Margins improve at Misys

MISYS, the computer software and services group, yesterday announced interim pre-tax profits up 19 per cent at pounds 8m. The dividend was 3p, up from 2.6p, writes Diane Coyle.

Turnover, at pounds 42m in the six months to November, was only 2 per cent higher than last year. Misys saw its margins improve as it concentrated on providing software packages for niche markets.

More than half of the profits were made by its financial services division. Misys is a leader in software sales to independent insurance brokers and financial advisers.

With almost all its sales in Britain, and pounds 23m cash, it is on the lookout for businesses in the US. Kevin Lomax, chairman, said: 'We are number one or two in our UK markets. We are looking for businesses that give us headroom, and that means going international.'

The results were below analysts' expectations and the shares closed 11p down at 537p.