Mike Lawrie

Chief Executive Misys plc and Executive Chairman Allscripts

Competing harder, winning more

“We have experienced one of the toughest business environments for a generation, but we have continued to grow the Company by maintaining a laser focus on meeting the needs of our customers.”

This was a year of rapid change in the global business environment and one of strong progress for Misys. The Company was presented with tough challenges and terrific opportunities, and met both head on. We helped customers in financial services respond to unprecedented conditions. We completed the first go-live of our innovative Misys BankFusion solution. We rang the NASDAQ bell announcing the completion of the Allscripts-Misys merger. And we responded quickly to the introduction of the biggest ever US healthcare stimulus package, which potentially doubled our addressable market overnight.

Turnaround strategy

We have completed phase one of our transformation - ’Get fit’ and we are now firmly into phase two, focused on ’Winning more’. In last year’s Annual Report I estimated that this phase will take around two years to complete, and this timescale remains appropriate despite the downturn.

We remain mindful that we are operating in unpredictable conditions. This is probably the most difficult business environment for a generation. We are guarding against the downside while competing hard for growth. We continue to take a long-term view of our markets and aim to create a high-performance Company capable of securing a long-term leadership position.

Clear strengths delivering strong results

Throughout the year we saw the benefits of the Company’s core strengths and resilient business model. Our exceptional installed base, global coverage and mission-critical solutions combined to generate strong recurring revenue streams. We launched new platforms, solutions and upgrades on plan, adding value for our customers at every opportunity. And our services and support teams did more than ever before to help customers maximise their investments in our technologies.

As a result, the Company has improved profitability and customer satisfaction. Group revenue is up. Operating profit is up. Total order intake is up. Our employees are motivated and committed.

Building a platform for growth

Misys used to be viewed as a collection of parts - of different units and products. We are now one united Company, with excellent people using consistent processes to deliver integrated solutions. The enhanced quality and consistency we are introducing throughout the Company is having a positive impact on performance.

In practice, our improved processes work across everything from the way we support customers to the way we manage product development. We have streamlined our sales processes and forged strong relationships with key partners, such as HCL. We have built a new set of development capabilities around common processes, and removed duplication, unnecessary cost and inefficiency. We have built greater flexibility, scalability and interoperability into our solutions, and have been quick to partner with best-in-class providers if we think their technologies and know-how can add value for our customers.

As part of this work we have introduced a common system across Human Resources and a consistent training and development programme. We have also created a Company based on values rather than rules.

These enhancements are important if we are to transform Misys into a strong platform for growth. But our ambitions don’t rest there. Phase three of our turnaround strategy is ‘to lead’, and our objective is to turn Misys into a high-performance organisation - a leader that generates superior value for customers and investors.

Tribute to Sir Dominic Cadbury

Our outgoing Chairman, Sir Dominic Cadbury, has been instrumental in the success we have achieved so far. His decisive action and astute guidance has made the restructuring possible. I thank him for his exceptional support and wise counsel.

Looking ahead

The principles we set out at the start of our turnaround hold true today. We continue to put customers first and ensure we respond rapidly to their evolving needs. We will exert tight control on our operations, driving costs down, improving efficiency and continuing to invest for the future. Finding new ways to add value for customers remains our number one priority, and the most effective way to create value for our shareholders.

Mike Lawrie

Chief Executive