Misys has had an encouraging first half, with year-on-year revenue increasing across the divisions, and exceeding our internal target. Our cost takeout programme is on track, and we are reinvesting much of this into the business to drive future revenue growth. We have rebalanced the portfolio and completed disposals which enable us to focus on our core strengths in the high growth areas of the markets we serve. We have a much improved financial structure and have moved the business from a net debt to net cash position, providing a strong base to build from. 

 

Group revenue is expected to show percentage growth in the low single digits (H1 2006: £223 million) and adjusted EPS** is expected to be in the range of 5.5p to 6.5p (H1 2006: 6.4p, including £10m profit (c. 2p) derived from Sesame which has been sold).

 

Revenue growth in both Misys Banking and Misys Treasury & Capital Markets (TCM) is expected to be in the mid-single-digit percentage range for the first half, as compared to the same period last year. Misys Healthcare is expected to report slight growth as compared to the same period last year. Misys Global Services is included in the divisional performance and expected to report half-year percentage revenue growth in the mid teens.

 

 

Misys Banking secured a number of valuable new name wins in the first half and the Misys BankFusion development work continues to be on track.   Misys Treasury & Capital Markets continued to make progress with its market leading solution offerings. Misys Healthcare has improved considerably and returned to growth as the benefit of earlier corrective actions comes through. Misys Global Services continues to ramp up and is making good progress with new service offerings.

We are seeing evidence that the corrective actions taken to get the healthcare business positioned for growth are having a positive effect. We rebalanced the business portfolio to focus on our core strength in the US ambulatory market, where we are a market leader. In October we launched Misys MyWay, the new electronic medical record and practice management solution, which is available as a hosted service and targeted at small physician practices. This has been very well received by customers and we are encouraged by early orders.

 

Continuing our theme of developing winning partnerships, we have made significant further progress against this key strategic imperative. Key partnerships announced in the period include: our global banking alliance with SAP; our landmark deal with HCL for product development, services and joint go to market opportunities in India and fast growing Asian economies where HCL has chosen Misys as their preferred banking software provider; and our partnership with Wipro Technologies where Wipro is building a centre of excellence around Misys Opics in the Middle East, where there is strong demand. 

 

The Misys and HCL partnership has already secured its first joint customer, Maybank in Malaysia.   

 

Misys’ business model and global footprint have helped to insulate the Company so far from turbulence in the macroeconomic climate. Misys Banking has not been affected, it has a huge customer base and growing recurring revenue streams. Spend on core banking products and services tends to be less discretionary as they drive productivity and efficiency improvements as well as mitigating risk. In addition, the majority of the Banking business comes from Tier 3 and 4 banks in Asia, Africa and the Middle East. More than half of revenue in Misys Treasury & Capital Markets is not dependent on new licence sales and this, coupled with a strong footprint in emerging markets, particularly Asia, helps to mitigate the effects that some competitors may face. 

 

Misys will announce interim results on 24 January 2008.

 

 

A conference call for analysts and investors will be held at 8.00am GMT. To access this call please dial +44 (0) 1452 555 566, conference ID 27843292.  The call will be available for reply from later today until 27 December 2007 on +44 1452 550 000; access code 27843292#.

Misys plc (FTSE: MSY.L), provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries. We maximise value for our customers by combining our deep knowledge of their business with our commitment to their success. 

 

In banking and treasury & capital markets, Misys is a market leader, with over 1,200 customers, including all of the world’s top 50 banks. In healthcare, Misys is a market leader, serving more than 100,000 physicians in 18,000 practice locations and 600 home care providers. Misys employs around 4,500 people who serve customers in more than 120 countries.

 

We aspire to be the world’s best application software and services company, delivering results for the most important industries in the world.

 

Misys: Experience, Solutions, Results