Results out 6/12/2007/ Promises are positive.

Projected earnings are reasonable.

But DYOH

After the set back of the last six months, all now is going well with Microfocus. Director buys, a significant acquisition and an upbeat trading statement last week are all pretty persuasive.

Decent results today, divi up nicely, confident going forward.

55, the recovery would be beneficial to me. It looks good and results positive, but in this climate, God knows!

well spotted RF ..... not a company i have registered before though i see they are a leader in their field ...... sp was whacked by sudden resignation of their CEO, but several major brokers have subsequently upped the stock to BUY, even if a bit of that upside has already been absorbed

I bought in last week and topped up this morning...."the quantum leap" (very serious) tipsheet have been tipping this since may, but the sp has not been doing well....perhaps it has hit the bottom...

i get QL but failed to register this one

The share price went down last week because the highly respected CEO suddenly resigned.

A couple of days ago analysts were saying the drop had been overdone, hence the rise.

DD .... see post 5!

some chunky sales going through on the rise.

Sorry never saw that. It must be all the sweat beads running down my face looking at my share performances.

DD ..... having a tough time? ..... sorry to hear that

no I'm doing ok actually cynic. Been away for a couple of weeks so just settling back in and a little bored today as you can probably guess!

Gently rising again, hoping for a return to the 400p mark...

Good..gentle recovery going on here...nice !.

thanks for this one RF ..... only bought about 75% of norm, but it is indeed doing very nicely, and should continue to do so, prob with no great fireworks; that is fine by me

sp has rocketed this morning on very strong trading update

Yes...tremendous rise...

420 is the very obvious next resistance ..... sp likely to pause or even stumble as/when it gets there, but once through, it's in new territory

I've taken some profits ...perhaps too early.....such a sharp rise today and looking back at the previous chart a drop always follows...might come back in if steady rise continues...400p resistance mark....has had trouble before in breaking away from that.

i'll stay put for the moment and wait for the press reviews ..... do you still have the relevant QL article to hand?

I have it somewhere ......but it's too long to type out and I still don't know how to scan and upload things...must learn that one day...all very positive... no doubt in the next issue there will be an update...job to guess which way the sp is going to go because that was a hell of a climb this morning !.

PS : check out JKX....might be about to break out...from the 300p resistance area.

Broker Charles Stanley has described the turnaround in the performance of Compuware and Borland under the new ownership of Micro Focus as stunning.

The market appears to agree, with the share price of the UK legacy software specialist rising sharply in early trade on Wednesday.

Bought some back.....mistake not staying in.....just hope there is not going to be a pullback now.....though I wouldn't be surprised !.

Micro Focus started with buy rating at Citi, 650p target price
Citigroup analyst Timothy Shaw sees Micro Focus International as an attractive buying opportunity.

Acquisitions of Borland and Compuware's Testing businesses in 2009 have taken Micro Focus into the high-growth application analysis and testing markets, with cross-selling opportunities enabling it to gain market share.

'Market scepticism over the company's acquisition strategy and lack of CEO has ignored the structural growth story of the overall application development market, in which Micro Focus has expanded its product portfolio to exploit.

'Micro Focus trades at an unjustified 30% discount to UK Software peers when above-peer EBITDA margins and solid cash generation argue for a premium.'

Citi forecasts organic revenue growth of 8.2% CAGR (FY10E-FY13E) with testing revenues growing 15.1% CAGR (FY10E-FY13E). This generates forecast earnings growth of 13.8% CAGR (FY10E-FY12E).

Tried to short this stock @ 497.3 on 22nd Jan because it just seems to be defying gravity, got out quick yesterday @500.1 for a very small loss. Anybody have any thoughts?

made a purchase here with a T/S to come
10/Nov. culd have purchased at intraday
low.

Micro Focus International PLC

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

KBC Peel Hunt Ltd
22-10-10 BUY 108.22 38.49 15.40 111.29 39.05 15.62
Panmure Gordon
22-10-10 BUY 103.01 35.80 14.75 106.83 36.75 16.22
Execution Noble
19-10-10 BUY 84.65 34.97 11.32 90.50 36.16 12.26
Investec Securities
15-10-10 BUY 109.76 36.76 14.07 116.67 39.08 14.77
Numis Securities Ltd
12-10-10 BUY 99.23 34.02 13.93 106.01 36.34 14.69
Charles Stanley Securities
08-10-10 BUY 108.42 41.06 15.18 115.63 42.65 17.16
Evolution Securities Ltd
30-09-10 SELL 107.98 37.41 113.99 39.50
Singer Capital Markets Ltd
30-09-10 BUY 103.11 36.34 15.25 113.85 39.90 16.77
The Royal Bank of Scotland NV
27-09-10 BUY 100.54 36.47 14.54 103.41 36.82 15.18
Canaccord Adams
17-08-10 BUY 107.69 39.39 110.56 40.40

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 102.72 36.89 14.22 108.31 38.46 15.24
1 Month Change -3.39 -1.23 -0.18 -3.52 -1.29 -0.04
3 Month Change -17.48 -5.76 -1.63 -20.62 -7.84 -1.88


GROWTH
2010 (A) 2011 (E) 2012 (E)
Norm. EPS 52.55% -0.77% 4.28%
DPS 31.09% 40.52% 7.16%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)
EBITDA 116.64m 110.64m 115.13m
EBIT 98.45m 105.31m 111.96m
Dividend Yield 2.46% 3.46% 3.70%
Dividend Cover 3.67x 2.59x 2.52x
PER 11.07x 11.16x 10.70x
PEG 0.21f -14.53f 2.50f
Net Asset Value PS -56.36p 88.77p 109.58p

i think, but not absolutely certain, that i saw a comment in the press they could be a t/o target - good solid stuff i'm afraid!

Yep saw that cyners cheers. IBM and microsoft were mentioned but it also came up on my screener this weekend aswell.

not as thick as usual then - me, not you!
bought a few today and also UBM ..... have been in both in the past

hmmm UBM no resistance until 750p.

Im checking it out, cheers cyners.

TA pro chartist Zak Mir had this to say of MCRO yesterday after the close.

Zak Mir



Reged: 28/06/07
Posts: 1436
Re: MICRO FOCUS (MCRO)
#471736 - 25/10/10 05:53 PM Edit Reply Quote



Despite the fall today, while above the chart gap floor of 385p the upside for MCRO and a possible 448p 200 day moving average target is possible over the next month.

Micro Focus International ST: the upside prevails as long as 382.75 is support
25 Oct 2010 - 09:59

Click here to see our chart:
http://www.tradingcentral.com/chart/MCROGBp101025105717.gif
Our pivot point stands at 382.75.
Our preference: the upside prevails as long as 382.75 is support.
Alternative scenario: the downside breakout of 382.75 would call for 356.5 and
340.75.
Comment: the RSI is above its neutrality area at 50. The MACD is above its
signal line and positive. The configuration is positive. Moreover, the stock
is above its 20 and 50 day MA (standing respectively at 382.68 and 349.87).
Supports and resistances:
476.25 *
460.25 **
444.5
404.9 last
392.75
382.75 **
356.5 *
---
TRADING CENTRAL is a commentary service specialising in technical analysis.
For sales enquiries please call your Reuters account manager or TRADING
Central
by phone: New York (1) 212 812 2400 Ext 29, London +44 (0) 207 429 3980 or
Paris (+33) 1 5528 8040

What a nosedive this has taken....ouch !....used to be a darling of the stockmarket.....not so now !....

made a bit on these in 2010 from memory, but sure as hell happy i'm not holding now!

Surprising really....I bet a lot of people in the city will not be happy...

Easing sedately upwards this afternoon.

Suggests the drop could have been, indeed, overdone.

PG and PH have this morning announced an upgrade for MCRO from Hold to Buy.

Might get it over the 300 barrier this afternoon.

Micro Focus International plc

Response to press speculation



In response to recent press speculation and share price movement, the Board of Micro FocusInternational plc ("Micro Focus" or "the Company", LSE: MCRO.L) confirms that it has received a very preliminary, non-binding approach in relation to a possible offer for the Company.

The Board is currently considering its response to the approach. There is no certainty that any formal offer for the Company will be forthcoming nor as to the price at which any offer might be made.



As a result of this approach the Company is suspending its buyback programme until further notice.

We live in interesting times.

Now a question of the take out price.

450, do I hear?

be very very careful
the approach is currently tentative and even if a bid is tabled, it is worth remembering that many fail to conclude

%%0!!

Nice to see you again.

How are ye.

Indeed. On the other hand, the move may prompt others to enter the fray.

As always DYOR, reach your own conclusions and act upon them.

OK thanks, Fred. Nice weather for the time of year!!!!

my conclusion is to leave alone though if i was already a holder at a (much) lower price i just might add a few

Anyone looking at this might care to check on-line max buy/sell sizes.

Selftrade earlier cut back to 2250 max to sell, now down to a beggarly 500.

Buyers beware! Or is it a neat "mind game" playing way of discouraging new buyers??????

don't give a toss about selftrade ..... this stock is very liquid and tradeable on L2 as a true market in whatever size you wish - i.e. it's not even just an MM stock

I am removing ALL my research from here due to the constant personal abuse, defamation and distortions of it posted by:

ptholden

hlyeo98

halifax

blackdown

kimoldfield

cynic


This bunch of abusive retards is the reason MoneyAM will NEVER have a forum worth reading.

I have reported them to support by they do nothing, either because they want to force me to PAY them for the Traders Room or because they are too lazy to do anything. Maybe the people in support are the ones perpetrating the abuse, so as to force people to pay for the premium boards. Either way the service is sh1te and a disgrace to the finance industry. No wonder there is nobody left here apart from morons.

I will continue posting my good research on boards that are run in accordance with FSA and LSE listing rules and the interests of the market, not here where ar5eh0les rule the boards and all decent research is buried under their piles of sh1te.

Holders' declarations are coming through now. Worth noting that more are being shown on a certain other site than MAM......

Bain Capital is Micro Focus's mystery suitor
American private equity firm Bain Capital is the mystery suitor that has approached UK software company Micro Focus International about a potential 890m takeover.

By Ben Harrington 9:57PM BST 28 Apr 2011

Earlier this week, Micro Focus said "it has received a very preliminary, non-binding approach in relation to a possible offer for the company".
Micro Focus International

The approach is understood to have come from Bain Capital. It is thought Bain's original approach was pitched at 338p a share but the private equity firm could be willing to pay up to 450p a share.
Micro Focus, which updates computer systems and tests software, said: "It is currently considering its response to the approach."
However, it warned: "There is no certainty that any formal offer for the company will be forthcoming nor as to the price at which any offer might be made."
It is thought the private equity firm's approach could entice other parties to make a counter-bid.

"It will be interesting to see if this very preliminary discussion flushes out any other buyers and whether the strategic value arguments around modernisation in particular, really stand up," said analysts at broker Peel Hunt.
Trade buyers Hewlett-Packard, Microsoft, Oracle and IBM have all been tipped as potential buyers of Micro Focus in the past. Other private equity firms, such as Duke Street, may also be interested.

Micro Focus shares, which gained 13 to 371p on Thursday, have declined significantly over the past 12 months.
In part, this is because in February the company said overall revenues in the three months to the end of January 2011 were below management expectations. Revenues were weaker than expected as a number of large deals at the end of the quarter were deferred or lost, with North America being particularly weak.
The poor performance led to the resignation of Nigel Clifford, chief executive. Kevin Loosemore, non-executive chairman since 2005, became executive chairman. At the time, Mr Loosemore said: "My immediate priority is to deliver the year-end in line with shareholder expectations."
Analysts, though, are worried the company may yet miss market forecasts when it delivers its next set of figures. Broker Peel Hunt said: "We are reaching the nail-biting end of year."
Last year Bain bought SkillSoft, an Irish provider of e-learning software, for $1.2bn (721m).

Collins Stewart note out today:
This mornings pre-close update, brought forward from the scheduled release date of 12 May, will provide much relief. It confirmed that revenue and EBITDA for the year to 30 April will be in line with current market consensus and the range signalled on 15 February ($432-442m of revenue and adjusted EBITDA of $159-167m). Our estimates of $436m and $161m respectively are within this range but we were not alone in worrying that even these numbers might prove a stretch given the execution problems over the past few months. For all its recurring revenue, Micro Focus remains a very back-end weighted business and so hitting the Q4 target, albeit a significantly lowered one from six months ago, must be regarded as welcome news.
Fundamental value vs. takeout value
We believe that this mornings news, combined with the recent, more shareholder-aligned management remuneration structure, warrants an increase in fundamental fair value for Micro Focus. Our target price increases from 321p to 358p accordingly, equating to 10x 2012 earnings. If Bain Capital, or another financial or trade bidder, comes through with a formal offer for Micro Focus, we believe that more than 425p, or 8x 2012 EBITDA, would be a bonus. Given the lack of growth and structural issues, we do not expect a bidding war but recent M&A activity suggests that rational expectations are often irrelevant. In the meantime, we would advocate holding on for something north of 400p at least.

Up nearly 6% on reasonable volume in 30 mins of trading.
Hopefully the w/e will see a firm offer on the table.

with sp now hovering just below 400, risk/reward does not favour a new investment ...... 10% is a typical time/risk discount once a bid is tabled, so simple arithmetic

Update on potential offer and recent press speculation
Further to the announcement of 26 April 2011 and recent press speculation, the Board of Micro Focus International plc confirms that it has received a number of preliminary, non-binding approaches which it has chosen to explore (including approaches from Bain Capital and Advent International). At this stage there can be no certainty that any offer for the Company will be forthcoming nor as to the price at which any offer might be made.

This announcement has been made without the consent of Bain Capital and Advent International.

A further announcement will be made as appropriate.

Heres the note from Matrix:
We stick with the view that 450-455p is a realistic bid level. This would represent 13.4x CY11E earnings, 12.5x CY12E, ie. in line with Micro Focuss trading multiple aside from its particular periods of weakness around trading disappointments. Consolidation platform? We believe Micro Focus would represent an attractive consolidation platform for a private player looking to consolidate the fragmented legacy modernisation software market. The companys large (52% of rev) and sticky maintenance base at high margin offers a recurring cash flow stream that can be geared up against more aggressively in private hands, and the groups cash generation profile (FCF yield 9%) provides a valuation backstop.

BarCap saying much the same.
Our price target of 418p assumes very low revenue growth this calendar year and mid single digit growth next year. We are forecasting a small earnings decline for calendar 2011 but above mid single digit EPS growth in 2012. We consider our estimates cautious because of the well publicized internal problems that the company has experienced over the past year. However, we like the business model and believe with the right management the companys internal issues can be turned around, which could imply performance above our expectations. Under our current assumptions and the price target of 418p the stock would trade on 11.5x 2012 P/E vs the software group median of 15x. Maintain 1-Overweight, price target 418p.

Milan Radia at Jefferies urges caution:
Micro Focus revealed takeover discussions on 26 April, but is there enough synergy opportunity or hidden value in the company to ultimately make a transaction sensible? The cash flow profile will always create temptation, but sadly this comes accompanied by considerable baggage in the form of management discontinuity, failed acquisitions and declining end-markets. Recent share option-related activity appears ill-timed. We remain wary. Our detailed note is attached and takes a look at the fundamental growth issues that the business faces, together with analysis of the poor acquisition history.

hence what i wrote in 55

The market seemed to take a more optimistic view yesterday.

There is a theory that, even though it might be slightly unethical, the purchase of shares by the directors just before an approach was announced will possibly ensure that a deal goes through. Will the directors want to be left with a load of shares which will fall in value if a deal is not done? Just hope it all gets sorted out before the FSA says 'foul'.

Depends on timing. If the directors bought before the approach then all is fine and dandy.

In the present, we have not one but two named approaches, plus others as yet unspecified. This should concentrate minds, and sooner than later an opening bid will no doubt be made.

with sp now back to a realistic level (+/-375) relative to the potential bid mooted to be +/-450, it is now worth considering

Are you going to indulge?
Am already in and holding as, imo, this should go through, though opinion seems divided at what price.

as with XEL, i am quite tempted, but that will mean breaking discipline by putting more money into the market as i'm disinclined to sell anything

Still no word on a deal here. Sometimes, the longer it goes on, the less likely it seems, but time will tell.

StockMarketWire.com
Micro Focus has posted a pre- tax profit of $114.5m for the year to 30 April 2011 which is in line with previous guidance but below management expectations at the start of the year.

Group revenue was $436.1m, up 0.8%, but like-for-like revenues at constant currency declined by 6.0%.

Net debt at 30 April 2011 was reduced to $14.9m (2010: $68.2m), after a share buyback of $42.0m.

The Group has maintained the final dividend for the year at 16.2 cents per share (2010: 16.2 cents per share) giving an increase in total dividend per share for the year of 7.3% to 23.4 cents (2010: 21.8 cents).

Going forward the Group says that it intends to concentrate on protecting margins and will avoid taking on loss-making consultancy projects and it is likely therefore that in the near term that overall sales will decline.

Discussions with regard to potential offers for the Group continue but no update has been provided.

RBS note out today:
Todays statement from Micro Focus all feels like hard work; numbers are at the low end of expectations, the outlook points to limited momentum and there is no progress on the bid talks. The shares are likely to drift while the uncertainty continues.
Full-year results today look indifferent with revenues of $436m (vs guidance of $432m-442m) and adjusted EBITDA of $158.7m vs guidance for $159m-167m. Our numbers expense capitalised R&D. On that basis adjusted EBITDA was $149.5m vs our $152mF. These numbers reflect -6% organic growth. Meanwhile, cash numbers look good with strong working capital and accrued income trends and lower-than-expected cash tax. Overall, net debt came in at $14.9m, ahead of $33mF despite $42m of buybacks
The outlook statement points to a challenging near-term outlook, with the company indicating that licences need to return to growth (after -15% growth in FY11) in order to offset an anticipated decline in maintenance revenues. Forecasts already assume little in the way of growth, so there may not be dramatic forecast changes. However, there is clearly limited short-term momentum.
Aside from trading, it is disappointing that there is no update on the bid process, other than to say it is ongoing. The lack of conclusion implies a difficult sale process, which we believe has negative implications for pricing. Furthermore, management appears to be softening investors up to an independent future, with references to the "board considering all options to deliver shareholder value".
On unchanged numbers, the shares trade on a Dec 2011 EV/ nopat of just 11.4x, which looks undemanding and supports a medium-term buy stance. However, we acknowledge that given weak trading outlook and lack of bid conclusion, the shares are likely to drift while the uncertainty continues. In terms of downside support, it is worth noting that the company bought shares back before the bid talks at 323p.

Panmure note:
Who is the most materially undervalued of them all?
Results from IBM bode well for Micro Focus IBM reported that System z mainframe revenue was up 61%; MIPS up 86% YOY. This suggests that the Micro Focus user base is continuing to invest in their Cobol assets. This gives some comfort that Micro Focus can tap into growth. Similar to Misys, Micro Focus shares have been caught up in the fear replaces greed effect, due to a lack of news on the takeover. Micro Focus shares are likely to drift even though this is one of the most undervalued shares on an EV/EBITDA basis at 6.4x the sector average is 9.0x, and there is no bid premium in the share price. The P/E is 8.7x, FCF yield 12.3% and the dividend yield 5.3% (cover is 2.1x). Yes, the lack of bid news will leave the share price dangling in our view, but we retain our Buy.

Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) provides its Interim Management Statement for the period from 30 April 2011 to the date of this statement. Financial performance as described relates to the three month period ended 31 July 2011.

Trading ahead of Board expectations
Total revenues in the three months to 31 July 2011 were ahead of the budget approved by the Board on 14 April 2011 and similar to the prior year comparative period on a constant currency basis. The restructuring activity undertaken in the final quarter of last financial year resulted in costs being lower than the comparable period. As a result of these factors, Adjusted EBITDA was also better than the Board's expectations.

Financial position
After taking account of the $15m cash paid in acquiring the Group's headquarters building in Newbury and the cash outflow of $6.4m relating to the restructuring charges of $19m that were unpaid at 30 April 2011 the Group had a net cash position at 31 July 2011 of $0.8m. This compares to a net debt position of $14.9m at 30 April 2011 demonstrating further strong cash generation during the period.

If approved by shareholders at the AGM in September, the final dividend of 16.2 cents per share will be paid out at the end of September at a cost of approximately $32m. The full year dividend for the year ending 30 April 2011 would then be a total of 23.4 cents per share.

Offer Period update
The Group remains in an offer period and the Board continues to explore the potential to deliver value to shareholders through a transaction more quickly than is likely through the continued operational turnaround of the business. The Board believes that there is merit in continuing the current discussions, although there can be no certainty that an acceptable offer will be forthcoming, nor as to the timing of any such offer.

StockMarketWire.com
On 26 April 2011, Micro Focus International plc announced that it had received a very preliminary approach to acquire the Group.

Since then, the Board has held a number of discussions with third parties in relation to various potential transaction structures in order to establish whether a suitable offer for the Group would be forthcoming.

After engaging in discussions for a suitable period, the Board set a deadline for final offers of 19 August 2011. Based on feedback now received from these parties, the Board has terminated discussions and, as a result, Micro Focus is no longer in an offer period.

The Group also announces that, with immediate effect and at its sole discretion, it intends to resume on-market purchases of the Group's ordinary shares under its existing shareholder authority.

The Group currently has 197,816,844 ordinary shares in issue (excluding 8,206,992 held in Treasury) and having already bought back 8,223,092 shares since the last AGM, has remaining authority from shareholders to buy back up to 12,298,791 ordinary shares.

Micro Focus offer talks terminated


On 26 April 2011, Micro Focus International plc announced that it had received a very preliminary approach to acquire the Group.

Since then, the Board has held a number of discussions with third parties in relation to various potential transaction structures in order to establish whether a suitable offer for the Group would be forthcoming.

After engaging in discussions for a suitable period, the Board set a deadline for final offers of 19 August 2011. Based on feedback now received from these parties, the Board has terminated discussions and, as a result, Micro Focus is no longer in an offer period.

was nearly tempted in; so glad i wasn't

ahhh cynic hello
ditto that

StockMarketWire.com
Bain Capital says it is not considering a possible offer for Micro Focus.

For the purposes of Rule 2.8 of the City Code on Takeovers and Mergers, Bain Capital does, however, reserve the right to make an offer for Micro Focus within six months (1) with the agreement or recommendation of the board of Micro Focus; (2) in the event that a third party makes an announcement of a firm or possible offer for Micro Focus; (3) in the event that Micro Focus announces a 'whitewash' proposal or a reverse takeover; (4) if there is a material change of circumstances.

AGM Statement
Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L), holds its AGM at 3.00pm today at which the following statement will be made by the Group's Executive Chairman, Kevin Loosemore:

"Total revenues and Adjusted EBITDA continue to track ahead of the Board's originally budgeted expectations. The Board remains comfortable with its previous outlook guidance.

At 31 July 2011, the Group had net cash of $0.8m. Since 28 March 2011, the Group has bought back a total of 20.5m shares for a total outlay of $104.9m (65.5m) at an average price, including costs, of 319 pence per share.

At today's AGM, Micro Focus is seeking to renew its annual buyback authority up to a maximum of approximately 29.6m shares in order to give the Group the flexibility to continue the current on-market share buyback programme, should the Board so determine. In parallel to renewing this authority, the Board is continuing to evaluate its options with regards to alternative methods of returning capital to shareholders and the optimal timing and amount of any such return. The Board is keen to ensure that management's focus is on improving trading within the business and is mindful that in the current unstable macroeconomic climate it is prudent to maintain a relatively conservative balance sheet."

Micro Focus will announce a pre-close trading update for the six months to 31 October 2011 on 15 November 2011.

StockMarketWire.com
Micro Focus International reveals that both revenues and adjusted EBITDA for the six months to 31 October 2011 were above the range of analysts' expectations for the period.

On a constant currency basis revenues declined slightly compared to the prior year period, in line with Board expectations and consistent with the outlook statement included within last year's preliminary results, although favourable exchange rate movements will result in revenues being marginally ahead of the "as reported" comparable figure.

Adjusted EBITDA margin was approximately 40%, reflecting lower costs as a result of restructuring activity, as well as some benefit from exchange rate movements.

During the first half of the year the Group acquired its head office building in Newbury for $15m, bought back shares for $62m and paid $31m in a final dividend.

Following these cash outflows, at 31 October 2011 the Group's net debt position was $48m (30 April 2011: $15m) demonstrating further strong operating cash generation during the period.

The Directors of Micro Focus International plc are pleased to announce the agreement of a new banking facility with an enlarged group of banks comprising Barclays Corporate, Clydesdale Bank plc, HSBC Bank plc, Lloyds TSB Bank plc, and The Royal Bank of Scotland plc.

The new $275 million three year revolving credit facility will replace the existing $215 million revolving credit facility with Barclays Corporate, HSBC Bank plc, Lloyds TSB Bank plc, and The Royal Bank of Scotland plc which was due to expire in May 2012.

The margin on the new facility will be at the London Interbank Offered Rate(LIBOR) plus 1.75% - 2.35%, compared with LIBOR plus 2.25% - 2.75% in the existing facility, based on net debt to EBITDA ratio of up to 2.0 times. The financial covenants are (1) EBIT to interest cover ratio of a minimum of 4 to 1 and (2) Net debt to EBITDA limits of 2 times until 30 April 2013 and 1.5 times thereafter.

The new facility will be initially utilised to repay the outstanding gross debt under the existing facility which today stands at $70 million. Going forward, it may be used for acquisitions, dividends and/or share buy-backs and general corporate purposes.

Wonder what caused the rise in borrowings of $22m since 31st October - when they are supposed to be cash generative.

StockMarketWire.com
Micro Focus International has reported a 20% rise in pretax profit for its first half and confirmed it plans to return $130.4 million in cash to shareholders.

The company, which earlier in the year attracted bid interest from private equity houses Bain Capital LLC and Advent International Corp. but abandoned takeover talks in August, said it decided to return cash to shareholders after renewing its $275 million credit facility on improved terms last week. Under the plans, investors will be able to choose whether they receive the cash in the form of income or capital.

Micro Focus the software and IT consultant, saw its profit increase despite only a small rise in revenue as it reined in administrative costs and abandoned some loss-making product lines.

For the six months ended Oct. 31, the company made pretax profit of $75.8 million, compared with $63.2 million a year earlier. Revenue was up 1.6% at $219.2 million, although it fell 2.6% excluding the impact of currency movements.

Micro Focus raised its interim dividend 14% to 8.2 cents a share.

Ex-divi 4th Jan 2012 (5.26p)

"At the general meeting of Micro Focus held at The Lawn, 22-30 Old Bath Road, Newbury, Berkshire, RG14 1QN at 10.00 a.m. on 6 January 2012 the special resolution, set out in the circular published by the Company on 14 December 2011, to approve the adoption of new articles of association, the proposed return of value to shareholders of 45 pence per share via a B/C share scheme and the 22 for 25 share capital consolidation, was passed by shareholders. The full text of the resolution is shown in the notice of general meeting available on the Company's website at: www.microfocus.com"

StockMarketWire.com
Micro Focus International reports that trading in the three months to 31 January 2012 was in line with management expectations.

Following the Return of Value to shareholders of 45 pence per share totalling US$130m together with the Interim Dividend of 5.26 pence per share at a cost of US$15m, the Group's net debt position at 31 January 2012 was US$156m (31 October 2011: US$47.6m) demonstrating further good operational cash generation during the period.

Management's expectations for the six months to 30 April 2012 remain that there will be a similar revenue and Adjusted EBITDA performance to that achieved in the first half of the financial year.

Investec note :
"BUY - Micro Focus offers a low-risk, cash-backed value play, with re-based forecasts looking secure and any modest upside likely to support continued stock outperformance."

Brokers fully behind the stock
and not suprising a tech stock on a P/E
of just 9.6 for next year.

FAR too cheap.

Micro Focus International PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
11-04-12 BUY 106.03 43.30 61.28 111.71 46.83 17.86
Peel Hunt
05-04-12 HOLD 102.68 45.89 17.87 102.46 46.80 20.35
Canaccord Genuity Ltd
05-04-12 BUY 107.85 46.62 16.76 108.73 51.66 18.46
Singer Capital Markets Ltd
02-04-12 BUY 102.18 42.57 15.70 103.64 48.50 17.30
Numis Securities Ltd
13-03-12 BUY 98.75 42.20 104.26 48.67
Broker Name Withheld 3
22-02-12 BUY 109.50 48.22 17.26 110.39 53.15 19.01
Investec Securities
07-12-11 HOLD 102.34 36.24 15.70 106.78 37.82 16.49
Execution Noble [W]
22-09-11 NEUT 80.32 33.96 14.67
Merchant Securities Limited
15-09-11 SELL

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 104.26 44.24 26.12 106.83 48.52 18.45

1 Month Change 0.66 0.51 0.30 0.70 1.35 0.00
3 Month Change 1.95 3.18 9.61 0.42 4.72 0.62


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS -14.13% 36.60% 9.67%
DPS 53.46% 65.74% -29.37%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £93.39m £111.81m £114.19m
EBIT £73.05m £101.20m £102.59m
Dividend Yield 3.37% 5.59% 3.95%
Dividend Cover 2.06x 1.69x 2.63x
PER 14.43x 10.56x 9.63x
PEG -1.02f 0.29f 1.00f
Net Asset Value PS -47.84p 36.51p 68.22p

Extract from Vector Vest Analysis today.....

MCRO Micro Focus International


Capital Appreciation

Value: Value is a measure of a stock's current worth. MCRO.L has a current Value of 685.69p per share. Therefore, it is undervalued compared to its Price of 467.30p per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.

RV (Relative Value):

RV is an indicator of long-term price appreciation potential. MCRO.L has an RV of 1.38, which is very good on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.

MCRO MICROFOCUS INTERNATIONAL

STRONG BUY flagged up on bar Charts Site...

http://www.barchart.com/quotes/stocks/MCRO.LS

PLUS

Bar Chart Opinion......

http://www.barchart.com/opinions/stocks/MCRO.LS

Indeed indeed but looks like they are
making a comeback..........

New broker note out today.... wed.

Micro Focus International
FTSE 250
Technology
Buy
590
468.3
26.0%
Numis Securities Ltd


Target SP 590p Upside 26%.

Goldman Sachs note out today 555p
SP target.

27 Apr Micro Focus... MCRO Goldman Sachs 555.00

Pre-close Trading Update for the 12 months ended 30 April 2012
Micro Focus International plc ("Micro Focus" or the "Group", LSE: MCRO.L) expects to report results for the twelve months ended 30 April 2012 in line with previous guidance. Revenues are expected to be in line with current market consensus whilst Adjusted EBITDA will be towards the upper end of the range of analysts' expectations.

The Group's net debt position at 30 April 2012 was $115.6m (31 January 2012: US$156m) demonstrating further good operational cash generation during the period.

Preliminary results for the twelve months ended 30 April 2012 will be issued on 21 June 2012 and Micro Focus will host a technology investor day in the City of London on 10 July 2012.

StockMarketWire.com
Micro Focus reports operating profit of $155.8m for the year (2011: $120.5m)and profit before tax of $149.3m (2011: $114.5m)

Basic earnings per share were 65.77 cents (2011: 47.04 cents) representing an increase of 39.8%.

Kevin Loosemore, Executive Chairman of Micro Focus, commented: "The year ended 30 April 2012 was a period of stabilization of Micro Focus' business after the disappointments of the previous year and the opportunistic approaches from private equity.

"Our revenues are in line with both market expectations and the guidance we gave a year ago. Our Adjusted EBITDA is in line with guidance and is towards the upper end of market expectations. Strong performance in Asia Pacific and Japan together with stability in North America offset declining revenues in International where the macro economic conditions remained challenging."

"UBS has upgraded its rating for business software firm Micro Focus International (MCRO) from 'neutral' to 'buy' and raised its target price from 570p to 600p, saying that the group's promise of high cash returns outweigh its modest growth prospects.

UBS said that 2013 is a year of "getting fit". Growth guidance is "unexciting" (at best 1%) but the investment thesis is based around potential cash returns, the broker said. "

StockMarketWire.com
Micro Focus International reports that adjusted EBITDA in the period to 31 July 2012 was in line with management expectations and with the same period last year on a constant currency basis.

Revenue in the comparative period benefited from a large one-off licence transaction in the test business. If this were excluded, constant currency revenue has followed the pattern expected with underlying growth in licence fees and decline in maintenance and consulting.

Management's guidance for the full year remains unchanged from that given in the preliminary results for the year ended 30 April 2012 issued on 21 June 2012.

At that time Micro Focus provided guidance that overall revenues in the current year ending 30 April 2013 would be in the range of +1% to -3% on those reported in the year ended 30 April 2012 on a constant currency basis.

Reported revenues in the current year will be impacted by exchange rates, primarily due to weakness in the Euro:$ exchange rate. If the exchange rates experienced in the year to date were to continue for the remainder of the year then on a constant currency basis, the comparative reported revenues for the year ended 30 April 2012 would reduce from $434.8m to $422.2m.

Underlying Adjusted EBITDA is anticipated to be in the previously announced guidance range of 37% to 42%.

The Group's net debt position at 31 July 2012 was $90.4m (30 April 2012: $113.2m) demonstrating further good operational cash generation during the period.

Consistent with the Board's policy of delivering value to shareholders, Micro Focus proposes to return a further 50 pence per share to shareholders, equivalent to approximately $130m in cash and subject to their approval, by way of a B and C share scheme.

PROPOSED RETURN OF VALUE TO SHAREHOLDERS OF 50 PENCE PER SHARE VIA A B/C SHARE SCHEME
Further to the Company's IMS announcement on 16 August 2012, the Company announces that it is today posting a circular (the "Circular") to its shareholders containing details of a proposed 50 pence per share (approximately £82.0 million or $129.3 million in aggregate) return of value to Shareholders (the "Return of Value"). The Circular will include a notice convening a general meeting of the Company to approve the Return of Value and an associated share capital consolidation.

The Board has decided to effect the Return of Value through a structure involving an issue of B Shares and/or C Shares which would enable all Shareholders, subject to applicable overseas restrictions and tax laws, to elect to receive their Return of Value proceeds as either income (the "Income Option") or capital (the "Capital Option") or any combination of the two. Under this proposal, referred to as the "B/C Share Scheme", and subject to shareholder approval being obtained, for every 1 existing Ordinary Share held at 6.00pm on 25 October 2012, 50 pence is to be returned to Shareholders through the issue to them of either one B Share, which will be redeemed by the Company for 50 pence, or one C Share, on which a dividend of 50 pence will be paid or which will be purchased by Numis, acting as principal (and not as agent, nominee or trustee), at 50 pence per share under an offer to be made by them.

MCRO MICRO FOCUS

Didnt realise it was on such a cheap rating.

P/E 10.6 to 2014

Micro Focus International PLC

FORECASTS 2013 2014
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Peel Hunt
20-09-12 BUY 97.21 47.00 23.50 101.29 51.34 25.67
Westhouse Securities
20-09-12 BUY
Panmure Gordon
20-09-12 BUY 105.56 51.22 71.20 108.06 55.22 73.08
Merchant Securities Limited
14-09-12 HOLD 110.20 50.84 23.01 115.22 53.29 24.16
Singer Capital Markets Ltd
14-09-12 BUY 98.34 47.88 21.96 100.02 52.10 24.16
Investec Securities
17-08-12 BUY 105.45 52.72 26.36 108.18 59.90 29.98
Canaccord Genuity Ltd
06-08-12 BUY 108.94 51.24 23.17 115.26 54.92 24.98
Numis Securities Ltd
21-06-12 BUY 111.06 48.60

2013 2014
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 104.50 49.88 32.34 107.46 54.30 34.47
1 Month Change -2.43 0.09 1.25 -2.85 0.81 1.62
3 Month Change -2.00 1.46 12.49 -1.47 2.78 12.73


GROWTH
2012 (A) 2013 (E) 2014 (E)
Norm. EPS 21.04% 27.24% 8.87%
DPS -3.15% 111.92% 6.60%

INVESTMENT RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £117.09m £111.70m £114.10m
EBIT £94.52m £102.85m £105.32m
Dividend Yield 2.64% 5.60% 5.96%
Dividend Cover 2.57x 1.54x 1.58x
PER 14.74x 11.59x 10.64x
PEG 0.70f 0.42f 1.20f
Net Asset Value PS -95.75p 15.46p 7.84p

Broker Buy Targets.

Date Company Name Broker Rec. Price Old target price New target price Notes

26 Sep Micro Focus... Panmure Gordon Buy 581.25 620.00 620.00 Retains
25 Sep Micro Focus... Canaccord Genuity Buy 581.25 600.00 675.00 Reiterates
25 Sep Micro Focus... Numis Add 581.25 610.00 610.00 Reiterates
04 Sep Micro Focus... Peel Hunt Buy 581.25 615.00 615.00 Reiterates

675p SP Target for Canaccord.

Stock looks way too cheap to me.

NORWICH & PETERBOROUGH BUILDING SOCIETY

MCRO MICRO FOCUS

P/E of just 10.6 for 2014 very
cheap for a Tech company.

INVESTMENT RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £117.09m £111.70m £114.10m
EBIT £94.52m £102.85m £105.32m
Dividend Yield 2.64% 5.60% 5.96%
Dividend Cover 2.57x 1.54x 1.58x
PER 14.74x 11.59x 10.64x
PEG 0.70f 0.42f 1.20f
Net Asset Value PS -95.75p 15.46p 7.84p

Heading for 10 years high. that would be some achievement.....

Broker Note out late yesterday....

Micro Focus International PLC

FORECASTS 2013 2014
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
27-09-12 BUY 105.56 51.22 71.20 108.06 55.22 73.08

MCRO Micro Focus

Some pretty impressive statistics

P/E of JUST 10.6 to 2014 and a
Divi Yield of 5.87%.

Stock is way undervalued imo.

INVESTMENT RATIOS
2012 (A) 2013 (E) 2014 (E)
EBITDA £117.09m £110.76m £112.82m
EBIT £94.52m £98.80m £101.38m
Dividend Yield 2.64% 5.50% 5.87%
Dividend Cover 2.57x 1.56x 1.59x
PER 14.74x 11.66x 10.68x

MCRO MICRO FOCUS INTERNATIONAL

Latest Broker SP targets.....

Date Broker name New Price Old price target New price target Broker change

26-Sep-12 Panmure Gordon Buy 581.00p 620.00p - Reiteration
25-Sep-12 Canaccord Genuity Buy 586.00p 600.00p 675.00p Reiteration

Broker Brief.....

10 Oct Micro Focus... MCRO Barclays Capital Overweight 573.00 583.00 600.00 600.00 Reiterates

600p SP target.

And another......

10 Oct Micro Focus... MCRO Panmure Gordon Buy 573.00 583.00 620.00 620.00 Retains

620p SP Target.

22 Oct Micro Focus... MCRO Barclays Capital Overweight 565.00 565.50 600.00 600.00 Reiterates

Broker Panmure Gordon says BUY Micro Focus (MCRO LN) with a 620p price target. Says today's news about the return of value underscores the fact that Micro Focus is the sector's ATM share. In the broker's view, Micro Focus will do another return next year, so investors should not see this as a one off (admittedly given the track record a two-off) event. Yes there are macro clouds in Euroland but the lights are still on and the broker is reminded from re-reading the BMC survey that mainframe machines remain an 'investment' for their users.

A modest PE of 11.4, a 27% discount to the sector. A cash return of 95p handed back to shareholders in the last 18 months. Future dividend yield just over 4%, perhaps more cash returns in 2013, up to 70p a share.

Investment bank Canaccord Genuity has a 700p price, implying further upside.

StockMarketWire.com
Micro Focus International announces that one of its subsidiaries has reached a definitive agreement with Progress Software Corporation for the acquisition of intellectual property and other assets and the assumption of liabilities associated with Progress's Orbix, Orbacus and Artix software product lines, for a total consideration of $15m.

The consideration will be satisfied in cash at completion using Micro Focus' existing banking facility. Completion of the transaction is subject to certain conditions, primarily relating to transfer of staff and certain contractual consents, and is currently expected to take place on or before 21 January 2013.

This weeks SM - New management ,new products and better routes to market are all playing their part and the lowly modest price/earnings multiple of 11.7 suggests there is re-rating potential, as that represents a 26% discount to the broader software sector.

StockMarketWire.com
N+1 Singer has downgraded its recommendation on IT firm Micro Focus (LON:MCRO) to "hold" from "buy" expecting the shares to pause for breath after their recent rally. The stock has risen in value by nearly 20 per cent since its recent low point on 11 December 2012. The City broker has nudged its target price up slightly to 655 pence per share from 645 pence. "We turned buyers of Micro Focus this time last year (share price 445p vs. current 642p) as we liked its risk/reward profile, with management setting prudent expectations and the increasing prospects of significant cash returns to investors,analyst Tintin Stormont said in a note this morning. Organic top line growth still remained elusive for the group in the last year, though good cost control meant EBITDA margins were at all time highs and cash generation remained a strong feature. We await the return of some top line organic growth to get more excited."

Completion of acquisition
RNS
RNS Number : 0518Y
Micro Focus International plc
18 February 2013



18 February 2013

Completion of acquisition of Orbix, Orbacus and Artix software product lines

from Progress Software Corporation

Further to the announcement on 24 December 2012, Micro Focus International plc ("Micro Focus", "the Company" or "the Group", LSE: MCRO.L) confirms that on 15 February 2013 one of its subsidiaries completed the acquisition of intellectual property and other assets, and the assumption of certain liabilities associated with the Orbix, Orbacus and Artix software product lines, from Progress Software Corporation ("Progress") for a total consideration of $15m. The consideration has been satisfied in cash using Micro Focus' existing banking facility.

Completion of the acquisition was delayed from 21 January 2013 awaiting certain contractual consents. Micro Focus now anticipates that the acquisition will contribute approximately $3m of revenue in the period from completion to 30 April 2013. For the financial year commencing 1 May 2013 Micro Focus continues to expect that the acquired assets will contribute to the stabilisation of the Visibroker business and deliver at least $14m in revenues. Micro Focus will manage the acquisition to deliver Adjusted EBITDA margin at least in line with the Group's latest reported level of 44.5%. The acquisition is expected to meet Micro Focus' tight financial parameters for acquisitions, and to be earnings enhancing in the current and future financial years.

Micro Focus also announces that its Q3 Interim Management Statement for the period from 31 October 2012 to 20 February 2013 will be issued on Thursday 21 February 2013.

Interim Management Statement
RNS
RNS Number : 3465Y
Micro Focus International plc
21 February 2013



RNS

21 February 2013



Micro Focus International plc

Interim Management Statement for the period from 31 October 2012



Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) provides its Interim Management Statement for the period from 31 October 2012 to the date of this statement. Interim Results for the six months ended 31 October 2012 were announced on 6 December 2012.



Trading update

Trading in the three months to 31 January 2013 was in line with management expectations at the time of the Interim Results. There was an adverse movement in currency rates in the period compared to the same period last year such that the year to date currency impact is broadly neutral as compared to a $3.6m currency gain last year.



Net Debt Position

Following the Return of Value to shareholders of 50 pence per share totalling US$130m together with the Interim Dividend of 7.4 pence per share at a cost of US$18m, the Group's net debt position at 31 January 2013 was US$193.9m (31 October 2012: US$96.2m) demonstrating further good operational cash generation during the period.



Outlook

Management's expectations for the year ending 30 April 2013 are that on a constant currency basis revenues will be as guided at the Interim Results and that Adjusted EBITDA will be in line with current market expectations.

Sold my holding - been in since 565p

Well done DC.

Cheers skinny.

StockMarketWire.com

Canaccord Genuity has restated its 'buy' rating on Microfocus (LON:MCRO) and increased its price target by around 14 per cent to 800 pence per share (previously 700 pence) in a note to investors today. The City broker believes the company has the capacity to increase its net debt / equity ratio from 1.5x to 2.0x which would allow the company to increase its cash returns to shareholders by as much as 50 per cent for the next few years. Canaccord considers the shares to be attractively valued and advocates switching out of Sage (LON:SGE) and into Micro Focus. Shares in Micro Focus have increased in value by around 14 per cent since the beginning of the year. Broker Forecasts consensus data shows that 54 per cent of brokers rate the shares as a 'buy' versus 15 per cent which rate them as a 'sell'.

StockMarketWire.com
Micro Focus booked a full-year pretax profit of $153.4 million, from $149.3 million. Reported revenue was $414.0 million, from $434.8 million.

Its proposed total dividend was up 26.6% to 40 cents a share, from 31.6 cents. This included a final dividend of 28.1 cents a share, from 23.4 cents.

"Following last year's stabilization and focus on product management, the current year has been one of solid progress in a challenging market, with our focus turning to channels to market, marketing effectiveness and sales execution," said executive chairman Kevin Loosemore in a statement.

"We believe we have now laid the foundations on which Micro Focus can grow in the second half of the year ending 30 April 2014," he said.

Interim Management Statement for the period from 30 April 2013 and proposed cash return to shareholders of 60 pence per share

Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L), the international software product group, provides its Interim Management Statement for the period from 30 April 2013 to the date of this statement and announces a proposed return of value to shareholders of 60 pence per share, totalling approximately £90m ($140m) in cash.

Trading update
Revenue and Adjusted EBITDA in the period to 31 July 2013 were both in line with management expectations. Management's guidance for the current year remains unchanged from that given in the preliminary results for the year ended 30 April 2013 issued on 19 June 2013. At that time Micro Focus guided that overall revenues in the current year ending 30 April 2014 would be in the range of 0% to +5% on a constant currency basis compared to those reported in the year ended 30 April 2013.

As highlighted in the preliminary results, reported revenues in the current year will be impacted by exchange rates, primarily due to weakness in the Yen:$ exchange rate. If the exchange rates experienced in the year to date were to continue for the remainder of the year, the comparative revenues for the year ended 30 April 2013 would reduce from the reported $414.0m to $406.7m on a constant currency basis.

Net Debt Position
The Group's net debt position at 31 July 2013 was $145.7m (30 April 2013: $177.7m) demonstrating further good operational cash generation during the period. Micro Focus announced its new four year, $420m revolving credit facility on 17 July 2013 upon which arrangement fees of $3.8m were paid on execution of the agreement. Following completion of the new banking facility, the Board's target Net Debt ratio of 1.5x will be applied to the "Facility EBITDA" which is calculated as Adjusted EBITDA prior to amortisation of capitalised development costs.


Proposed cash return of value to shareholders
Consistent with the Board's policy of delivering value to shareholders, Micro Focus proposes, subject to shareholder approval, to return a further 60 pence per share, totalling approximately £90m ($140m) in cash, by way of a share scheme which involves the issue of a new class of D shares to shareholders (the "D share scheme"). The return of value uses a similar mechanism to previous returns of value and will be accompanied by a proportional share consolidation to maintain broad comparability of the share price and return per share of the ordinary shares before and after the return of value. The D share scheme will give shareholders (with the exception of Overseas Shareholders resident, or with a registered address, in a Restricted Territory†) a choice between receiving the cash in the form of either income or capital. A Circular will be sent to shareholders shortly, outlining the terms of the return of value and we anticipate that if shareholder approval is obtained at a General Meeting to be held on 26 September 2013, then the return of value will be completed in early November. The return of value will be funded from the Group's existing debt facilities. Absent a significant acquisition, a share buy-back opportunity or unforeseen circumstances the Board continues to intend to make a similar cash return to shareholders in November 2014.

Ex divi wed 4th Sept (17.9p)

StockMarketWire.com
Micro Focus International is proposing a 60p a share return of value to shareholders. It proposes to return about £90 million in total.

The proposal, along with an associated share capital consolidation, requires shareholder approval at a general meeting. Micro Focus has decided to effect the Return of Value through a structure involving an issue of D Shares which would enable all shareholders, subject to applicable overseas restrictions and tax laws, to elect to receive their Return of Value proceeds as either income, or capital, or any combination of the two.

StockMarketWire.com
Analysts at N+1 Singer have upgraded their recommendation on software firm Micro Focus International (LON:MCRO) to "buy" from "hold" given the compelling level of shareholder returns along with the company's increased organic growth prospects. The broker also believes the stock's current valuation is undemanding and has, therefore, raised its price target to 860 pence per share to reflect the company's positive performance outlook. The broker said: "After 10 quarters of overall stability, within which the group managed reductions in Consulting and Niche revenues, we believe prospects for delivering organic growth are improving. In the meantime, the base case is that the company continues to return significant capital to shareholders and has the firepower to make accretive acquisitions."

Micro Focus International plc ("Micro Focus", LSE: MCRO.L), the international software product group, will be holding its AGM at 3.00pm today followed by a General Meeting to approve the Return of Value of 60 pence per share. An update on trading and full year guidance was provided on 15 August 2013 and as such no further trading update will be provided by the company today.

Micro Focus will announce its Interim Results for the six months to 31 October 2013 on 4 December 2013.

StockMarketWire.com
Micro Focus' FY pretax profit slipped to $147.8m, from a restated $151.5m. Revenue was $433.1m, from $412.2m. It proposed a final dividend per share of 30 cents, from 28.1 cents, giving a proposed total of 44 cents, from 40 cents.

"Following a strong close to the financial year, Micro Focus announces total revenue growth at constant currency of 6.4% which was marginally above the 3% to 6% guidance range that we gave at the interim results in December 2013," said executive chairman Kevin Loosemore in a statement.

"Particularly pleasing was the return to like for like organic revenue growth in the second half of the financial year of 2.2% compared to a 3.1% decline in the first six months of the year. We have now at least met or exceeded market expectations for 13 consecutive quarters," he said.

"The board believes that the Company has demonstrated its ability to support a modest level of gearing and is now increasing the target net debt to RCF EBITDA multiple to 2.5 times. This will be achieved through planned returns of value and/or acquisitions should they be more value enhancing."

StockMarketWire.com
Micro Focus International said total revenues in the period to 31 July 2014 on a constant currency basis were in line with the same period last year whilst Underlying Adjusted EBITDA was ahead of the comparable period.

Growth in Maintenance revenues was balanced by a decline in Licence revenues. After a strong close to FY14, Licence revenues in International remained strong, whilst there was a small decline in Asia Pacific & Japan against a strong comparative period and the sales force restructuring in North America caused a drag in the quarter.

Management's outlook remains unchanged from that given in the preliminary results for the year ended 30 April 2014 issued on 19 June 2014.

"We believe we have a strong operational and financial model that can continue to provide strong returns to shareholders. The model requires low single digit revenue growth in the medium-term and we remain confident that this can be delivered."

If the exchange rates experienced in the year to date were to continue for the remainder of the year, the comparative revenues for the year ended 30 April 2014 would increase from the reported $433.1m to $435.2m on a constant currency basis.

The Group's net debt position at 31 July 2014 was $232.9m (30 April 2014: $261.0m) demonstrating further good operational cash generation during the period. In the preliminary results we announced an increase in the Board's target Net Debt ratio to 2.5x to the RCF EBITDA.

Consistent with the Board's policy of delivering value to shareholders, Micro Focus proposes, subject to shareholder approval, to return a further 60 pence per share, totalling approximately £84m ($140m) in cash.

The return of value uses a similar share scheme mechanism to previous returns of value and will be accompanied by a proportional share consolidation to maintain broad comparability of the share price and return per share of the ordinary shares before and after the return of value.

The share scheme will give shareholders (with the exception of Overseas Shareholders resident, or with a registered address, in a Restricted Territory⬠) a choice between receiving the cash in the form of either income or capital.

In order to facilitate the return of value, Micro Focus intends to utilise the accordion within its existing $420 million Revolving Credit Facility that enables the Group to increase the RCF to $520 million.

Initial conversations with the six banks in the RCF have been very positive and it is anticipated that the $100 million accordion will be oversubscribed.

Once negotiations on the RCF accordion are completed a further announcement will be made and then a Circular will be sent to shareholders, outlining the terms of the return of value and requesting shareholder approval at a General Meeting. Subject to these items it is anticipated that the return of value will be completed in November.

MCRO at the base of an uptrend channel with momentum behind it . The ceiling is my first target. Just gone long.

MICRO FOCUS INTERNATIONAL BROKER VIEWS

Date Broker Recommendation Price Old target price New target price Notes
29 Aug Panmure Gordon Buy 843.00 918.00 918.00 Retains
28 Aug Canaccord Genuity Buy 843.00 1,003.00 1,003.00 Reiterates
19 Aug N+1 Singer Buy 843.00 - 990.00 Reiterates
15 Aug Barclays Capital Overweight 843.00 - - Reiterates
14 Aug Credit Suisse Neutral 843.00 970.00 970.00 Reiterates

it's certainly rocking n rolling, but volume is still <10,000

Get em bought you skinny git.

i did - just a few though a bit late at 847
used to hold this years ago

Good lad you know it makes sense.

that was a good bunny out of the hat!
very many thanks, though i suspect even you would blush to claim you already had an inkling

confess i don't know what this deal is actually worth to the shareholders, other than there will be a 60p special divi

he he ha ha got very lucky here then cyners.

When do we get the 60p a share back????????

CORRECTED Micro Focus agrees all – share merger with The Attachmate Group

15 Sep 2014 - 08:12

(Corrects stake in para two from 40 pct to 60 pct)

LONDON, Sept 15 (Reuters) – British mainframe computer specialist company Micro Focus International said on Monday it had agreed an all-share merger with rival The Attachmate Group Inc in an deal valuing the groups' combined capital and debt at $2.35 billion.

Micro Focus said on Monday its shareholders would receive about 60 percent of the equity in the new group, which based on Micro Focus' closing share price on Sept. 12, values the British company at about 729.6 million pounds, or $1.18 billion.

It also said it would return about 60 pence a share to investors.

(Reporting by Paul Sandle; Editing by Karolin Schaps) ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net)

looks like we crossed over posts cyners.

i only bought a very few, but certainly a lot better than a poke in the eye, or even the arse with a sharp stick

LOL, some on twitter are accusing me of being in the know.

I hadnt a clue, but thier as been some weekend newspaper articles aspecially the FT.

Bit long winded that RNS though.

Just want to know when we get our 60p back.

15 Sep 2014 Micro Focus... MCRO N+1 Singer Buy 945.00 842.50 990.00 990.00 Reiterates

SP Target 990p

UPDATE 1 Micro Focus to buy The Attachmate Group in all – share deal

15 Sep 2014 - 09:59

Both companies help corporates update IT systems
Reverse takeover will see group re-listed in London
Micro Focus shares up 11 pct
(Changes slug, adds exec chairman, analyst comments, share reaction)

By Paul Sandle

LONDON, Sept 15 (Reuters) – British mainframe computer specialist Micro Focus International is to buy privately-owned U.S. rival The Attachmate Group Inc in an all-share deal valuing the firms' combined capital and debt at $2.35 billion.

Micro Focus said on Monday that following the reverse takeover, its shareholders would own about 60 percent of the equity in the new group which will be re-listed in London.

The two groups serve major corporate clients such as banks, retailers and airlines that run mainframe computers, helping them modernise the technology so that applications and databases can be accessed by newer systems, such as cloud technology.

"We aim to help customers sort out some of the challenges of their older IT systems and link them to new technology, so they can get more return on their current investments," Micro Focus Executive Chairman Kevin Loosemore told Reuters.

"This gives us a broader set of products to deliver that, and it also exposes us to some faster growing markets," he said in a telephone interview.

Loosemore said Micro Focus had been talking on and off with The Attachmate Group for about three years before finally agreeing a deal.

The owners of Houston, Texas-based Attachmate include the Francisco Partners Funds, the Golden Gate Funds, the Thoma Bravo Funds and the Elliott Management Fund.

Loosemore, who retains his position in the combined group, said the deal would lift Micro Focus's revenue to about $1.4 billion from about $430 million, and its underlying core earnings to more than $500 million from $196 million.

He said Micro Focus was buying Attachmate for about 7.5 times core earnings, a significant discount on the 11.3 times earnings Micro Focus trades at.

Share in Micro Focus jumped to an all time high of 935 pence, up 11 percent, following the announcement of the deal.

Analyst George O'Connor at Panmure Gordon, who has a "buy" rating on the shares, said the deal was a big step towards Micro Focus becoming an "all applications modernisation company".

"The acquisition has the same 'DNA' – it is a large systems enterprise software company, with high profitability and is cash generative," he added.

The two companies' net debt, comprising $233 million on the part of the British company and $1.17 billion on the part of Attachment, will be refinanced as part of the deal, Loosemore said. The combined group's debt ratio would increase to about 3.3 earnings, but this would be reduced to Micro Focus's long-term debt target of 2.5 times in about two years, he said.

Micro Focus also said it would still return about 60 pence a share to investors, as announced in August.

Micro Focus was advised by Numis and Attachment was advised by Morgan Stanley.

(Editing by Karolin Schaps and Mark Potter) ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net)

Keywords: MICRO FOCUS INTE M&A/ATTACHMATE

Lobbed a few off the top just to be sure.

Never know in these markets with Scots etc etc.

as previously advised elsewhere, i bailed out of these yesterday with a very respectable profit for the sum invested
a good and sensible move for a change as hindsight now supports

So did I first thing this morning.

StockMarketWire.com
Micro Focus International's H1 pretax profit in reported terms fell 19% to $57.1m, from $70.5m a year earlier. In constant currency terms it was down 15.7%. Total revenue in reported terms was $208.3m, from $207.5m.

Its dividend per share was 15.4 cents, up 10% from 14.0 cents.

Executive chairman Kevin Loosemore commented:
"This was a period in which we made further solid progress. Total revenues in the period ended 31 October 2014 were 0.6% ahead of the same period last year on a constant currency basis whilst Underlying Adjusted EBITDA increased by 8.7% and Adjusted EBITDA increased by 17.4%.

"Growth in Maintenance and Consultancy revenues was offset by a decline in Licence revenues. After a strong close to the year ended 30 April 2014, Licence revenues in International remained strong, whilst there was a decline in Asia Pacific and Japan against a strong comparative period and the sales force restructuring at the end of the year ended 30 April 2014 in North America caused a drag in the half year as the new teams were brought on.

"On 15 September 2014 we announced the acquisition of Attachmate, issued a prospectus on 8 October 2014 and completed the transaction on 20 November 2014. This is a transformational transaction for Micro Focus and has the potential to deliver significantly higher returns to our shareholders over the medium-term than our base case of 15% to 20% per annum.

"On 1 December 2014 we completed our 4th Return of Value to shareholders, this time for 60 pence per share, at a cost of £83.9m ($131.6m). This brings the total amount returned to shareholders since 28 March 2011 through share buy-backs, returns of value and ordinary dividends to £533.0m which represents 84.0% of the Market Capitalization at that time.

"In line with our new progressive dividend policy, we are increasing our interim dividend by 10.0% to 15.4 cents per share (2013: 14.0 cents per share).

"The acquisition of Attachmate represents a very exciting opportunity for the Enlarged Group. The initial phase of the integration has started and the medium-term objective remains the same - for low single digit revenue growth - in order to continue to deliver the financial model that we have set out."

StockMarketWire.com
Panmure Gordon cuts Micro Focus International to hold from buy, 1194p target unchanged.

one to short perhaps especially if the market in general starts to slide

StockMarketWire.com
Micro Focus International said its net debt at Jan. 31 was $1,510 million and that since that date the Group has used surplus cash and drawn down $75m of its $225m Revolving Facility to make a voluntary repayment of $150 million of the Term Loan B.

The Group's objective remains to reduce net debt to 2.5 times Facility EBITDA.

If this repayment had been made at 31st January 2015 it would not have impacted the Group's net debt position, however, following this voluntary repayment the gross debt of the Group (excluding $150 million undrawn under the Revolving Facility) totals $1,700 million (consisting of $1,125 million Term Loan B, $500 million Term Loan C and $75 million Revolving Facility) compared with gross debt (excluding $125 million undrawn under the Revolving Facility) of $1,875 million at completion of the transaction.

StockMarketWire.com
Micro Focus International confirms its full year guidance on a constant currency basis and provides an update on the integration of the Attachmate Group (TAG) into the Group following completion of the Integration Review.

At the Interim results presentation in December 2014, management provided guidance of combined pro-forma full year revenues of about $1,330 million and combined pro-forma full year Underlying Adjusted EBITDA of about $500 million, based on the exchange rates then prevailing.

The Board is pleased to confirm that the Group has continued to trade in line with this guidance on a constant currency basis. Since the turn of the calendar year the US$ has strengthened significantly against key currencies to which the Enlarged Group is exposed.

When comparing the spot exchange rates at 27 February 2015 to the average exchange rate experienced in the six months to 31st October 2014, the GBP is 7.4% weaker against US$, the Euro is 15.7% weaker and the Japanese Yen is 13.0% weaker.

If this spot exchange rate was used to restate the pro-forma full year numbers on a constant currency basis then pro-forma full year revenues would reduce from c. $1,330 million to $1,240 million and Underlying Adjusted EBITDA would reduce to c. $470 million.

Integration Review:

On 20 November 2014 Micro Focus completed its merger transaction with TAG. Since that date Micro Focus has been conducting a detailed Integration Review which is now complete. The objective of the review was to build a strong plan and foundation on which to deliver the Group's potential.

Prior to the merger with TAG, Micro Focus managed its portfolio of mature infrastructure products through a global product management and development organisation and with a geographic go to market (GTM) organisation.

Fundamental to this approach was an analysis of the individual products, their markets, customers and growth potential. This approach has served us well and as part of the Integration Review we have applied this approach to the portfolio of products in the Enlarged Group.

As the Linux market and Open Source community has unique characteristics, we will have a dedicated focus on the SUSE product portfolio headed by Nils Brauckmann as President and General Manager, SUSE.

This focus is essential if we are to capitalise on the growth potential of these products and be responsive to the open source community and heritage of SUSE. We are increasing the headcount dedicated to development, customer care and sales and marketing of the SUSE portfolio.

The rest of our products will be managed as a portfolio led by Stephen Murdoch, Chief Operating Officer of Micro Focus. This portfolio will comprise products that were in Micro Focus, NetIQ, Attachmate and Novell.

Breaking out and upwards.

The debt is a tad hairy but so long as they're generating this kind of revenue then the pe isn't demanding. Fantastic company for shareholders.

Citigroup reiterates buy on Micro Focus International, target raised from 1275p to 1450p.

StockMarketWire.com
Micro Focus International, the software product group, has reported a strong finish for the year ended 30 April 2015.

The Board says that the Group expects to report revenues and underlying adjusted EBITDA comfortably in line with guidance on a constant currency basis.

The TAG merger was completed in November and so Micro Focus's reported results will include the operating performance of TAG for the period from 20 November 2014 to 30 April 2015.

The Group expects to report revenues of around $835m and at least $345m of underlying adjusted EBITDA.

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StockMarketWire.com
Micro Focus is to acquire the entire share capital of Spartacus Acquisition Holdings, the holding company of Serena Software and its subsidiaries at an enterprise value of USD540m, payable in cash at completion.

"The acquisition is highly consistent with the Group's established acquisition strategy and focus on the efficient management of mature infrastructure software products," the company said in a statement.

The deal is being funded through the group's existing cash resources together with additional debt and equity finance arranged through Barclays, HSBC and Numis Securities.

The Group's existing revolving credit facility, which is currently undrawn, has been extended from USD225m to USD325m and Micro Focus is today raising approximately GBP150m through a placing underwritten by Numis Securities.

StockMarketWire.com
Micro Focus International said its full-year revenue came in at $3.2bn, down 12% on the year-earlier period, but up 1% when adjusted for divestitures and forex moves.

Its FY operating profit was $749m, representing an improved operating margin of 23.4%.

Fourth-quarter revenue was $903m, down 6% on the year but flat when adjusted for divestitures and forex moves. Q4 operating profit was $290m, revealing an improved operating margin of 32.1%.

StockMarketWire.com
Micro Focus has lifted its H1 pretax profit by 14.6% to $113.2m, from $98.8m a year ago. Dividend per share was 29.73 cents, up 75.5% from 16.94 cents.

Total reported revenue was $684.7m, from $604.5m.

"The board is delighted with our progress," said executive chair Kevin Loosemore in a statement.

"Our focus on delivering to our customers by making detailed product by product decisions and investments has resulted in the business achieving modest like-for-like revenue growth.

"Our investments have resulted in strong growth in SUSE and a reduced rate of decline in the Micro Focus portfolio.

"Whilst we have had a good start to the year and completed two acquisitions, we are maintaining our revenue guidance for FY17 being in the range minus 2% to zero% on FY16 on a constant currency (CCY) basis, pro-forma for the acquisition of Serena.

"Mergers and acquisitions continue to be a key component of our strategy. The key strategic announcement in the period was the HPE Software transaction which is on target to complete in the third quarter of calendar year 2017.

"This is a complex transaction that will transform the Group in a similar way to the Attachmate transaction back in 2014 and provides the opportunity for enhanced shareholder returns over the medium-term.

"The acquisition of Serena completed at the beginning of the period together with a number of small acquisitions across the business comprising GWAVA Inc., openATTIC on 1 November and the OpenStack IaaS and Cloud Foundry Paas talent and technology assets from HPE which was announced on 30 November and is currently expected to close in the first quarter of calendar year 2017.

"We are delighted to announce that our interim dividend is increasing to 29.73 cents from 16.94 cents in line with our twice covered dividend policy."

Micro Focus International plc ("Micro Focus" or the "Company"), the global infrastructure software business, and HPE announced on 7 September 2016 that they had reached a definitive agreement on the terms of a transaction (the "Transaction") pursuant to which the Company has agreed to acquire HPE Software by way of the merger (the "Merger") with a wholly owned subsidiary of HPE incorporated to hold the business of HPE Software for the purposes of the Transaction.

European Union Competition Clearance
Micro Focus and HPE are pleased to announce that they received confirmation earlier today from the European Union ("EU") that it will not initiate proceedings under Article 6(1) of the EU Merger Regulation in relation to, or any matter arising from, the Transaction ("EU Competition Clearance"). The Transaction has already received confirmation under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and remains subject to certain conditions including Micro Focus's shareholders approving the Transaction and the receipt of certain regulatory approvals which remain outstanding. A Circular will be issued to Micro Focus shareholders in May 2017 which will include a notice convening a general meeting to seek such shareholder approval.

Completion of the acquisition by SUSE of certain assets and talent from HPE
SUSE® has completed its acquisition of technology and talent from Hewlett Packard Enterprise (HPE), which SUSE announced late last year. SUSE will use the acquired assets to expand its OpenStack Infrastructure-as-a-Service (IaaS) solution and accelerate the company's entry into the growing Cloud Foundry Platform-as-a-Service (PaaS) market.

The acquired OpenStack assets will be integrated into SUSE OpenStack Cloud, and the acquired Cloud Foundry and PaaS assets will enable SUSE to bring to market a certified, enterprise-ready SUSE Cloud Foundry PaaS solution for all customers and partners in the SUSE ecosystem. In addition, HPE has named SUSE as its preferred open source partner for Linux, OpenStack IaaS and Cloud Foundry PaaS. The two companies also have a non-exclusive agreement under which HPE will OEM SUSE's OpenStack IaaS and SUSE's Cloud Foundry PaaS technology for use inside HPE's Helion OpenStack and Helion Stackato solutions. The net impact on Underlying Adjusted EBITDA of these arrangements in the current financial year is estimated at $3m and in the following 12 months is estimated to be $8m.

Intention to align Micro Focus's accounting year end with HPE Software's year end in connection with completion of the Merger
Upon completion of the Merger with HPE Software, Micro Focus intends that, in order to align financial year ends between HPE Software and Micro Focus and conditional upon the completion of the Merger, Micro Focus will align its year end with HPE Software's year end of 31 October, with the first accounting period to be audited after the Merger has completed being for the 18 months ended 31 October 2018. During this extended accounting period and in order to comply with the UK Listing Rules, Micro Focus will also publish an unaudited interim report for the six months ended 31 October 2017 and a second unaudited interim report for the six months ended 30 April 2018.

Further to the announcement by Micro Focus International plc ("Micro Focus" or the "Company") on 7 September 2016 relating to the proposed transaction whereby Micro Focus has agreed to combine with the software business segment ("HPE Software") of Hewlett Packard Enterprise Company ("HPE") by way of a merger (the "Transaction"), Micro Focus announces today that the registration statement on Form F-4 relating to the Micro Focus ordinary shares underlying the Micro Focus American Depositary Shares to be issued in connection with the Transaction (the "Form F-4") has been filed with the U.S. Securities Exchange Commission (the "SEC"). The Form F-4 filing can be found here: https://www.sec.gov/Archives/edgar/data/1359711/000156761917001576/s001663x9_f4.htm

The Form F-4 has not yet become effective and the information contained therein is subject to change. The Company expects the Form F-4 to become effective in mid to late August 2017.

Capitalised terms not otherwise defined in this announcement shall have the same meaning as those defined in the Form F-4.

Expected timetable of events:
The following dates assume the satisfaction of the conditions to completion of the Transaction by 30 August 2017 (other than those conditions that are intended to be satisfied contemporaneously with completion) but are indicative only and subject to change:

Publication of Prospectus

28 July 2017 Filing of Form F-4

3 August 2017 Record time for the Return of Value and Share Capital Consolidation

6.00 p.m. on 31 August 2017 B shares issued

7:00 p.m. on 31 August 2017 B shares redeemed

11:59 p.m. on 31 August 2017 Share Capital Consolidation effected and New Ordinary Shares admitted to the premium segment of the Official List and to trading on the London Stock Exchange's main market for listed securities

8:00 a.m. on 1 September 2017 Completion of the Transaction

StockMarketWire.com
Micro Focus International has completed the merger of its wholly owned subsidiary with Seattle SpinCo, which holds the software business segment (HPE Software) of Hewlett Packard Enterprise.

On admission, American Depositary Shares representing 222,166,897 consideration shares were issued to HPE shareholders, representing 50.1% of the fully diluted share capital of the company.

Micro Focus has completed the return of value to shareholders of approximately £386,130,203, in cash, by way of the B Share Scheme.

It is intended that cheques will be dispatched or CREST accounts credited (as appropriate) in respect of the proceeds of the redemption of the B Shares by 15 September 2017.

Chris Hsu, who was executive vice president and general manager of HPE Software as well as chief operating officer at HPE, has become chief executive officer of Micro Focus and an executive director of Micro Focus with effect from completion.

Stephen Murdoch (the former chief executive officer of Micro Focus) has stepped down from the board and has become the chief operating officer of Micro Focus.

Kevin Loosemore, executive chairman of Micro Focus, said: "The combination of Micro Focus and HPE Software represents a step change in Micro Focus' scale. The enlarged company's customer proposition draws on a rich heritage of technology innovation, global resources and a highly skilled workforce - all of which can now benefit from our effective business model.

"We are ideally placed to support customers and partners as they demand relevance and value from their established investments in technology. At the same time, this corporate development is wholly aligned with Micro Focus' commitment to deliver sustainable 15-20% annual shareholder returns, offering significant opportunities to deliver further value from the combined operations."

Another Shares magazine tip goes splat.

Biffa
Dignity

"The balance between risk and reward looks very attractive. Someone ain't doing their research!

Now this down 54% after being tipped last week in Shares!

Incredible its down 60%.

StockMarketWire.com
Software product group Micro Focus International downgraded its revenue guidance and said its chief executive, Chris Hsu, had resigned.

The company now expected revenue for the year through October to be 6-9% below the prior year. That compared to previous guidance of a 2-4% fall.

The impact of the downgrade on the adjusted Ebitda margin was expected to be mitigated by planned cost cutting, which was tracking ahead of schedule, the company said.

Hsu had resigned with immediate effect 'in order to spend more time with his family and pursue another opportunity', Micro Focus said. He had been replaced by chief operating officer Stephen Murdoch.

The revenue downgrade was blamed on several factors, including disruptions from the implementation of a new IT system, higher staff turnover, continued 'sales execution issues' and disruption of ex-Hewlett Packard Enterprise customer accounts as a result of a de-merger of Hewlett Packard Enterprise.

For the six months through April, revenue on a constant currency basis was expected to fall by 9-12%.

At the midpoint of the revenue guidance range, cost reductions would enable the company to achieve an adjusted Ebitda margin percentage of around 37% in the year through October.

'We remain confident in Micro Focus' strategy whilst recognising that operational issues have led to a disappointing short term performance and outlook,' chairman Kevin Loosemore said.

'We believe that Micro Focus is well positioned to help our customers with the increasing pace of change across their Hybrid IT environments and to deliver customer centred innovation.'

StockMarketWire.com
Software supplier Micro Focus International said it expected its annual revenue to be at the better end of its most recent annual guidance range, while also announcing that chief financial officer Chris Kennedy was leaving the company.

Trading continued to track in line with expectations, with an improved revenue trajectory in the second half.

Consequently, revenue in constant currency terms for the year through October was expected at the better end of a guidance range for a fall of between 6% and 9%, the company said.

Trading had also been consistent with the company's adjusted Ebitda margin guidance of around 37% at the midpoint of that revenue range.

Micro Focus said Kennedy would leave in the first quarter of 2019 to join broadcaster ITV.

He would be replaced by Brian McArthur-Muscroft, was most recently CFO of Paysafe Group and had also held the CFO role at TeleCity Group.

Micro Focus also announced that it planned to recommence its buy-back programme.

In the period 29 August to 24 October the company bought shares worth around $171m.

The extended program, when initiated, would cover an additional tranche of shares to a combined total value of up to $400m, inclusive of those already repurchased.