Misys saw its stock shoot up by 21% on an announcement that it will float its IFA business within two years.

The insurance IT specialist held on to much of the gain and was trading at 210p per share on Tuesday, compared to 174p the week before.

The company said it would wait for stock markets to recover before floating its network of 7,000 IFAs.

The announcement came as Misys unveiled results showing pre-tax profits - adjusted to exclude exceptionals, goodwill and certain investments - had fallen to £112m in the year to 31 May from £136m the year before.

Turnover rose above £1bn for the first time, rising 22% to £1.04bn, with £227.4m due to acquisitions. Pre-tax profits fell from £97.1m to £34.7m.

Misys' general insurance operations, which made profits of £12m last year, are not part of the flotation plan.

A company spokesman said: "They are core software businesses and it makes sense to keep them within Misys."