EMIS Group plc Annual Report and Accounts 2021

Better care through technology innovation

Highlights

Total revenue

£168.2m +6%

Recurring revenue1

£134.8m +4%

Reported operating profit

£35.8m -

Adjusted operating profit1

£43.5m +11%

Reported operating margin

21.3% -116bps

Adjusted operating margin1

25.9% +125bps

Reported cash generated from operations

£50.1m -22%

Adjusted cash generated from operations1

£46.0m -22%

Reported EPS

46.2p -4%

Adjusted EPS1

56.1p +10%

Net cash1

£64.0m +21%

Total dividend for the year

35.2p +10%

Total revenue

£168.2m +6%

Recurring revenue1

£134.8m +4%

Reported operating profit

£35.8m -

Adjusted operating profit1

£43.5m +11%

Reported operating margin

21.3% -116bps

Adjusted operating margin1

25.9% +125bps

Reported cash generated from operations

£50.1m -22%

Adjusted cash generated from operations1

£46.0m -22%

Reported EPS

46.2p -4%

Adjusted EPS1

56.1p +10%

Net cash1

£64.0m +21%

Total dividend for the year

35.2p +10%

1 Recurring revenue, adjusted operating profit, adjusted cash generated from operations, adjusted EPS and net cash are all alternative performance measures. See page 22 of the annual report for further details and reconciliation to the relevant IFRS number.
  • Increased dividend for the eleventh consecutive year
  • Double-digit revenue growth in EMIS Enterprise, now accounting for more than 40% of profit
  • 27 customers now using EMIS-X Analytics, 12 in EMIS Enterprise and 15 in EMIS Health (2020: 25 pilot customers) with good potential for growth
  • Post year end acquisitions of Edenbridge Healthcare and FourteenFish to grow EMIS Enterprise, enhancing the Group’s data, analytics and digital portfolio and strengthening capabilities
  • As part of EMIS’s Integrated Care Systems (ICS) strategy, continuing to deliver integrated care with EMIS-X interoperability technology enhancements released in key markets through 2021 and 2022 to date
  • Supported the NHS in delivering more than 100 million Covid-19 vaccinations (86% of the total)

At a glance

EMIS Health
Primary care
49%
of revenue in 2021
  • #1 in primary care
Community care
8%
of revenue in 2021
  • #2 in community
Acute care
7%
of revenue in 2021
  • #1 in A&E

Business areas where revenues are generated from delivering core software and ancillary services to NHS organisations.
 

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EMIS Enterprise
Medicines management
23%
of revenue in 2021
  • #1 in community pharmacy
  • #1  in community pharmacy service management solutions
  • #2 in hospital pharmacy
Partners, analytics and other services
11%
of revenue in 2021
  • 148 accredited partners
  • 27 customers using EMIS-X Analytics
Patient-facing services
2%
of revenue in 2021
  • #1 independent patient services app

Business areas where revenues are derived predominantly from business-to-business (B2B) healthcare sector sources.
 

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The clinical software business, supplying essential technology to 10,000 healthcare organisations across every major UK health sector for front line clinical care and to facilitate health research.
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The UK’s leading independent provider of patient-centric medical and wellbeing information for the UK public, as well as digital front door access to NHS and private services provided in primary care and community pharmacy settings.

Why invest?

Strong positions in specialist markets

35

years providing front line
technology to the healthcare
sector

  • Market leader delivering at scale: growing or maintaining market shares, number one or two in key UK healthcare markets
  • Unique in the breadth of markets served
  • Aligned with the NHS Long Term Plan, providing growth drivers for increasing investment into technology for the NHS

Growing the business

100m

Covid-19 vaccinations
supported by EMIS

  • Strong performance in 2021
  • Growth in multiple markets
  • Investment in technology roadmap with the potential for acceleration to drive growth in EMIS Health
  • Double-digit growth in the areas of patient-facing services, analytics and pharmacy in EMIS Enterprise
  • Acquisitions accelerate speed to market

Excellent financial strength and track record

£64.0m

net cash

  • Unbroken track record of increasing dividend each year since IPO
  • Compound growth rates since flotation in 2010 of 10% in revenue and 8% in adjusted operating profit
  • Strong balance sheet with no debt
  • Bank facilities of up to £60m in place
  • Investment will not impact progressive dividend policy or require significant leverage

High levels of earnings visibility and cash generation

80%

recurring revenue

  • Robust business model with high recurring revenue, typically around 80%
  • Long-term framework agreements in place across major markets
  • Loyal customer base with low churn rates
  • Consistent strong cash generation

New technology driving future growth and efficiency

£21.3m

research and development
(R&D) investment

  • Technology and cloud refresh strategy will increase efficiency and expand margins in the mid term
  • Focussed on developing new, standards-based, capabilities to connect care settings across the UK
  • EMIS-X platform will drive growth in both EMIS Health and EMIS Enterprise
Chair’s statement

Our focus remains on our future growth strategy in alignment with NHS policy, patient demand for better UK healthcare and new opportunities in EMIS Enterprise markets.

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Chief Executive Officer’s statement

We are confident of delivering a higher level of consistent revenue growth, as well as expanding margins by completing the next stage of our technology and cloud refresh strategy over the coming years.

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Connecting with key stakeholders

The Board reviews key topics through the year, carefully considering stakeholder interests when making decisions on strategically important matters as the Directors discharge their duties in alignment with Section 172 (s.172).

Download  stakeholder engagement

 

CUSTOMERS

"Customer engagement helps us deliver our purpose: the better we can support customers the more they can focus on patient care and improved outcomes."

Suzy Foster
Chief Executive Officer EMIS
Health and EMIS Enterprise

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EMPLOYEES

"Our purpose unites our employees and creates stakeholder value: collectively we can all feel proud of how we’ve supported our customers, particularly through the pandemic, finding meaning in our individual contributions."

Jacqui Summons
EMIS Group HR Director

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SHAREHOLDERS

"EMIS Group’s purpose creates shareholder value as it demonstrates our commitment to the ethics that drive our business, which creates a sustainable business model in the long-term.”

Peter Southby
EMIS Group Chief Financial Officer

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ESG summary

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Our priority

A commitment to continue reducing environmental impact and to measure improvement.

Our ambition

Become carbon neutral by 2030.

Our achievements

  • 56% of EMIS’s fleet now hybrid.

  • 60% of UK electricity consumption from renewable/low carbon providers.

  • 10.5% reduction in total energy consumption for the UK.

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Our priority

Every initiative, development, product and service EMIS produces has a positive impact on UK society.

Our ambition

Improve NHS outcomes for individuals and address health inequality.

Our achievements

  • 100 million Covid-19 vaccinations recorded on EMIS software.
  • 1.5 million people identified for priority vaccinations through EMIS-powered research.
  • 15.7 billion prescription items processed through the lifetime of EMIS Web.

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ESG - Our community .svg

Our priority

To live the EMIS Group values and create a diverse and positive culture in which EMIS people can thrive.

Our ambition

Become an employer of choice by 2025.

Our achievements

  • 87% of employees agreed that EMIS met its targeted engagement metrics.

  • 20 mental health first aiders.

  • 50 employee forum meetings held during 2021.

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Our priority

Clinical safety, data security and proactive risk management is at the heart of everything EMIS does.

Our ambition

Continued commitment to high standards of governance in every area.

Our achievements

  • 16% reduction in gender pay gap as published in 2021.

  • 121 members of the clinical team meticulously oversee new developments.

  • 99% of staff trained in governance policies.

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What ESG means to me – case studies

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Andy Thorburn – Chief Executive Officer

"I feel very strongly that at EMIS we always do the right thing. It’s in the very fabric of our organisation and it inspires me every day..."

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Harvey McGrail – Warehouse and Logistics Operative

"Historically in the warehouse, we packaged items using plastic materials such as bubble wrap. We could use up to twelve rolls a month, which equates to 600 metres..."

Read more

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Lavanya Rajaram – Product Owner

"EMIS has many benefits for employee wellbeing. I was able to take leave when I had Covid-19, which gave me time to recover. The introduction of the new marriage leave..."

Read more

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Koushik Narayanan – Software Engineer in Test

"Last year I was admitted to hospital locally here in Chennai for a severe medical condition and I was unable to work for two months. During this time, EMIS really supported me..."

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Michaella Biscomb – Head of Customer Communications

"Inspired by the company’s wider ESG approach, the Group Marketing team have set itself a challenge to become the first carbon neutral team in the business..."

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Emma Coulson – Head of Clinical Implementation Service

"To help support the improvement of cancer care, we’ve worked closely with Macmillan Cancer Support to develop a number of electronic tools and resources..."

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Rachel McLaughlan – Fleet Manager

"Alongside the launch of our environmental targets which inform the recently established ESG strategy and the ongoing campaigns from our Green Champions..."

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Pankaj Mistry – Chief Information Security Officer (CISO)

"At EMIS we are serious about the responsibility of keeping patient data safe. We deploy a range of technical and non-technical measures to protect these valuable assets..."

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Insights

Redesigning primary care

Dr Edward Clode-Baker
Clinical Director, EMIS Group

"The pandemic was a catalyst to reshape traditional delivery methods in general practice. Despite the best efforts of the NHS, there were inevitably health concerns during the pandemic that weren’t addressed..."

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Gathering everyday health insights

Haidar Samiei
Clinical Director, EMIS Group

"I often joke that if I had remote access to my mum’s smart energy meter, I would be able to check up on her more easily. Peaks in electricity usage could show me that she’s up and about..."

Read more

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