Company financials: Misys bullish despite dip in profits

Company financials: Misys bullish despite dip in profits

Software company Misys has issued a bullish forecast for the coming year despite reporting a £6 million drop in operating profits to £55 million for the first half after Internet start-up spending.

Net income in the six months to end November 2000 declined to £27.3 million, or 4.7 pence a share, from 34.8 million, or 6 pence, in the same period a year earlier. Headline figures reported by Misys recorded operating profit, before goodwill amortisation and increased investment of £11m in the Internet Services activities, £3m (5%) higher at £66m.

The recovery in demand for products in treasury and capital markets, risk management, and securities trading has been strong, says Misys. Newer products have performed particularly well, the company reports, through the retail banking market continues to look sluggish.

Commenting on the results, Misys chairman Kevin Lomax said: "In the banking and securities division, the more mature products continue to make an important contribution to progress; the more recently developed products are finding wide acceptance, with strong growth in demand. Prospects for our wholesale banking products and their related professional services revenues, which account for the majority of divisional revenues, look particularly encouraging."

In a bullish statement, Lomax forecasts a period of significantly higher activity in banking and securities, with order intake well ahead of last year and increasing demand for professional services. First-half sales were ahead of the comparable period last year, though profits were lower, he said, with margins returning to pre-Euro and Y2K levels.

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