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Licence sales boost Misys interims

Alex Scroxton
In an interim management statement published today, application software company Misys has reported growth in both sales and profits, with its healthcare unit singled out for particular praise.

Presenting unaudited figures for the third quarter of its fiscal 2010, which closed on 28 February, the FTSE 100 listed firm revealed that reported group sales dipped 1% year-on-year to £192m, but was up 7% on a constant currency basis, while adjusted operating profit was up 18%.

Growth of 10% in initial licence fee revenues across the business during the quarter was particularly encouraging, said Misys. The figure was helped along by licence sales growth of 56% at its Allscripts healthcare division.

"As expected we have seen improving revenue momentum in the third quarter," said chief executive Mike Lawrie. "Our strong, reliable business model and effective financial discipline are enabling us to continue to increase profits significantly."

Lawrie added that he saw "significant" sales pipelines at Misys' banking unit, suggesting the economic recovery is beginning to kick in.

The vendor reaffirmed its expectations for the second half of the financial year; it is targeting revenue growth of between 5% and 8% at constant currency rates, and adjusted operating profit margins of around 20%.

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