Misys reported a 22% increase in revenue for 2000 from £698m to £849m, and operating profit improved by 11% from £126m to £140m.

But the group saw its share price plunge by 28% after a profit warning that could see the group relegated from the FTSE 100 index.

The company said sales were likely to fall in the banking and securities division, which accounts for about 60% of profits. More than 150 staff are to be shed.

In better shape is the insurance division, recently renamed the financial services division, which showed positive results in 2000, with the acquisition of the Financial Options Group. Revenue was up 53% to £314m and operating profits rose 44% to £27m.

Misys spokesman Alistair McDonald said: “We have had a good year and profits and revenues are up considerably.

“We are cautious about some short-term prospects in banking but this is being balanced by the strong performance of health and financial services, helping to weather economic storms.

“There are still no indications that Misys has been affected by the economic downturn.”

June saw the closure of business-to-consumer (B2C) portals Screentrade and Theformula, after Misys failed in its bid to find a partner to share ongoing development and marketing costs.

Business-to-business (B2B) portals M-link and I2i-link have now been absorbed by the financial services division.

Closure costs of Screentrade and The-formula will amount to around £9m.

The company said: “Although we had established a strong foothold in the marketplace with Screentrade, consumers have been slower than expected to adopt the internet for buying personal finance products and, as a result, the risk profile could no longer be justified by the potential returns.”

Misys confirmed that investment would continue in the general and life insurance sectors, and in the areas of compliance and technology.

Last month, the company announced further plans for expansion, with a £75m cash offer made for the entire share capital of independent financial adviser (IFA) network DBS Management.

Also in June, Misys announced proposals to add to its healthcare division with the acquisition Sunquest Information Systems, in a cash tender offer of $404m (£288m). Sunquest provides clinical systems to hospitals.