Micro Focus ends year in line with forecasts

The FTSE 250 firm said that represented a decline of around 10% on a constant currency basis when compared to the 2019 financial year.

It said its adjusted EBITDA margin was expected to be 39% for the 12 months ended 31 October, which was towards the upper end of management expectations, following the execution of operational improvement and cost initiatives.

Cash was anticipated to be $0.7bn, and net debt $4.2bn, as at 31 October, with a continuation of “strong” cash generation and working capital management achieved in the first half of the 2020 financial year.

“We are now nine months into our three year turnaround plan for the group, and whilst there remains a great deal to do I am pleased with progress in both overall operational effectiveness and in the delivery of our key strategic objectives,” said chief executive officer Stephen Murdoch.

“Cash generation and working capital management remain strong, the investments we've made are showing encouraging early results and we continue to see a clear, ongoing customer need for our solutions and approach to digital transformation.

“I am confident we are making the changes and building the foundations necessary to continue to make progress in the delivery of our plan.”

At 0817 GMT, shares in Micro Focus International were up 19.76% at 325.4p.