EMIS Group reports good underlying profit growth in the first half and the outlook for the year is unchanged.
Group revenue increased by 1% to £78.7m (2015 H1: £77.8m). EMIS said that while the rate of growth was lower than in recent periods, this reflected in part a limited contribution from acquisitions (£0.7m in the period) and also revenue headwinds in NHS spending on hardware, hosting contract asset revenues, the Australian business and a strong comparative period for project delivery in Secondary Care.
Recurring revenue nonetheless grew by 6% to £64.0m (2015 H1: £60.5m) representing 81% of total revenue.
Adjusted operating profit for the period was £17.7m (2015 H1: £16.9m), an increase of 5% including a £0.3m contribution from the July 2015 Pinbellcom acquisition.
Chief executive Chris Spencer said: "EMIS Group has again reported good underlying profit growth in the first half. The Board's outlook for the full year remains unchanged, with strong revenue visibility, growing market shares especially in CCMH and Community Pharmacy, and good momentum in our order books and pipelines.
"We are confident that the cost reduction measures we have taken will benefit our financial performance as the year progresses.
"Despite ongoing, post-referendum, political and economic uncertainty, the NHS continues to affirm EMIS Group's strategy of providing change-delivering digital technology helping to create faster, better, cheaper care.
"Matthew Swindells, NHS England's new national director for commissioning operations and information announced, in his first major speech on 5 July, that funding would be available for 'change projects' that require new technology and information to improve the quality and efficiency of care as part of an 'ecosystem for innovation' controlled by the patient."