Shares in Misys fell when the IT giant reported a gloomy outlook for its crucial financial services division.

The general insurance business just managed to hold its own, but overall the division's profits would fall, the company warned.

Last week's announcement forced the stock down by 30p, or 10%, to 260p from 289p.

Chairman Kevin Lomax said: "The general insurance business put in another good performance this year. This is a reflection of the size and stability of its customer base in the UK insurance broker market."

He expected progress, but warned that the financial performance of the financial services division would be below last year's.

The financial services division contributed 43% of revenue in the year ended 31 May 2003.