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

Projected earnings are reasonable.

But DYOH

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