Micro Focus expects revenue at top end of guidance

Micro Focus International said on Tuesday that it has made a strong finish to the financial year and expects revenues and underlying earnings before interest, tax, depreciation and amortisation to be at the top end of management views.

In a pre-close statement for the year ended 30 April, the FTSE 250 software firm said total revenues are expected to be around $1.25bn, with underlying adjusted EBITDA of at least $530m.

Management had guided for revenues to be down 2% to 4% on a pro-forma constant currency basis.

Taking into account the impact of foreign exchange movements in the second half of the year, pro-forma constant currency comparatives for the year ended 30 April 2015 are $1.27bn of revenue and $487m of underlying adjusted EBITDA.

Net debt as at 30 April was $1.08bn, including the net proceeds of the March share placing of $223m.

Excluding the placing proceeds, net debt would have been $1.30bn, which is better than the forecast range of $1.31bn to $1.33bn given in March, thanks to good cash collection in the final six weeks of the financial year.

At 0850 BST, Micro Focus shares were up 0.8% to 1,590p.