Misys to create new treasury and capital markets business

Misys to create new treasury and capital markets business

Misys is reporting full year results at the upper end of expectations for end-May 2005, driven by an encouraging recovery in the banking sector. The vendor is also moving to create a new treasury and capital markets division by merging the operations of Summit, Misys Opics and MisysIQ.

In a trading update, Misys is reporting ILF (initial license fee) order intake up 16% at £76 million, closing ILF order book up 18% at £31m, total revenues up seven per cent, all on a like-for-like basis.

The strong second-half performance reflected the signing of a number of large contracts which had slipped from the first half. Misys says protracted negotiation - especially in the larger contracts - is now a feature of the market, making it more difficult to predict when deals which have been awarded will be signed.

Commenting, Kevin Lomax, executive chairman, Misys, says: "This performance reflects some improvement in trading conditions but in particular the benefit of the actions we have taken. We continue to invest across our product range and to reposition Misys for growth."

In the banking division, Misys is moving to create a new treasury and capital markets business by combining three of its major products groups, Summit, Misys Opics and MisysIQ. Lomax says the move will enable the vendor to "accelerate product development and enhance customer service".

The new entity becomes one of the largest suppliers of treasury and capital markets systems in the industry, and reflects the increasing preference of banks to buy integrated enterprise-wide systems from large stable suppliers.

The subsumation of the Summit business has been on the cards for some time. Internal disagreements over the move led to the departures in January of Summit CEO Hervé Baulme and managing directors Xavier Bellouard and Georges Bory.

In the retail division, Misys has reiterated its intention to float the Sesame IFA network, which reported revenues down by five per cent and profits in line with expectations. The vendor has appointed corporate finance firm Lexicon Partners to assist in the preparatory work.

Shares in Misys inched ahead on the update, gaining 7.75 pence or 3.3% on the overnight close of 222 pence to stand at 229.75 pence.

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