SHARES in the Misys banking and insurance group surged 59p to better than expected interim profit growth achieved after the £212 million takeover a year ago of the ACT Group, taking in the Kindle banking products business in Dublin.

First half profits rose 71 per cent to £19 million on turnover up 103 per cent at £129 million, mostly due to the inclusion of first time contributions from the acquired ACT operations, with Kindle chipping in nearly £4 million profits on sales around £25 million.

Cash generation at Misys has been strongly positive, reducing debt related to the ACT acquisition from £12.4 million to £5.9 million and providing scope for a reduction in future interest charges.

Against this backdrop, share analysts are now looking for full year profits to top £50 million, nearly double the level of Misys profit before the ACT takeover.

"Kindle has performed extremely well and is continuing to grow its sales in world markets," according to Mr Kevin Lomax, chairman of Misys.

"It has been very successful in India and Africa and is doing a lot of business in South America," said Mr Lomax.