Misys weathers the downturn; appoints former HBOS CEO as chairman designate

Banking systems vendor Misys has reported a positive set of first half results and named Sir James Crosby, former chief executive of UK banking group HBOS, as chairman designate.

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Misys weathers the downturn; appoints former HBOS CEO as chairman designate

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The vendor, which is mid-way through a five-year turnaround programme, reported revenue growth across all divisions. Adjusted operating profit from continuing operations was up three percent to £36 million, with revenues of £280 million.

In the banking division, Misys reported revenues of £84m, five per cent ahead of last year, and operating profit up 52% at £14m. Total order intake was £44m, up four per cent compared to the same period last year, with revenues from Initial License Fees up 14% at £23m. The first half performance saw 12 new name wins and 136 go lives.

Navigating the downturn, the treasury and capital markets division reported revenue at £73m, six per cent ahead of last year, and a steady operating profit of £14m. Total order intake at £33m was up five per cent from the comparable period last year. ILF revenue was down eight per cent at £17m, relative to a strong year-ago result which benefited from the carry over of contracts signed in previous periods. ILF order intake at £17m was up 11% compared to the same period last year.

Mike Lawrie, CEO, put the results down to a diverse product set and geographic footprint.

"While we are conscious of the difficult environment, we remain optimistic that we will deliver against our full year targets," he says.

Shares in the vendor remained steady at 115.5 pence

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Comments: (1)

Paul Penrose

Paul Penrose Head of Research at Finextra

With a focus on Tier 2 and Tier 3 banks in emerging economies, Misys' business model is relatively sheltered from the travails afflicting the world's top banks. Rival vendors Temenos and i-flex, which have a bigger slice of Tier 1 business, may not fare quite so well.

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