When I wrote this one up recently I mentioned something called the GPSoC Framework agreement which was due to be agreed by the end of this month as this seemed quite important to them. They announced in an RNS yesterday that commercial terms of Lot 1 of the expanded English GP Systems of Choice (GPSoC) Framework had been successfully finalised.
Lot 1 covers the centrally funded GP Clinical IT system functionality, support and hosting essential for a modern paper-light practice and already in use by a large majority of practices.The initial procurement contract runs for around two years to December 2016 and is expected to be extended a further two years thereafter. On the effect of this they said:
"The Board of EMIS Group confirms that it considers the outcome of the Lot 1 negotiations to be positive and in line with management's expectations. The revised Framework offers opportunities for EMIS Group to benefit from a degree of additional funding in exchange for expanded and enhanced capabilities and increased usage ("more for more") and EMIS Group expects no material effect on profits in the current financial year to 31 December 2014, with the benefit starting to flow in 2015."
So good that they got the work and should help to underpin this years forecasts with further benefits to come in 2015. They may also get some more work from Lots 2 and 3 which are to be decided later in the year which they discuss in the full announcement at the link above if you are interested. Encouraging news so happy to run with it and will have to see if there is any further price reaction to this in the next few weeks once the news is digested.