Misys, the UK's biggest software company, has announced half-year pre-tax profits which slumped 18% to £48.3m.

The firm, which develops software for the financial services and healthcare industries, said the decision by banks and stockbroking houses to defer software purchases until the beginning of 2000, saw revenue decline from £287.9m to £280.6m in the six months to November 30.

However, Misys chairman Kevin Lomax, said orders in the current six months had rebounded and "we are very confident of returning to our long-term growth rates of about 20%.

Stockbroker Dresdner Kleinwort Benson reined in its full year profit forecasts from £139m to £131m but Misys shares improved 81p to 872p on the news of an improving order book. In Misys banking and securities division, orders for the initial licensing of software were £38m in the half-year compared with £32m in the same previous period.

Misys may consider floating off its internet arm, which includes Screentrade and other personal financial services, to realise its value.

Mr Lomax said the market was valuing pure internet players higher than those companies which incorparated the internet as a business division. He did not indicate a time frame for any such demerger. Misys intends to invest £50m in the next three years developing its internet services.

Howard Evans, finance director, said Misys growth would be focused on e-commerce principally in the financial services market. Banks and other financial services houses are expected to spend up to $9bn by 2002 on software for e-commerce activities globally. The interim dividend was increased 15% to 1.39p a share.