Lomax pockets £1.1 million as Misys books £4 million costs for failed offer process

Lomax pockets £1.1 million as Misys books £4 million costs for failed offer process

Misys paid former CEO and chairman Kevin Lomax £1.1 million to step down from the helm after he presided over a downturn in the company's fortunes and a failed bid for the embattled software house. The termination of the offer process led to a further £4 million in exceptional costs.

Details of the Lomax pay-off and bid costs were released in a trading update Friday, which recorded a cyclical imporvement in the banking systems business, but a slump in orders in the healthcare division.

Shares in the vendor slipped 18.75 pence in early trading before staging a mid-morning recovery to enter the afternoon at 212.25 pence, 1.5% down on the overnight close of 215.5 pence.

The stock is well down on a summer high of 275p, reached after Misys confirmed the approach of several potential bidders. The shares crashed to 185p in October when it was revealed that no formal offers had been forthcoming.

The latest set of of figures for the six months to 30 November, record a seven per cent growth in license fee revenue at the banking division to £124.8 million, on flat order intake. Professional services and maintenance revenues were also up by 11% and five percent respectiviely.

Turnover in the IFA division Sesame was up two percent at £183.9 million, raising expectations that the vendor will soon be able to offload the unit through a long-anticipated flotation.

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