LONDON -- EMIS Group (LSE: EMIS.L ) , the U.K.'s leading supplier of software and related services to general practitioners and a major supplier to high-street pharmacies, opened nearly 3% higher this morning on news that trading for the half-year was slightly ahead of expectations.
Rollout of its "next-generation" EMIS Web system has accelerated as expected, with nearly 750 general practitioners going live so far. And by September 2012, capacity will be in place to install 200 EMIS Web systems per month. This is only likely to strengthen the group's already dominant 52.2% market share of GP practices.
And it's showing on the books, as the group continues to be highly cash generative -- net cash at June 30, 2012, stood at 17.7 million pounds, compared with 12.8 million pounds at the same time last year.
Chief executive Sean Riddell sounded optimistic:
So far 2012 has been another busy year for EMIS Group. We have accelerated the roll-out to GPs of EMIS Web, our transformational healthcare system, whilst RX Systems continues to grow its market share. The outlook for the remainder of the financial year is encouraging and we continue to be positive about the Group's prospects.
We are delighted to be an integral part of what the Department of Health recently described in its new IT Strategy (The Power of Information) as 'the solid foundations [the Department of Health] have to build upon … providing one of the most successfully and universally computerised primary care systems in the world and national information flows that are the envy of many [other] developed countries.'
With the NHS increasingly putting information technology and computerized systems at the heart of delivering health care, EMIS Group looks well-placed to benefit from future opportunities to connect and integrate NHS systems.
This morning's update from EMIS Group shows that good companies can make attractive investment opportunities for ordinary investors.
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