Software company Misys has reported a net loss for the six months to 30 November 2001, thanks mainly to lower order levels, as the global economy slowed, and exceptional operating costs.
However, the company said it remained cautiously optimistic for the second half of its fiscal year. It said it would benefit from the international nature of its activities and added that it was well positioned to make further acquisitions.
The company, which supplies software to the banking, financial services and healthcare sectors, reported a net loss of £300,000 for the six month period, compared to a net profit of £27.3m in the same period in 2000.
Turnover rose 14% to £480m, from £413m, but operating profit before goodwill amortisation and exceptional items fell 13% to £54m from £62m.
Including the charge for goodwill amortisation and exceptional items, operating profit slumped 74% to £10.7m, from £41m in 2000.
As part of its exceptional costs, Misys charged £10m for redundancies and provisions for vacated properties in the banking unit. It also shed 300 employees in the first half, which is about 10% of its banking workforce.
Misys said its other units, healthcare and financial services, which account for 22% and 37% of sales respectively, performed well in the period and hoped to maintain their strength.
The chief executive of the financial services division, Ivan Martin, said that revenues from it general insurance business had remained level over the period.
On Wednesday the company said it had signed an $18m contract with the Los Angeles County Department of Health, which should contribute to revenue over the next three years.
Despite the net loss, Misys raised its interim dividend payment by 15% to 1.84p compared with 1.6p a year earlier.
