(Alliance News) - Shares in Micro Focus International PLC bounced on Tuesday after it announced it performed ahead of market expectations in the first half.
Shares in the enterprise software firm rose as much as 11% Tuesday morning before settling around 3.7% higher at midday, at 488.40 pence.
The FTSE 250-listed business said it expects to report revenue of around USD1.4 billion for the six months to April 30, ahead of market expectations and marking a decline of around 5% on a constant currency basis year-on-year. An adjusted earnings before interest, tax, depreciation and amortisation margin of around 36% for the period is also ahead of market expectations.
"Whilst there is a great deal to do, we are encouraged by our progress and remain committed to delivering revenue stabilisation and sustainable cash flow generation for our shareholders," said Micro Focus Chief Executive Stephen Murdoch.
Licence revenue is expected to rise by 10% from the first half of 2020, "demonstrating the continuation of sales execution improvements delivered in the second half of financial year 2020".
Micro Focus added that the recruitment of a new chief financial officer is at an "advanced stage", after announcing the departure of Brian McArthur-Muscroft in January. The same month, Qontigo - part of the Deutsche Boerse AG group - named McArthur-Muscroft its new CFO, who will join the firm "no later" than July 1.
Micro Focus will announce interim results for the six month period to April 30 on July 1.
By Will Paige; willpaige@alliancenews.com
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