Misys reported a net loss for the six months to 30 Nov- ember 2001, due mainly to lower order levels, as the global economy slowed, and exceptional operating costs.

But 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 said it was well positioned to make further acquisitions.

Financial services division chief executive Ivan Martin said revenues from its general insurance business had remained level over this period.

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.

As part of its exceptional costs, Misys charged £10m for redundancies and provisions for vacated properties used by its banking division.