The 19 per cent organic growth rate achieved by Misys' IFA business in the
last year helped make it the company's best performing sector.
But despite the success of the financial services division, Misys' share
price plummeted from 532p to 308p following the announcement of its annual
results last week. The figures came on the back of poor performance in its
banking and securities division.
Misys' overall operating profit was down from £82m to £75m.
Delays in completing banking and security orders means there will be150
jobs losses among its 3,000 staff in that division.
Acquisitions helped increase revenue at Misys Financial Services by 53 per
cent to £314m from £205m last year. Operating profits were up by
44 per cent to £27m from £19m.
Misys says its £75m acquisition in June of rival IFA network DBS
Management, including the Assureweb portal, will strengthen its IFA
activities and accelerate the development of its m-link electronic trading
portal if regulatory approval is received.
Developing the internet portal through its merger with Assureweb is a
priority and it plans to increase investment in this area from £3.8m
Misys says up to £10m invested in portal development will help take
manual activity out of the process and allow low-cost, high-quality
transactions to be completed online.
Chairman Kevin Lomax says: “Growth in mass affluence is driving organic
growth of Misys Financial Services. The cost pressure on product providers
to charge only 1 per cent of asset value, half of what they currently get,
is encouraging them to use low-cost distribution channels with small admin