Misys shares rise on 66% profits jump

SHARES in Misys, an acquisitive computer services group, rose 11p to 518p after the company reported record full-year profits up 66 per cent from pounds 9.1m to pounds 15.1m, writes Russell Hotten.

A good performance by the Financial Services division, now including the Countrywide companies, was underpinned by strong organic growth.

There was an unexpected provision of pounds 1.2m for proposed reorganisation and other costs, principally within the Open Systems and Computer Services divisions. Total group sales rose 30 per cent to pounds 88.8m, with software sales up 41 per cent. A final dividend of 4.4p makes 7.01p for the year, up 15 per cent.

Misys has an executive in the United States searching for acquisitions, though the chairman, Kevin Lomax, said targets were being identified in the UK and elsewhere. Misys has pounds 21m in the bank, no borrowings, and an order book at record levels. R&D spending rose 30 per cent, and new products are being designed for local government, higher education and the drinks sector.