EMIS Group

AIM newcomer EMIS, the GP software supplier, has cheered investors with news of a significant contract win with NHS Glasgow to supply 243 practices in the region.

EMIS, which floated on AIM in March, raising £50m at 300p, supplies a variety of software, including EMIS web, which enables GPs to quickly access patient information and clinical records, and Q research, a database of patients used for medical research. The firm also produces software for use by dentists, entitled EMIS dental.

CEO Sean Riddell believes the NHS Glasgow deal will be worth around £1m per year to the company in ‘core annualised revenues’ and represents ‘excellent news' for EMIS. ‘As we outlined at the time of our IPO, Scotland represents a key growth market for the Company’, he enthused.

In the year to December 2009, EMIS grew profits by more than 260% to £14.5m, on revenue increased 4% to £57.6m – its market share last year was 52.4%, which compares to the 20% and 10% shares held by biggest rivals IPS and Torex.

Given its substantive share of an attractive growth market, its highly cash-generative model and recent profits momentum, as well as inroads being made into North America, EMIS, albeit a relative newcomer, is well worth keeping on your investment radar. As such, the shares are worthy of a speculation.