 9.7 27% 7.2 25% 16.6 27% 15.4 27% Hosting 2.8 8% 2.3 8% 5.2 8% 3.3 6% Hardware and training 5.1 15% 4.8 17% 9.6 16% 9.4 16% Other 1.5 4% 1.3 4% 2.5 4% 3.3 6% Total 35.5 100% 28.7 100% 61.9 100% 57.2 100% Recurring 29.9 84% 23.3 81% 50.8 82% 42.7 75% Non-recurring 5.6 16% 5.4 19% 10.9 18% 14.5 25% Total 35.5 100% 28.7 100% 61.9 100% 57.2 100%

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Cash Flow

£m H1 2011 H1 2010 FY 2010 Cash from operations: Generated 21.2 19.8 24.2 Less internal development costs capitalised (1.7) (2.0) (3.8) Adjusted cash from operations 19.5 17.8 20.4 Used for: Canadian discontinued activity (0.4) (1.3) (2.0) Acquisition of Rx Systems

  • (3.2)

Net capex (2.2) (2.4) (5.3) Repayment of bank term loans (0.6) (0.6) (1.2) Share issues

  • 24.1

24.1 Repayment of shareholder loans

  • (23.0)

(23.0) Bank and other interest (0.1) (0.7) (0.4) Taxation (2.3) (2.3) (3.9) Interim dividend (3.3) (3.3) (8.9) (6.2) 18.2 Cash increase 10.6 11.6 2.2

  • Adjusted cash from operations

increased by £1.7m

  • Capex includes hosting assets of

£0.8m

  • Positive cash movement in 2011

H1 of £10.6m

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Balance Sheet

  • Fixed assets – intangibles reduce by

£1.2m due to Canada impairment

  • Deferred income continues to

increase due to impact of Rx and growth of accredited hosting

  • Cash of £18.0m (2010 H1 was

£16.8m)

  • Bank term loans reduced to £5.2m
  • Deferred tax on intangibles reduces

via Income Account to £7.8m – no cash implications going forward

£m 30.06.11 31.12.10 Fixed assets 65.3 65.9 Cash 18.0 7.4 Other current assets 12.2 9.8 Total assets 95.5 83.1 Current liabilities (12.7) (10.3) Deferred income (19.7) (10.9) Bank term loans (5.2) (5.7) Rx contingent consideration (0.7) (0.9) Deferred tax (7.8) (8.5) Net assets 49.4 46.8

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Operational Review

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EMIS Group Overview

  • Key objectives for H1 2011 achieved:

– EMIS Web roll out – Scottish GP installations underway – Rx Systems growth and synergies

  • Delivery of cross-organisational healthcare strategy:

– Primary and community healthcare wins

  • EMIS Group’s strategy aligned with new NHS White Paper
  • Wider application beyond the NHS:

– Australian Armed Forces

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EMIS Web Update

  • Roll-out continues:

– 107 GP practice installations completed – 1,130 further orders placed for EMIS Web – 2,091 GP practices using the familiarisation service – Since the period end, installation has been completed at a further 78 GP practices

  • Building up resources to deliver accelerating roll out
  • In negotiation with a number of PCTs and Clinical Commissioning

Groups regarding EMIS Web in extended primary and community healthcare settings

  • Various pathfinder services deployed or being deployed in extended

primary care

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  • Strategy to deliver cross-organisational healthcare systems
  • EMIS Group well positioned and aligned with Government strategy:

– EMIS Web – Healthcare Gateway – Rx Systems

A&E Out of hours DN HV Diabetes GP Child health Pathology S pecialist services Hospital pharmacy Extended services Long term conditions Data streaming EMIS GP S ystems GP GP GP Maternity ICU Inpatient

Market Opportunities

Emis IQ – business intelligence for GP consortia

NHS Network

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Rx Systems

  • Rx Systems:

– A leading pharmacy software and services company – 3,849 high street pharmacy sites – UK market share has now increased from 25% to 31% – 84% recurring revenues – Cash generative

  • Combination of EMIS and Rx Systems will enable:

– Online connection between patient, GP and pharmacist – More efficient prescription flows – Improved links to Electronic Healthcare Record – Cross-selling opportunities within EMIS Group

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  • JV between EMIS and InPS:

– Covers 75% of UK GP practice data – Facilitates sharing of patient data

  • Benefits include potential to significantly

increase NHS efficiency and improve patient care

  • Enables real time interoperability between

GPs using EMIS/InPS and other healthcare professionals

  • NHS interoperability standard accredited
  • Product development and pilots underway

Healthcare Gateway

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Current Trading and Outlook

  • Controlled roll-out of EMIS Web progressing
  • Strong revenue visibility continues:

– GPSoC framework agreement extended until 2013

  • Key themes of second half performance in 2011:

– EMIS Web controlled roll-out – Increasing hosting revenues – Scotland revenue growing

  • EMIS Group continues to trade in line with management expectations.
  • Remain optimistic for the full year and confident in the Group’s long term growth prospects.
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Appendix

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Primary Care – EMIS Web Messaging and/or Viewing

OUR PATIENTS

eSAP Mental Health Secondary Care - SUS (Qute) A&E In Patient Out Patient Acute Trust District Nursing PCT Commissioned Services Out of Hours Child Health (V&I) Community Hospital PAS & EMIS Web as clinical system Hosted EMIS Web Hosted EMIS Web Interfaces & Setup Hospital clinicians read access to agreed parts of EMIS GP patient record. This is likely in the short term to be either via the MIG to EMIS Web. Single interface for pathology requesting and electronic transfer of data including correspondence Interfaces OOH via Adastra utilising EMIS Web as the core clinical system GP Surgeries Multiple data sharing agreements, local pathways/templates, standardized document handling and label printing etc within practices Single interface for Order- comms, paperless pathology requesting and electronic transfer of data including correspondence/discharge summaries – sites Interfaces & Setup The Community hospitals will use EMIS web as their clinical system and admin system,. Clinical results will be accessed via a middleware package Setup A network of “virtual services” with data sharing within/without the community service has developed, along with the business intelligence and reporting has been established Podiatry Nursing STINT Independent GP Surgeries : Patient access Interfaces & Setup The patient are be able to access their medical records via EMIS access Community Pharmacy Pharmacy To be addressed through EPS2 CH In scope for EMIS Web deployment Interop with MH is under POC via MIG