Midlands-based software supplier Misys yesterday said its core banking and health-care markets were continuing to grow following a restructuring at the banking business.
In a trading update ahead of results, Misys said like-for-like banking orders were up seven per cent to £84 million, while revenues rose seven per cent for the year to May 31.
Like-for-like healthcare orders were down four per cent to £55 million, with revenues up three per cent largely due to the sales team winning new customers.
Chief executive Kevin Lomax said: "We have continued to develop our core businesses of banking and healthcare, investing in our product portfolio to align it more closely with the higher-growth opportunities in our markets.
"Response to our investment has been positive, demonstrated by significant demand for a number of our key products and by new-name customer wins, but we know there is more to be done to maximise future growth."
Misys, which is based in Evesham, said its adjusted basic earnings per share would fall to between 14.1p to 14.6p from the 14.8p reported last year.
Misys added that the merger of its retail and wholesale banking operations was now complete.
"As a result of the restruc-turing, the division has incurred an exceptional charge of £14 million - including a £3 million write-off of capitalised development costs relating to Risk Vision - which is within the expected range indicated at the time of our interim results," the group said.
"Consequently, we expect to achieve cost savings of about £15 million in the financial year ending May 31 2007 which will largely be rein-vested in the business, particularly in product development."
Its support services division Sesame saw strong revenues growth, Misys said.
Like-for-like sales at the Sesame division, which provides support services to around 7,800 UK financial advisers, rose 18 per cent.
Earlier this year, Misys pulled out of negotiations to sell Sesame after balking at the sums that were offered.
Misys employs more than 6,000 people worldwide and counts 90 per cent of the world's top 50 banks among its customers. It also serves more than 92,000 physicians in the United States.
The healthcare business has benefited from the drive by governments to have medical data stored electronically so patients can be treated wherever they fall ill.
Earlier this month, Misys said it had received a request from certain members of its senior management team in regards to making a possible offer for the company.
The company created an independent board committee to consider the request and stated no price had yet been discussed. Reports have also suggested that a private equity firm could also be interested.
Analysts at Bridgewell Securities said in a note: "Divisional revenues look in line with forecast."
Results will be announced on July 27.
Shares clossed down 4p at 213.