BusinessBusiness RecoveryOverview: steady recovery

Overview: steady recovery

Prospects: The Misys reshuffle brings in US import Jim Malone

Struggling software corporate
Misys is in the early stages
of a five year turnaround programme after instigating a sweeping boardroom
reshuffle at the end of last year.

US import Jim Malone is the newest addition to the Misys team as the company
embarked on another key stage of new chief executive Mike Lawrie’s efforts to
orchestrate a turnaround of its fortunes.

What’s happened?

Misys announced this week that Malone had been drafted in to replace Howard
Evans after the outgoing finance director appeared to have become another
high-profile casualty of the failed management buyout last year.

Malone’s base salary will be £265,000 but his bonuses will be directly linked
to the future performance of the company. ‘There will be on target annual bonus
opportunity of 100%, rising to a maximum annual bonus opportunity of up to 150%
of his salary.’ Misys said.

What’s going to happen?

When he starts next week Malone will have his work cut out keeping the Misys
coffers in a healthy state. Under the terms of Misys’ strategic plan, Malone
will have to deliver annual cost savings of £25m in 2008, rising to £40m per
year from 2009.

This week the company also decided to sell off Sesame, one of its most
profitable arms to Friends Provident. It expects gross proceeds in excess of
£90m.

CEO Lawrie has said that Sesame is ‘a great business but it is not consistent
with Misys’ strategy going forward,’ preferring to concentrate on driving growth
and profitability in the core software and solutions businesses.

For the year ending 31 May 2006 Sesame reported revenues of £370m, so that
will remove one prop to revenues going forward. The market may be unsure of what
the future holds for Misys after the failed MBO last year, but Malone’s previous
experience may reassure the doom-mongers.

At his last post, Malone oversaw a 33% rise in revenues for the first quarter
of 2007 at US-based healthcare corporate the Trizetto Group, compared to the
same period in 2006.

Despite the Sesame sale Misys’ net borrowings are expected to increase by
‘approximately £20m as a result of the transfer of cash balances.’ An optimistic
Jim Malone said: ‘I am extremely excited to be joining Misys at this early stage
of its turnaround programme.’

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor