Misys reports flat H1 revenues; to hand over more Allscripts cash to shareholders

Misys reports flat H1 revenues; to hand over more Allscripts cash to shareholders

Misys has reported flat first half revenues as growth in treasury and capital markets was again offset by a slight decline in banking. Meanwhile, the UK vendor has also revealed it will hand over to shareholders another £145 million from the sale of healthcare unit Allscripts.

For the six months, revenue was £161 million, flat on a constant currency basis. Operating profit was down 24% to £18 million but adjusted operating profit was £23 million, up five per cent on constant currency.

The treasury and capital markets unit saw revenue up three per cent to £83 million, with operating profit rising two per cent to £15 million, although order intake dipped by five per cent.

In contrast, the banking division reported a three per cent fall in revenues to £77 million and a drop of 20% in operating profit to £11 million.

However, order intake was up nine per cent (25% in the second quarter) with 13 customers adopting the new BankFusion system, taking the total number of sales to 26 for the Midas replacement.

Meanwhile, having already used around £525 million of the Allscripts proceeds on a share buyback, the vendor says it will return the remaining £145 million to shareholders by way of a pro rata return of capital together with an accompanying share consolidation.

It has also confirmed that a circular is being sent out today on the proposed £375 million acquisition of Sophis, with a shareholder approval meeting slated for 11 February.

Mike Lawrie, CEO, Misys, says: "Our medium-term financial targets, which were updated with the Sophis acquisition, are unchanged: annual revenue growth of 5-8% and adjusted operating margins of 20-23% for the Misys Group including Sophis."

Shares were down 3.7%, or 12.5 pence, to 320.4 pence in mid-morning trading.

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