Misys posts small loss

January 24, 2002 Posted: 0912 GMT

LONDON (CNN) -- British software group Misys posted a first-half loss on Thursday after closing Internet businesses and splashing out on acquisitions.

The company, which makes software for the healthcare and financial services markets, closed its consumer financial services portal called theformula and Screentrade, to focus on its other businesses.

Misys (MSY) made a loss of £300,000 ($430,000), or 0.1 pence a share, in the first six months of its year to November 30, compared with a net income of 27.3 million, or 4.7 pence, in the same period a year ago.

Sales at its banking and securities business declined 7 percent to £154 million as investment banks cut back on technology spending and an economic slowdown thumped the appetite for mergers, acquisitions and stock trading.  

Its software offers solutions to electronic brokering, capital markets and  money management.

But Chairman Kevin Lomax expects conditions in the sector to pick up because investment banks can not continue to reduce spending for prolonged periods of time with "damaging their competitive position."

"It is these factors, despite lower activity around the world, that lead us to the view that as confidence returns, our prospect pipelines will convert more rapidly into orders," said Lomax.

The company said first half operating profit from continuing operations before exceptional costs and acquisition costs fell to £54 million from £62 million a year ago. Revenue was £480 million, up 18 percent.

Analysts were forecasting a £38-£58 million operating profit and £420-£520 million revenue, according to Reuters.

Misys's stock rose 2.3 percent to 338 pence in early London trading on Thursday.