Steve Moore and I worked together at t1ps.com from the day he left University. He is a very talented young analyst and a man of utter principle which is why he quit t1ps. He is now working with my on my Nifty Fifty website but also writing off his own bat and I am keen to support that. Apart from anything else he talks a lot of sense. As such I bring you an article he has published on tech stock Emis Group, a company I know absolutely nothing about. Steve writes…
Shares in EMIS Group (EMIS), a leading UK supplier of clinical software and related services to GP practices and other healthcare practitioners and a major software supplier to high street pharmacies, commenced 2013 at more than 900p but fell more than 16.5% (to 750p) on 24th January as the company reported “lower than planned revenues from the Australian defence contract, training and integrated care services. Group adjusted operating profit is expected to be marginally below analysts’ expectations, largely as a result of the accelerated staff and recruitment costs associated with the EMIS Web roll out and the slight revenue shortfalls highlighted above”. The shares have further declined since to trade at a current 650p, capitalising this AIM-listed company at £380.5 million. The following analyses whether this current, lower level represents value…
‘EMIS Web’ is the company’s ‘next generation’ clinical software system which enables GPs and other healthcare practitioners to connect with each other and securely share access to patients’ electronic health record. An accelerated roll out of this is noted to be “proceeding to plan”, whilst RX Systems, the group’s community pharmacy division, is “delivering a strong performance”. The company added the sum result is that group revenues for 2012 are expected to be not less than £86 million, with year-end net cash of £7.7 million.
on TradingResearchPoint | Comments